Crown Forestry Rental Trust To Pay No Tax – Privy Council Decision | Rainey Collins Lawyers

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Crown Forestry Rental Trust To Pay No Tax – Privy Council Decision

By Peter Johnston, Tuesday, 16 March, 2004, Treaty

The Privy Council has found that the Crown Forestry Rental Trust is exempt from paying income tax on its income.

The Privy Council examined the Trust Deed establishing the CFRT and found that the Trust was not charitable but the income generated by the Trust that was not distributed by the Trust for Maori claimants was kept by the Crown and, therefore was exempt from income tax.

What This Means for Claimants?

As a result of this decision, substantial funds that the Trust had to hold in case it was ruled by the Privy Council that income tax had to be paid can now be distributed to claimants to aid in the preparation of their claims before the Waitangi Tribunal and in their direct negotiations with the Crown for the settlement of their historical Treaty grievances.

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