NZ Tax Return For Trust All NZ Income Subject To Withholding Tax

Question

An NZ trust only has bank term deposits which generate income in NZ. 20-33% withholding tax has been deducted. The trust has NZ settlors and Australian Trustees. Beneficiaries are NZ companies and Australian persons. ATO in Australia treats this trust as an Australian trust for tax purposes. Is the trust still required to file an NZ tax return?

Answer

The trust has earned income in NZ and is required to file a NZ income tax return.