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Resigning as a trustee of a trust

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

If a trustee resigns and doesn't let IRD know, IRD will still recognise them as a trustee which makes them liable for any tax obligations of the trust. IRD will continue to recognise them as a trustee until IRD receive written confirmation.

For income tax and GST purposes, a trustee may be liable for any outstanding tax for the periods they were a trustee. This includes the period of time between their resignation and IRD receiving confirmation of the resignation. This liability continues until the debt is paid.