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20 Dec 2020

Income tax – trusts and the Australian–New Zealand Double Tax Agreement

The focus of this issues paper is the access to the Aus/NZ Double Tax Agreement for trusts.  It examines if a trust can access the benefits under the DTA and how residency is determined for a trust. It then explores the DTA’s accommodation of trusts as fiscally transparent entities to understand exactly what that means in the Trans-Tasman context for both trustees and beneficiaries. Finally there is an analysis of the credit allowance provisions that provide relief for tax paid in the other jurisdiction.


This issues paper was released for public consultation. Consultation closed on 1 March 2021.

This issues paper resulted in a new item being added to the Public Guidance work programme - see PUB00407: Income tax - Trusts - New Zealand-Australia DTA.

About issues papers

Inland Revenue’s Tax Counsel Office (Public Advice and Guidance) develops and publishes public statements interpreting the tax laws.

Where significant uncertainty exists, it helps us to hear from interested parties before we prepare a public statement. This generates discussion so we gain a better understanding of the issues, including practical concerns. An issues paper sets out our initial views on how the relevant tax laws may apply. If it results in the issue of a draft public statement, public consultation will occur in the usual manner.

Given that issues papers produced by the Tax Counsel Office represent our initial views only, taxation officers, taxpayers and practitioners must not rely on them. Only finalised public statements represent authoritative statements by Inland Revenue of its stance on the issues covered. 

Any views presented in an issues paper do not change the Commissioner’s current position or practices.

Find out more about issues papers