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Resigning as a trustee of a trust

May 30, 2016

If you are a trustee of a trust this information applies to you.

Trustees are personally liable for the tax obligations of the trust. If you resign as a trustee, IRD must receive this in writing, as soon as possible following the resignation, so they can update their records.

If you resign as trustee of a trust and don't send IRD written confirmation, they will still recognise you as a trustee, which makes you liable for any tax obligations of that trust. If you delay sending IRD written confirmation, IRD will recognise you as a trustee up until they receive your written resignation.

For income tax and GST purposes, you may be liable for any outstanding tax for the periods you were a trustee. This includes the period of time between your resignation as a trustee and IRD receiving written confirmation of the resignation.

This liability continues until any debt is paid.

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