The document provides an overview of a presentation on the taxability of trusts, both domestic and international. It discusses:
- The concept of trusts under Indian law and their various purposes.
- How trusts can be used for estate planning and their advantages over wills.
- The taxation of onshore and offshore trusts under domestic tax laws and international tax issues. Factors like the residential status and location of assets, trustees and beneficiaries determine the jurisdiction of taxation.
- Key provisions of the Indian Income Tax Act regarding the taxation of public charitable trusts and private trusts, including when trust income is taxed at the maximum marginal rate or in the hands of the trustees/beneficiaries.
- Case studies
Taxation of Charitable Trust. Article was published in the Chamber's Journal of June '16. It analyses various provisions of income-tax appliable to NPO /NGO ?Charitable Trust
To know the need for registration of trust under the Income Tax Act, 1961. To understand the procedure for registration of trust and to analyse Form 10A (Application for registration). To know the procedure for 80G registration by trusts and to analyse Form 10G (Application for grant of Approval under 80G). Further, the webinar shall touch upon caveats to be kept in mind while filing the Forms.
“People who have offshore assets will now nd it very difcult to hide investments and corresponding income from eyes of governments of both countries.
Asia Counsel Insights provide readers a punchy update on legal and business developments in Vietnam.
In this edition, we provide a summary of changes to the hiring of foreign labour; new securities law sanctions and regulations; new regulations on the issuance of corporate bonds.
Taxation of Charitable Trust. Article was published in the Chamber's Journal of June '16. It analyses various provisions of income-tax appliable to NPO /NGO ?Charitable Trust
To know the need for registration of trust under the Income Tax Act, 1961. To understand the procedure for registration of trust and to analyse Form 10A (Application for registration). To know the procedure for 80G registration by trusts and to analyse Form 10G (Application for grant of Approval under 80G). Further, the webinar shall touch upon caveats to be kept in mind while filing the Forms.
“People who have offshore assets will now nd it very difcult to hide investments and corresponding income from eyes of governments of both countries.
Asia Counsel Insights provide readers a punchy update on legal and business developments in Vietnam.
In this edition, we provide a summary of changes to the hiring of foreign labour; new securities law sanctions and regulations; new regulations on the issuance of corporate bonds.
Fill Out Your Paycheck Protection Program Loan Application. Provided by Business Developer App. We also have provided the instructions and overview of the loan on our account. Please take a look at our list of banks accepting PPP loans. https:
Sebi (lodr) regulations obligations on listing of id rs & securitised de...DVSResearchFoundatio
Key Takeaways:
Equitable treatment to IDR holders
Terms / Structure of IDRs
Information to stock exchange / investors
Terms of Securitised Debt Instruments
Objectives & Agenda :
Fund raising efforts of enterprises are supported both by equity and debt market. Issuance of debentures is considered as an additional avenue by corporate to meet the funding requirements. Public issue of debentures are debt instruments issued by companies to public as a means of raising funds by borrowing money from public. In this webinar, we shall understand the aspects of public issue of debentures, types of debentures, statutory provisions under Companies Act, 2013, compliance aspects and judicial precedents.
Objectives & Agenda :
One of the charitable forms of organisation is Trust. It is generally formed for the benefit of public at large (public charitable trusts) or for a specified group of persons (private trusts). Formation of trusts is governed by different legislations and involves various registrations under several Acts. The webinar dwells upon the aspects of formation of trust under relevant legislations, various types of trusts, registration of trusts, taxation of trusts and other relevant aspects of management of trust.
Stark Networks HK
Advisory and Consulting for Property Investment Technology Projects
Sustainability * Energy Efficiency
Stark Networks HK :: Advisory and Business Consultancy
Structured Financing in conjunction with Energy :: Working with Corporations in Project Partnerships
Deposits under companies act 2013 version 4.0CA. Pramod Jain
Pursuant to various amendments in Companies (Acceptance of Deposit) Rules 2014, Companies (Amendment) Act, 2017, exemption notification for private companies and its further amendment, the document Deposits under Companies Act 2013 has been updated as Version 4.0. The same is now available at http://expertspanel.in/?qa=blob&qa_blobid=4472136813423102736 . I hope the same is of use.
Kindly share this with other professionals too, as it may be of use to them too.
Warm Regards
CA. Pramod Jain
New Procedure for Registration of Trusts and NGOsTaxmann
Taxmann’s webinar on New Procedure for Registration of Trusts and NGOs
In this Webinar, the speakers have analysed the new procedure, forms and rules for registration & approval of NGOs w.e.f. 01-04-2021 under the Income-tax Act.
Coverage of the webinar:
• Legal Provisions for registration & approval
• Issues in provisional registration and renewal of registration
• Status of registration applications pending on 01-04-2021
• Discussion on new forms and rules for registration
• Guide to apply for registration
• Powers of PCIT or CIT while examining the registration application
• Filing of Statement of donations and issuing certificate of donations
• Controversial Issues arising out of new rules
• QnA Session
OBJECTIVE
Honourable Finance Minister Nirmala Sitharaman, in the Speech of Budget 2020-21, proposed to introduce The Direct Tax Vivad se Vishwas Act, 2020 for
dispute resolution related to direct taxes. Similar scheme known as the 'Sabka Vishwas' was introduced in 2019 for dispute resolution under Legacy Indirect Taxes. The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in the parliament on 5th February, 2020. In this webinar, we shall under the provisions of the Bill and the Rationale for its Introduction.
In the attached handbook, we have included major legal compliance applicable on NGOs in India under Income Tax Act, Foreign Contribution Regulation Act, Payment of Gratuity Act, Provident Fund & Misc Provisions Act. #ngos #Taxation #Compliances #SNR #krestonsnr
IndiaJournal: India in focus as IRS widens its range for targeting offshore ...Nair and Co.
The waves created last year when the U.S. Department of Justice targeted Swiss banking giant UBS for helping individuals evade American taxes with offshore accounts has rippled onto the shores of India. Early this summer, it was reported the Justice department and the Internal Revenue Service turned their eyes toward the subcontinent with letters to HSBC Holdings Plc clients suspected of failing to disclose offshore bank accounts in India.
Financial Service Providers Register (FSPR) presentation for the Business Update 2010 Seminar Series - New Services for a New Decade.
An introduction to the FSPR and AFA regimes including who will administer them, registration and authorisation requirements, how to register on the FSPR and the process to become an Authorised Financial Adviser (AFA).
Fill Out Your Paycheck Protection Program Loan Application. Provided by Business Developer App. We also have provided the instructions and overview of the loan on our account. Please take a look at our list of banks accepting PPP loans. https:
Sebi (lodr) regulations obligations on listing of id rs & securitised de...DVSResearchFoundatio
Key Takeaways:
Equitable treatment to IDR holders
Terms / Structure of IDRs
Information to stock exchange / investors
Terms of Securitised Debt Instruments
Objectives & Agenda :
Fund raising efforts of enterprises are supported both by equity and debt market. Issuance of debentures is considered as an additional avenue by corporate to meet the funding requirements. Public issue of debentures are debt instruments issued by companies to public as a means of raising funds by borrowing money from public. In this webinar, we shall understand the aspects of public issue of debentures, types of debentures, statutory provisions under Companies Act, 2013, compliance aspects and judicial precedents.
Objectives & Agenda :
One of the charitable forms of organisation is Trust. It is generally formed for the benefit of public at large (public charitable trusts) or for a specified group of persons (private trusts). Formation of trusts is governed by different legislations and involves various registrations under several Acts. The webinar dwells upon the aspects of formation of trust under relevant legislations, various types of trusts, registration of trusts, taxation of trusts and other relevant aspects of management of trust.
Stark Networks HK
Advisory and Consulting for Property Investment Technology Projects
Sustainability * Energy Efficiency
Stark Networks HK :: Advisory and Business Consultancy
Structured Financing in conjunction with Energy :: Working with Corporations in Project Partnerships
Deposits under companies act 2013 version 4.0CA. Pramod Jain
Pursuant to various amendments in Companies (Acceptance of Deposit) Rules 2014, Companies (Amendment) Act, 2017, exemption notification for private companies and its further amendment, the document Deposits under Companies Act 2013 has been updated as Version 4.0. The same is now available at http://expertspanel.in/?qa=blob&qa_blobid=4472136813423102736 . I hope the same is of use.
Kindly share this with other professionals too, as it may be of use to them too.
Warm Regards
CA. Pramod Jain
New Procedure for Registration of Trusts and NGOsTaxmann
Taxmann’s webinar on New Procedure for Registration of Trusts and NGOs
In this Webinar, the speakers have analysed the new procedure, forms and rules for registration & approval of NGOs w.e.f. 01-04-2021 under the Income-tax Act.
Coverage of the webinar:
• Legal Provisions for registration & approval
• Issues in provisional registration and renewal of registration
• Status of registration applications pending on 01-04-2021
• Discussion on new forms and rules for registration
• Guide to apply for registration
• Powers of PCIT or CIT while examining the registration application
• Filing of Statement of donations and issuing certificate of donations
• Controversial Issues arising out of new rules
• QnA Session
OBJECTIVE
Honourable Finance Minister Nirmala Sitharaman, in the Speech of Budget 2020-21, proposed to introduce The Direct Tax Vivad se Vishwas Act, 2020 for
dispute resolution related to direct taxes. Similar scheme known as the 'Sabka Vishwas' was introduced in 2019 for dispute resolution under Legacy Indirect Taxes. The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in the parliament on 5th February, 2020. In this webinar, we shall under the provisions of the Bill and the Rationale for its Introduction.
In the attached handbook, we have included major legal compliance applicable on NGOs in India under Income Tax Act, Foreign Contribution Regulation Act, Payment of Gratuity Act, Provident Fund & Misc Provisions Act. #ngos #Taxation #Compliances #SNR #krestonsnr
IndiaJournal: India in focus as IRS widens its range for targeting offshore ...Nair and Co.
The waves created last year when the U.S. Department of Justice targeted Swiss banking giant UBS for helping individuals evade American taxes with offshore accounts has rippled onto the shores of India. Early this summer, it was reported the Justice department and the Internal Revenue Service turned their eyes toward the subcontinent with letters to HSBC Holdings Plc clients suspected of failing to disclose offshore bank accounts in India.
Financial Service Providers Register (FSPR) presentation for the Business Update 2010 Seminar Series - New Services for a New Decade.
An introduction to the FSPR and AFA regimes including who will administer them, registration and authorisation requirements, how to register on the FSPR and the process to become an Authorised Financial Adviser (AFA).
This presentation provides start up managers with an overview of the fund formation process and details many of the hedge fund laws and regulations. A full voice-over of this presentation can be found at www.hedgefundlawblog.com.
Disaster relief puerto rico employee retention credit final 6-21-2018Debera Salam, CPP
View here the slides from the Ernst & Young LLP webcast on June 21, 2018 where details were provided concerning the new disaster relief employee retention tax credit available to Puerto Rico businesses for the 2017 hurriances.
Sharon Daly, head of the Commercial Litigation Insurance team at Matheson, wrote the Ireland chapter for Getting The Deal Through: Litigation Funding 2017.
Investment Fund placing ownership positions in tax credited real estate projects. This entity will empower development to more effectively execute on the actionable opportunities it has incubated with its strategic partners.
Formal introduction to The Opportunity Zone program provides three primary tax benefits for investing
unrealized capital gains.
Filing income tax returns (ITR) is responsibility for individuals and businesses alike. This process ensures compliance with the tax laws of a country. It helps individuals report their income, deductions, and tax liabilities accurately. Filing ITR holds significant importance in terms of legal obligations and financial transparency. By fulfilling legal obligations and promoting financial transparency, filing ITR strengthens the tax system, ensures fair taxation, and contributes to the overall economic well-being of a country.
Boris Desancic is on the team of advisors at Clear Creek Financial Management in Silverdale, WA. Boris Desancic has been working for 22 years. Their current role is with Clear Creek Financial Management and they have previously worked for PCG Wealth Advisors, Rental Property, Various Insurance Carriers FOR W R Insurance Agencies and Waddell Reed . Boris Desancic has previously passed the Series 63 and Series 65 examinations, and is registered to provide investment advice in Washington. Boris Desancic may also provide advisory services in other states under an applicable state exemption from registration or notice filing.
BoyarMiller Breakfast Forum: The Energy Industry 2016 – Looking ForwardBoyarMiller
As part of its ongoing Breakfast Forum series, BoyarMiller gathered industry experts for a discussion on the energy industry.
Speakers included David A. Pursell with Tudor, Pickering, Holt & Co., Matthew G. Pilon with Simmons & Company International and Robert A. Dye, Ph.D. with Comerica Bank.
Similar to Taxability of Trusts CTC Webinar 07-03-2018 (20)
CROSS-BORDER TAXATION OF ESTATES
Indian Property held by Foreigners / UK Residents
UK Property held by Foreigners / Indian Residents
Indian Property held by Foreigners / US Residents
US Property held by Foreigners / Indian Residents
Tools of Tax efficiency
Inheritance Tax Treaties
CHAMBER OF TAX CONSULTANTS
WORKSHOP ON FOREIGN REMITTANCE
Expatriate Taxation-Inbound and Out bound Deputation
Expatriate Meaning
Residential Status under ITA & DTAA & Issues related thereto
Taxability of Remuneration under ITA –
S 5(ii), S 9, S 15 to 17, Article 15 of DTAA
Issues pertaining to Inbound Expat
Issues pertaining to Outbound Expat
Taxation of Non Residents
Need & the Rationale
Residential Status under Income Tax Act, 1961 (ITA) & Foreign Exchange Management Act, 1999 (FEMA)
Non Resident Taxation
Scope of Total Income & Computation of Income
Filing of Return of Income
Exemptions to non-residents
Wealth Tax & Gift Tax
Minimum Alternate Tax for foreign company
Tax Deduction at Source
Section 195, 197 & 206AA
Tax Residency Certificate
Form 15CA/CB
NAVI MUMBAI BRANCH OF WIRC OF ICAI
ICAI Intensive Course on International Taxation
Presentation on Understanding tax treaties & credit for double tax including underlying tax credit
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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Sports events - Golf competitions/billiards competitions/company sports events: dynamic and challenging
⭐ 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐝 𝐩𝐫𝐨𝐣𝐞𝐜𝐭𝐬:
➢ 2024 BAEKHYUN [Lonsdaleite] IN HO CHI MINH
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➢CHILDREN ART EXHIBITION 2024: BEYOND BARRIERS
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
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What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
1. 7th March 2018 P. P. Shah & Associates 1
Taxability of Trust – Domestic and
International Tax Issues
Presented by:
Mr. Paresh P. Shah
P.P. Shah & Associates
Chartered Accountants
Email: ppshahandassociates@gmail.com
CHAMBER OF TAX CONSULTANTS
Webinar on Taxation of Private Trusts/ family
trusts, and Estate planning with the help of
private trusts
2. 7th March 2018 P. P. Shah & Associates 2
Overview of Presentation
Concept of Trust – Types & Purposes
Application and uses of trust for Estate Planning
Trust & Taxation: Onshore & Offshore
Connecting factors and events for taxation (Domestic
& International)
Taxation of Onshore & Offshore Trust
Taxation of Trust under ITA, 1961
Case Study – Onshore Trust
Case Study – Offshore Trust under various scenarios
Anti avoidance provisions
Trust & Treaty
Conclusion - Issues
3. 7th March 2018 P. P. Shah & Associates 3
Concept of Trust
Definition of Trust
Trust is an equitable obligation binding a person to
deal with property over which he has control for the
benefits of the persons of whom he may himself be
one and any one of whom may enforce the
obligation.
Briefly this led to the concept of “Equity’s interference
with common law rights in pursuit of justice”
As per Indian Trust Act, 1882; A Trust is an obligation
annexed to the ownership of property, and arising out
of a confidence reposed in and accepted by the
owner, or declared and accepted by him, for the
benefit of another, or of another & the owner.
4. 7th March 2018 P. P. Shah & Associates 4
Purposes of Trust
Evolution of Trust
Use of Assets vs. Transfer of Assets
Protection of Purposes
Succession Planning
Ownership succession
Venture Capital Fund
Private Equity
Special Purposes
Wealth Management
Taxation
Types of Trust is a consequence of above purposes
5. 7th March 2018 P. P. Shah & Associates 5
Use of Trust for Estate Planning
Advantages in Succession Planning and Asset Distribution
through Trusts:
Efficient mode of managing and passing the family assets as it
helps create a legal framework for the family assets
Bypasses the Probate process which is susceptible to frivolous
claims and delays in court process
safe-guards interests of family members including maintenance
of members with special needs/disabilities
Possible to attach conditions to gifts such as on attaining a
particular age or fulfillment of the settlor’s wishes
Avoids family disputes over the property
6. 7th March 2018 P. P. Shah & Associates 6
Use of Trust for Estate Planning
(con’t)
Other Advantages of Trusts:
Trust can serve as protection in case of a bankruptcy by
protecting assets from creditor’s (actual and potential) claims,
provided the assets have been transferred two years prior to the
bankruptcy being declared
Settlor can direct the managing and advisory committees, to
monitor and advise the trustees on application and management
of the trust assets there by enabling a relatively large pool of
assets/ investments to be managed under one umbrella
Trust can help exploiting offshore business opportunities,
acquisition of interests and cross-border movement of family
members
7. 7th March 2018 P. P. Shah & Associates 7
Trust VS Will for Estate Planning
Revocable Living
Trusts
Wills
Name beneficiaries for property X X
Leave property to young children X X
Revise your document X X
Avoid probate X
Keep privacy after death X
Requires a notary public X
Requires transfer of property X
Protection from court challenges X
Avoid a conservatorship X
Name guardians for children X
Name property managers for children’s property X
Name an executor X
Instruct how taxes and debts should be paid X
Simple to make X
Requires witnesses X
Reduce estate taxes - -
8. 7th March 2018 P. P. Shah & Associates 8
Types of Trust
Implied Express
Constructiv
e
Resulting Executed Executory
Revocable Irrevocable
Discretionary
.
Non
Discretionary
9. 7th March 2018 P. P. Shah & Associates 9
Types of Trust
Fixed Employee
Benefit
Asset
Protection
Accumulation &
Maintenance
Life
Interest
Hybrid Bare Star Charitable
10. 7th March 2018 P. P. Shah & Associates 10
Trust, A Typical Structure
Settlor/Grantor
Trust
Trust Assets
Beneficiary/ies
Protector
Prescribes the objective of trust
& its conditions, functions of
trustee, Protector/s & appoints
beneficiary/ies
Trustee/s controls the assets
A guide to
the Trustee
11. 7th March 2018 P. P. Shah & Associates 11
Trust, A Typical Structure
Dual Ownership
Legal Ownership decides control, management &
possession
Beneficial Ownership involves benefit, use &
enjoyment of asset
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Taxation of Trust
Onshore Trust
Offshore Trust
Selection as to type of trust is normally decided on
the basis of purpose to which it is put and jurisdiction
is decided on the basis of taxation and purposes
Domestic Tax Laws
International Tax issues
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Taxation of Trusts-Onshore & Offshore
Onshore Trust
Normally situated in tax neutral / High tax jurisdiction
Settlor normally a non resident, can be resident also
Normally Non resident beneficiary/ies and could be
resident also
Offshore Trust
A word “offshore” indicates “off the shore”, outside
the place.
Normally a jurisdiction with low tax or no tax
Formed by Non Resident settlor and Non resident
beneficiary/ies
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Selection of Trust - Criterions
General purpose or Special purpose
Jurisdiction offering the ease to accomplish the
General purpose or Special purpose may be
surveyed for concluding the place of formation of the
Trust
Taxation
Domestic Tax system/factors
International Factors
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Basis of taxation - Domestic Tax System
Generally under Domestic tax laws, basis could be
one of the following
Entity level taxation - Trust itself is taxed on its
income and beneficiary is either exempt from taxation
or credit of taxes are given to the beneficiary/ies
Beneficiaries are only taxed, and trust is not taxed
Beneficiaries pay taxes on the distributed amount
and Trust pays on the undistributed amount of
income
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Domestic Tax System
Jurisdiction of Taxation for a trust
Normally, where Trust is treated as “Resident” under
the tax law of the State /system
Residential Status
Place of management/Administration
Place where settlor is Resident
Place where beneficiary/ies are Resident
Location of the Assets
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Cross Border / International issues
System of civil law or common law operating in the
jurisdiction
Pass through approach
Who can be regarded as taxpayer, trustee or
beneficiary, Article 3(1)(a) and Article 4(3) of the DTC
Maximum tax rate for income of trust, particularly for
Discretionary Trust
Characterisation of distribution to beneficiaries and that
of income of the trust
Who can be regarded as beneficiary under article 10,
11, 12 and 23 of the DTC
Who can be considered as alienator under article 13 of
the DTC
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Cross Border Taxation of Trust
S1 T1 B1
S2 T2 B2
S3 T3 B3
In above chart
S: Location of Assets
T: Location of Trustee
B: Location of Beneficiary
No OECD guidance on the subject
19. Attribution of income to a “Person”
Person to whom income is attributed
DTA benefits to Person who is taxpayer and
Resident
Income attribution – Different in Source State
and Resident State: Trustee v/s Beneficiary.
Trustee pays the tax
Special rules in the DTA to incorporate
conflict of attribution
7th March 2018 P. P. Shah & Associates 19
20. Australia- Papua New Guinea DTA
A Resident of one of the Contracting States is
beneficially or presently entitled directly or
indirectly to a share of a business profits of
an enterprise carried on in the other
Contracting State by a trustee of a trust
estate and Trustee has a PE under Article 5
in that other State, in such a case Resident
beneficiary is deemed to be carrying on
business in the Other State through the PE
and its share of profits is attributed to that PE
7th March 2018 P. P. Shah & Associates 20
21. 7th March 2018 P. P. Shah & Associates 21
Trust under Income Tax Act, 1961
Public Charitable Trust
Private Trust
Trust vs AOP [(1960) 39ITR546 (SC) CIT vs Indira Balkrishna]
followed consistently
Relevant Provisions
Section 2(15)
Defines a charitable objective
Section 10(23C)
Provides exemption to educational, medical, charitable and
public religious institutions, existing not for the purposes of
profit
Section 11-13
Provides for tax treatment in case of charitable trusts
Section 60-63
Revocable Trust
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Trust under Income Tax Act, 1961
Relevant Provisions (con’t)
Section 139(1) & (4A) to 139(4F), 139(5) to 139(8)
Tax Return
Section 139A(1)(i) & (iii)
PAN Number
Section 140-140A
Self-assessment Tax
Section 160-167
Deals with liability in special cases i.e. of representative
assessee, which includes taxation of private discretionary
trusts.
Section 167B
Taxation of AOP
23. 7th March 2018 P. P. Shah & Associates 23
Trust under ITA,1961
Cont’d…
Residential Status
S.6(2) A Hindu undivided family, firm or other
association of persons is said to be resident in
India in any previous year in every case except
where during that year the control and
management of its affairs is situated wholly outside
India.
S.6(4) Every other person is said to be resident in India
in any previous year in every case, except where
during that year the control and management of
his affairs is situated wholly outside India.
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Taxability of Public Trust - ITA
Section Nature of income Extent to which exemption allowed
11(1)(a) Income derived from property held under trust
wholly for charitable or religious purposes
To the extent income is applied to such
charitable or religious purposes in India.
Whereas such income is accumulated or
set apart for such application, to the extent
of 15% of the income from such property.
11(1)(c) Income derived from property held under trust
for a charitable purpose, which tends to
promote international welfare in which India is
interested
To the extent income is applied to such
charitable or religious purposes outside
India.
Exemption is available only if the Board
has directed such exemption.
11(1)(d) Income in the form of voluntary contributions
made with a specific direction that they shall
form part of the corpus of the trust or
institution.
100% exemption.
In computing the 15% of the income which may be accumulated or set apart, any such voluntary
contributions as are referred to in Section 12 shall be deemed to be part of the income.
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Taxability of Public Trust - ITA
Section Nature & extent of income not exempt under Section11
13(1)(a) Income of private religious trust not used for public benefit.
13(1)(b) Income of charitable trust created for benefit for particular religious community.
13(1)(c) Income/ property of charitable or religious trust applied for direct or indirect benefit of person
referred in 13(3)
13(1)(d) Any income, is taxable if
If any funds are invested other than in 11(5)
Any funds invested earlier than 1983 remain invested thereafter
Shares and company are held after 1983.
11(4A) Income from business which is not incidental to the attainment of the objectives of the trust,
or in respect of which separate books of accounts have not been maintained.
12(2) Value of medial/ education services provided to specified persons by trust running hospital
and educational institution shall be income of trust and will be chargeable in the year in
which services are provided and chargeable to tax, despite section 11(1).
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Taxability of Public Trust - ITA
Sources of Income Under
Section
Tax
Rates
Voluntary Contributions (being corpus donations) 11(1)(d) Exempt
Income not applied / accumulated to the extent > 15% 11(1)(a) AOP
Rate
Income received on 31st
March carried forward to next year for
utilization but not utilized in that next year [Explanation 2(b) to
Section 11(1)(d)]
11( 1B) AOP
Rate
Income accumulated u/s 11(2) is not invested / utilized / donated
to another trust
11(3) AOP
Rate
Excess Business Income as assessed by the AO 11(4) AOP
Rate
Income derived u/s 13(1)(a) & 13(1)(b) AOP
Rate
Income derived u/s 13(1)(c) & 13 (1)(d) – Specified Persons MMR
Anonymous Donations u/s 115BBC 30%
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Taxability of Private Trust - ITA
Taxability of Private trusts
Shares of beneficiaries are determinate [Section 161] Shares of beneficiaries are indeterminate [Section 164(1)]
Where income does not
include business profits
Where income does not
include business profits**
Where income
includes business profits
Where income
includes business profits
The trustee is assessable
at the rates applicable
to each beneficiary
The whole of the income
of the trust is taxable at
Maximum Marginal Rate
The whole of the income
of the trust is taxable at
Maximum Marginal Rate
The income of the trust is
Taxable in the hands of
trustees at the rates
Applicable to an AOP
** Note: Subject to conditions as specified in the following slides
Threshold available to
each beneficiary Impact on threshold
deduction
28. 7th March 2018 P. P. Shah & Associates 28
Taxability of Private Trust - ITA
Where shares of beneficiaries are determinate or known (Sec.161)
Where income does not include business profits [Sec.161(1)]
The trustee is assessable at the rates applicable to each
beneficiary.
Where income includes profits from business [Sec.161(1A)]
The whole of the income of the trust is taxable at maximum
marginal rate.
However, if such profits from business are receivable under a trust
declared by any person by ‘will’ exclusively for the benefit of any
relative, dependant on him for support and maintenance and such
trust is the only trust so declared by him, then, the trustees shall
be assessable at the rates applicable to each beneficiary.
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Taxability of Private Trust - ITA
Where shares of beneficiaries are indeterminate or unknown i.e. in case of
discretionary trust [Section 164(1)]
Where income does not include profits from any business and if:
None of the beneficiaries has taxable income exceeding maximum amount
not chargeable to tax or is a beneficiary in any other trust; or
The income is receivable under a trust declared by any person by will and
such trust is the only trust so declared by him; or
The income is receivable under a non testamentary trust created before
1.03.1970 exclusively for the benefit of relatives of settlor, or member of
HUF, who are mainly dependant upon settlor; or
The income is receivable by trustees on behalf of a provident fund,
superannuation fund, gratuity fund, pension fund or any other bona fide
fund created by the employer carrying on business or profession for the
benefit of his employees,
Then, income of the trust is taxable in the hands of trustees at the rates
applicable to an AOP. In any other case, income is taxable at the maximum
marginal rate.
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Taxability of Private Trust - ITA
Where shares of beneficiaries are indeterminate or unknown i.e.
in case of discretionary trust [Section 164(1)]
Where income includes business profits:
The whole of the income of the trust is taxable at the maximum
marginal rate.
However, if such profits from business are receivable under a trust
declared by any person by ‘will’ exclusively for the benefit of any
relative, dependant on him for support and maintenance and such
trust is the only trust so declared by him, then, the trustees shall
be assessable only at the rates applicable to an AOP.
Taxation of Charitable / Religious Trust not registered u/s. 12A
[Section 164(2)]:
Income is taxed at a rate applicable to AOP and MMR will not
apply
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Taxability of Private Trust - ITA
Not regarded as transfer
Sec.47 (iii) any transfer of a capital asset under a gift or will or an
irrevocable trust :
Provided that this clause shall not apply to transfer under a gift or an
irrevocable trust of a capital asset being shares, debentures or
warrants allotted by a company directly or indirectly to its employees
under any Employees’ Stock Option Plan or Scheme of the company
offered to such employees in accordance with the guidelines issued
by the Central Government in this behalf
Sec.48
Provided also that where shares, debentures or warrants referred to
in the proviso to clause (iii) of section 47 are transferred under a gift
or an irrevocable trust, the market value on the date of such transfer
shall be deemed to be the full value of consideration received or
accruing as a result of transfer for the purposes of this section
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Anti Avoidance under ITA, 1961
Revocable & irrevocable transfer
Sec.60 Transfer of income where there is no transfer of
assets.
All income arising to any person by virtue of a transfer
whether revocable or not and whether effected before or
after the commencement of this Act shall, where there is
no transfer of the assets from which the income arises, be
chargeable to income-tax as the income of the transferor
and shall be included in his total income.
Sec.61 Revocable transfer of assets.
All income arising to any person by virtue of a revocable
transfer of assets shall be chargeable to income-tax as the
income of the transferor and shall be included in his total
income.
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Anti Avoidance under ITA, 1961
Sec.62 Transfer irrevocable for a specified period.
(1) The provisions of section 61 shall not apply to any income arising to
any person by virtue of a transfer—
(i ) by way of trust which is not revocable during the lifetime of
the beneficiary, and, in the case of any other transfer, which is
not revocable during the lifetime of the transferee ; or
(ii) made before the 1st day of April, 1961, which is not revocable
for a period exceeding six years :
Provided that the transferor derives no direct or indirect benefit from
such income in either case.
(2) Notwithstanding anything contained in sub-section (1), all income
arising to any person by virtue of any such transfer shall be chargeable
to income-tax as the income of the transferor as and when the power to
revoke the transfer arises, and shall then be included in his total
income.
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Anti Avoidance under ITA, 1961
Sec.63 “Transfer” and “revocable transfer” defined.
For the purposes of sections 60, 61 and 62 and of this section,
—
(a) a transfer shall be deemed to be revocable if—
(i) it contains any provision for the re-transfer directly or
indirectly of the whole or any part of the income or assets to
the transferor, or
(ii) it, in any way, gives the transferor a right to re-assume
power directly or indirectly over the whole or any part of
the income or assets ;
(b) “transfer” includes any settlement, trust, covenant,
agreement or arrangement.
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Anti Avoidance under ITA, 1961
Distribution from Trust & S.56(2)
Settlement to Trust & ITA
Application & context of Section 93
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Provision of Section 93 of ITA, 1961
In a case whenever there is a transfer of assets
Leading to the payment of income to the non resident
Leading to acquisition of rights by the assessee which
enables him to enjoy the income of the non resident
Such income would have been chargeable to tax,
had it been the income of the assessee, then
Income shall be deemed to be that of the assessee,
subject to exemption for bonafide transaction to the
satisfaction of the assessing officer
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Case Study I - Offshore Trust & taxation
Background
A Non Resident of India is contemplating setting up
the Discretionary Offshore Trust in Mauritius
Beneficiaries of the Trust are Resident of India, UK
and USA
Trust is also planning to incorporate underlying
GBLC II company for holding investment and
earning regular income.
Although trust is “Resident” under law of Mauritius
its income is exempt in Mauritius because all the
beneficiaries are Non Resident of Mauritius.
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Case Study I
Question
Participants of today’s deliberation are posed with
following question
What is the taxability of the income in the form of
interest, dividend and capital gains from investment
in the GBLC II companies, if the trustees of the Trust
are
a) Resident of Mauritius
b) Resident in UK
c) Resident in India
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Case Study I - Structure
Settlor A Mauritian
Discretionary Trust
Setup under the law
of Mauritius
Beneficiaries Resident
of UK/USA/India
A Non
Resident of
India, UK and
USA GBLC II Company
I1 I2 I3
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Tax Issues in India
Whether Trust will be liable to Tax in India in any of
the alternatives when Trustee is a person Resident
of Mauritius or UK or of India
Taxation of Income in India for Resident beneficiary
when
Income is not distributed
When income is distributed
Taxation of income in India for Non Resident
beneficiaries in above alternatives i.e. in case
variations in trustees residential status vis-à-vis
distribution or when there is no distribution?
In case tax is payable in India by Indian Resident
beneficiary, whether there is any possibility of tax
credit?
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Analysis of Case Study I
Scope of total income Section 5
5 (1) Subject to the provisions of this Act, the total income of
any previous year of a person who is a resident includes all
income from whatever source derived which—
(a) is received or is deemed to be received in India in such
year by or on behalf of such person; or
(b) accrues or arises or is deemed to accrue or arise to him
in India during such year; or
(c) accrues or arises to him outside India during such year:
Provided that, in the case of a person not ordinarily
resident in India within the meaning of sub-section (6) of
section 6, the income which accrues or arises to him outside
India shall not be so included unless it is derived from a
business controlled in or a profession set up in India.
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Analysis of Case Study I
S. 5 (2) Subject to the provisions of this Act, the total income of
any previous year of a person who is a non-resident includes all
income from whatever source derived which—
(a) is received or is deemed to be received in India in such
year by or on behalf of such person ; or
(b) accrues or arises or is deemed to accrue or arise to him
in India during such year.
Explanation 1.—Income accruing or arising outside India shall not
be deemed to be received in India within the meaning of this
section by reason only of the fact that it is taken into account in a
balance sheet prepared in India.
Explanation 2.—For the removal of doubts, it is hereby declared
that income which has been included in the total income of a
person on the basis that it has accrued or arisen or is deemed to
have accrued or arisen to him shall not again be so included on
the basis that it is received or deemed to be received by him in
India.
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Analysis of Case Study I -
Representative Assessee
Section 160(1)(iv): A meaning of “Representative
Assessee”
in respect of income which a trustee appointed under
a trust declared by a duly executed instrument in
writing whether testamentary or otherwise [including
any wakf deed which is valid under the Mussalman
Wakf Validating Act, 1913 (6 of 1913),] receives or is
entitled to receive on behalf or for the benefit of any
person, such trustee or trustees;
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Analysis of Case Study I -
Representative Assessee
Section 161(1): Liability of representative assessee
Every representative assessee, as regards the income in
respect of which he is a representative assessee, shall be
subject to the same duties, responsibilities and liabilities as if
the income were income received by or accruing to or in favour
of him beneficially, and shall be liable to assessment in his own
name in respect of that income; but any such assessment shall
be deemed to be made upon him in his representative capacity
only, and the tax shall, subject to the other provisions contained
in this Chapter, be levied upon and recovered from him in like
manner and to the same extent as it would be leviable upon and
recoverable from the person represented by him.
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Analysis of Case Study I -
Representative Assessee
Section 164(1): Charging provision in case shares of beneficiaries
are not known
Subject to the provisions of sub-sections (2) and (3), where any
income in respect of which the persons mentioned in clauses (iii)
and (iv) of sub-section (1) of section 160 are liable as
representative assessees or any part thereof is not specifically
receivable on behalf or for the benefit of any one person or where
the individual shares of the persons on whose behalf or for whose
benefit such income or such part thereof is receivable are
indeterminate or unknown (such income, such part of the income
and such persons being hereafter in this section referred to as
“relevant income”, “part of relevant income” and “beneficiaries”,
respectively), tax shall be charged on the relevant income or part
of relevant income at the maximum marginal rate
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Analysis of Case Study I
Who could be taxed in India?
Beneficiaries or the trustees as representative of
beneficiaries?
S.164(1) vis-à-vis 166
(1994) 269 ITR 101 (SC) in case of Kamalini Khatau’s case
decides as to when either of them can be assessed to tax in
India?
Consider scope of total Income u/s 5 for Indian Resident as
well as non Resident beneficiaries, in the background of
Sec.160(1)(iv)…A representative assessee.
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In a case when Trustee is Resident
of India
Trustee as representative assessee is liable to tax if
income is received by him or entitle to receive on
behalf of the beneficiaries
Computation of Income for which tax is payable, is
the aggregate of Income of the beneficiary/ies under
the trust [Refer 81 ITR 310 (SC), 126 ITR 233 (AP)]
No distribution is made to any of the beneficiary
either in UK or in USA or in India
What is the liability for Trustee as representative
assessee?
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The test to be applied
If scope of total income does not cover the income of
the beneficiaries who are non-resident or resident,
whether income can still be chargeable to tax in the
hands of resident or non-resident trustee u/s 164(1).
How to compute?
Difficult to quantify
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Case Study I - Conclusion
Taxation of Trust in India
a) When Trustee is Resident in Mauritius - No
b) When Trustee is Resident in UK - No
c) When Trustee is Resident in India - Quantification
fails
Taxation of Indian beneficiaries in a case when there
is no distribution
a) No
b) No
c) Computation fails.
In case of distribution, Indian beneficiary are liable to
taxation in all three cases
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Case Study I - Conclusion
Taxability for Non Resident beneficiary/ies
a) When there is no distribution
UK Resident beneficiary / US Resident beneficiary not liable
to tax unless it is received in India (S. 5 of the ITA)
b) In case of distribution
Not liable to taxable in India (S. 5 of the ITA)
India-UK DTAA / India US Tax treaty. Not liable to taxation
unless assets are located in India subject to
Characterisation of income from such Assets
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Case Study I - Conclusion
Taxability of Indian beneficiary in UK/USA. Normally
“No”, subject to UK/USA domestic tax law.
Tax Credit Issues
Tax paid by discretionary Trust outside India is the
taxes on the Income of the Trust
ITA-Computation is for income of beneficiary, can taxes paid
by Trust be available as Credit?
Whether unilateral relief under ITA is available only in
absence of tax treaty?
Provisions of Sec.93 of the ITA Act
What happens to the settlement by a non resident, in case
he receives/enjoy the income after he becomes resident?
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Conclusion & issues
Key consideration
Is Trust a person ?
Trust and Article 4(1) of the Treaty
Beneficial owner under Article 10, 11 and 12
Alienator under Article 13
PE & Trust
Trust & FEMA
Computation under ITA
Characterisation of income or it be treated as other
income
OECD Guidance
Commentary by leading Author/s
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Recent trends affecting Offshore
Trusts
Renewed vigor internationally towards information exchange
G20 declaration in London, April, 2009:
“to take action against non-cooperative jurisdictions, including tax
havens. We stand ready to deploy sanctions to protect our public
finances and financial systems. The era of banking secrecy is over”
Indian Govt. taking major steps to trace black money stashed overseas
Movement towards increased transparency that started in 2000 now
gaining traction
India is Vice-Chair of peer review group of
The Global Forum on Transparency and Exchange of Information
for Tax purposes, and
Financial Action Task Force
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Recent trends affecting Offshore
Trusts (con’t)
Dedicated computerized cell for exchange of information being
created in CBDT’s Foreign Tax and Tax Research (FT & TR)
Division
Role of FT & TR Division:
All policy issues relating to International Taxation and
Transfer Pricing
Negotiations of DTAAs, TIEAs and Multilateral Conventions
Mutual Agreement Procedure (MAP)
Exchange of Information – Inbound and Outbound
Building international consensus for effective administrative
assistance in tax matters in Global Forum on Transparency
and Exchange of Information for Tax purposes, G20, OECD,
UN etc.
Issues related to Black Money
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Recent trends affecting Offshore
Trusts (con’t)
India is renegotiating its existing DTAAs, with special
focus on having clauses for exchange of banking
information either by way of protocols to existing DTAAs
or new DTAAs
In the beginning of 2009, 78 DTAAs; now 88 are signed
with 85 in force
In 3 DTAAs Article 26 was as per International Standards
Renegotiation started in other 75 DTAAs
Negotiation finalized in 26 cases
7 signed, 4 entered into force
Negotiation of 19 new DTAAs
New DTAAs – Article 26 as per International Standards
9 signed, 4 entered into force
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Recent trends affecting Offshore
Trusts (con’t)
India is also entering into agreements with several tax
havens for exchange of information pertaining to tax
matters (TIEA)
TIEAs with 22 priority jurisdictions
Negotiations completed with 19 countries / jurisdictions
19 TIEAs signed (Argentina, Bahamas, Bahrain,
Belize, Bermuda, British Virgin Islands, Cayman
Islands, Gibraltar, Isle of Man, Jersey, Guernsey,
Liberia, Maldives, MACAO SAR, Liechtenstein,
Monaco, San Marino, Seychelles, Saint Kitts and
Nevis)
New jurisdictions for TIEAs identified
India will have one of the largest networks of DTAAs and
TIEAs
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Recent trends affecting Offshore
Trusts (con’t)
Exchange of Information under DTAAs/TIEAs and
Multilateral Convention
Exchange of Information on request
Spontaneous information exchange
Automatic exchange of information
Industry-wise exchange of information
Simultaneous tax examinations
Tax examination abroad
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Recent trends affecting Offshore
Trusts (con’t) – EOI CELL
Inbound Exchange of Information on request
Enquires conducted by Assessment/Investigation
Wing
Outbound Exchange of Information
Number likely to increase significantly with new
Instruments for EOI and with increased awareness
amongst tax officers
Inbound Automatic Exchange of Information
Information about Indians earning income abroad
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Recent trends affecting Offshore
Trusts (con’t) – EOI CELL
Complete database of in-bound and outbound EOI
Storing and transmitting the data on a secured
platform with competent authorities of other countries
Handling large data received and sent under the
“Automatic Exchange of Information” and use of STF
(Standard Transmission Format) for the automatic
exchange of information - recommended by OECD
Risk analysis of large number of data received
Feedback mechanism
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Salient features of India – Bahamas
TIEA
Scope:
Competent authorities of the Contracting Parties to provide
assistance through exchange of information that is
foreseeably relevant to the administration and
enforcement of the domestic laws of the Contracting
Parties concerning taxes
Jurisdiction:
Information shall be exchanged without regard to whether
the person to whom the information relates is, or whether
the information is held by, a resident of a Contracting
Party
Taxes covered:
All taxes covered, including identical or substantially
similar taxes imposed in future either in addition to or in
place of existing taxes
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Salient features of India – Bahamas
TIEA (con’t)
Person:
includes an individual, a company, a body of persons and
any other entity which is treated as a taxable unit under
the taxation laws in force in the respective Contracting
Parties
Information:
means any fact, statement, document or record in
whatever form
Information gathering measures:
means laws and administrative or judicial procedures that
enable a Contracting Party to obtain and provide the
requested information
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Salient features of India – Bahamas
TIEA (con’t)
Exchange of Information:
Information shall be exchanged without regard to whether
the requested Party needs such information for its own
tax purposes or whether the conduct being investigated
would constitute a crime under the laws of the requested
Party if such conduct occurred in the requested Party
Information, to the extent allowable under its domestic
laws, shall be in the form of depositions of witnesses and
authenticated copies of original records
Competent authority to provide information held by banks,
other financial institutions, and any person, including
nominees and trustees, acting in an agency or fiduciary
capacity
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TIEA (con’t)
Exchange of Information:
Competent authority to provide information regarding the
legal and beneficial ownership of companies,
partnerships, collective investment funds or schemes,
trusts, foundations, including ownership information on all
such persons in an ownership chain
In the case of trusts, information on settlors, trustees and
beneficiaries to be provided
However, no obligation on the Contracting Parties to
obtain or provide ownership information with respect to
publicly traded companies or public collective investment
funds or schemes unless such information can be
obtained without giving rise to disproportionate difficulties
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TIEA (con’t)
When requesting information, Competent authority to
provide, inter alia:
Identity of person(s), period and tax purpose for which
information is sought
Grounds for believing that such information is present in
the requested Party or is in the possession or control of a
person within the jurisdiction of the requested Party
The legal provision under which the examination,
assessment or investigation is carried out, and a
statement that the request is in conformity with the laws
and administrative practices of the requesting Party
A statement that the requesting Party has pursued all
means available in its own territory to obtain the
information, except those that would give rise to
disproportionate difficulties
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If requested party unable to provide information within 90
days, it shall immediately inform the requesting Party,
explaining the reason for its inability, the nature of the
obstacles or the reasons for its refusal
Tax examinations abroad:
The requested Party may allow representatives of the
competent authority of the requesting Party to enter the
territory of the requested Party, to the extent permitted under
its domestic laws, to interview individuals and examine
records with the prior written consent of the individuals or
other persons concerned
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Declining a request for information:
Requested party may decline to assist, inter alia, where
disclosure of the information would be contrary to public
policy of the requested Party
A request for information shall not be refused on the ground
that the tax claim giving rise to the request is disputed
Requested Party shall not be required to obtain and provide
information which the requesting Party would be unable to
obtain in similar circumstances under its own laws
Requested party may decline information which
discriminates against a national of the requested Party as
compared with a national of the applicant Party in the same
circumstances
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Confidentiality:
Any information received by a Contracting Party shall be
treated as confidential and may be disclosed only to persons
or authorities (including courts and administrative bodies) in
the jurisdiction of the Contracting Party concerned with the
assessment, collection or enforcement, prosecution or the
determination of appeals in relation to the taxes covered by
the TIEA
The information may not be disclosed to any other person or
entity or authority or any other jurisdiction (including a
foreign Government) without the express written consent of
the competent authority of the requested Party
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Other regulatory measures – I.T. Act
Section 94-A was inserted into the Income-tax Act,
1961 w.e.f. 1/6/2011, empowering the Government to
notify any territory outside India, having regard to lack
of effective exchange of information, as a notified
jurisdictional area.
Simply put, transactions with residents of territories
not providing crucial information would be subject to
higher more stringent tax and transfer pricing
regulations
This provision was applied by India in past to India –
Cyprus tax treaty which is now restored
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