The adoption of mildly progressive taxation by the New Zealand government in the early 2000s meant that it became more attractive for parents to channel income to their children via trusts. This development led to the passage of the Taxation (Beneficiary Income of Minors, Services-Related...

In 2001, Parliament determined to tax income that children under sixteen derive from trusts at 33 per cent rather than at the individual rates of the children concerned. This change in policy resulted in the Taxation (Beneficiary Income of Minors, Services-Related Payments, and Remedial Matters)...

The Taxation (Beneficiary Income of Minors, Service-Related Payments and Remedial Matters) Act 2001 taxes the income of most beneficiaries of trusts who are minors at 33 per cent. This measure responded to parents strategically diverting income to their children via trusts, with a view to that...