New Zealand: Offshore Trusts Guide
Review of the Law of Trusts
In 2009, the Law Commission of New Zealand was tasked with reviewing the Trustee Act 1956 and law of trusts generally. In particular, the Law Commission is taking a close look at the use of family trusts in New Zealand where it has been estimated that there is one for every 18 people, compared to one for 294 in Britain.
The government suspects that the use of trusts to avoid liabilities in New Zealand has increased considerably in recent years and the Victoria University of Wellington Tax Working Group has estimated that the ability to shelter income in trusts cost the government roughly NZD300m in tax revenue in 2007.
The Commission is tackling the review in 3 stages: Stage 1 examines the Trustee Act 1956, the Perpetuities Act 1964 and trust law generally; Stage 2 considers the Charitable Trusts Act 1957; and Stage 3 looks at the trustee companies legislation.