Tax Information

We did a lot of work in regard to this legislation including taking specialist tax advice and have been advised by IRD that Entrust is not required to collect IRD numbers for the Entrust dividend. This is because Entrust is a trust, not a company, and people who receive the Entrust dividend are not investors. They receive the dividend simply by being a consumer with an electricity retailer. The new legislation applies only to companies and not trusts like Entrust.

That aside, we are aware it would be helpful to Entrust beneficiaries if IRD numbers were provided and IRD could process any tax refunds to individuals where applicable.

Unfortunately this was not feasible because so many of our beneficiaries are paid the dividend under a joint name and the dividend is not split out to each person as IRD requires. Additionally, around 42% of people receiving the Entrust dividend move or change customer details every year. This would have meant significant additional costs would be incurred gathering and matching IRD numbers each year.

RWT means Resident Withholding Tax. When the Entrust dividend is paid, we are required to pay withholding tax on each dividend. Some people and organisations such as charities are approved by the IRD so withholding tax does not have to be taken out of their dividend. If you are registered as RWT-exempt with IRD you need to include your IRD number on the form and return it to us, and your dividend will be paid without withholding tax being deducted.

More information about RWT exemption is available from the IRD at www.ird.govt.nz

If your organisation is exempt from having RWT (Resident Withholding Tax) deducted from your Entrust dividend you must include your IRD number for all the ICPs that are eligible.

To ensure this also applies to your local branches, please send them a copy of your IRD number, and remind them to include it with their details when they send them back to us.