Comments on: Jersey passes law allowing ‘sham’ trusts for use by tax evaders http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/ Richard Murphy on tax and corporate accountability Tue, 06 Jan 2009 09:09:54 +0000 http://wordpress.org/?v=2.6 By: Andres Berger http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-511653 Andres Berger Tue, 11 Nov 2008 23:41:53 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-511653 New Jersey sure is etting themselves up for alot of fraud cases not only with NJ natives but also people looking to come to NJ just start a company and one of these trusts. New Jersey sure is etting themselves up for alot of fraud cases not only with NJ natives but also people looking to come to NJ just start a company and one of these trusts.

]]> By: A lawyer smells the coffee | called2account http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-502899 A lawyer smells the coffee | called2account Sat, 18 Oct 2008 05:00:15 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-502899 [...] record. It has no idea how many trusts use its domain. It has 0% tax on corporate profits. It has sham trusts created for the sole purpose of facilitating international tax fraud. It allows corporate [...] [...] record. It has no idea how many trusts use its domain. It has 0% tax on corporate profits. It has sham trusts created for the sole purpose of facilitating international tax fraud. It allows corporate [...]

]]> By: Tax Research UK / A lawyer smells the coffee http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-502640 Tax Research UK / A lawyer smells the coffee Fri, 17 Oct 2008 11:09:59 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-502640 [...] record. It has no idea how many trusts use its domain. It has 0% tax on corporate profits. It has sham trusts created for the sole purpose of facilitating international tax fraud. It allows corporate [...] [...] record. It has no idea how many trusts use its domain. It has 0% tax on corporate profits. It has sham trusts created for the sole purpose of facilitating international tax fraud. It allows corporate [...]

]]> By: pbr http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-485789 pbr Sun, 31 Aug 2008 00:47:02 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-485789 If the definition of a trustee is one who holds funds/property in trust for another, it's clear that no trust is created by one holding in his/her own name alone - since it doesn't meet the definition of a trust. To arrange/organize such a trust must therefore be a scam by the creator, i.e., the attorney or guide who allows such a trust to be made and disguised as legal. How scam trusts are made and sold by professionals is a problem of criminal law violation as well as ethics since the funds/property are stolen from the beneficiary in whose name they are held by the owner. If the definition of a trustee is one who holds funds/property in trust for another, it’s clear that no trust is created by one holding in his/her own name alone - since it doesn’t meet the definition of a trust.

To arrange/organize such a trust must therefore be a scam by the creator, i.e., the attorney or guide who allows such a trust to be made and disguised as legal. How scam trusts are made and sold by professionals is a problem of criminal law violation as well as ethics since the funds/property are stolen from the beneficiary in whose name they are held by the owner.

]]> By: Tax Research UK / Jersey: not a ‘civilised society’ http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-475658 Tax Research UK / Jersey: not a ‘civilised society’ Fri, 08 Aug 2008 07:55:35 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-475658 [...] A more pernicious and recent example of this are the sham trusts that Jersey has allowed to operate from its domain since 2006, see here. [...] [...] A more pernicious and recent example of this are the sham trusts that Jersey has allowed to operate from its domain since 2006, see here. [...]

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-443722 Tax Research LLP Mon, 02 Jun 2008 07:55:10 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-443722 Law Training Contract Agreed. You're 100% right. But what you have described means that there has been no gift into trust and the trustees are mere nominees for the settlor. In that case to call this arrangement a trust is to legalise a sham. That is fraud. I suggest the governments who have permitted this arrangement did so knowing that the use of these trusts would be fraudulent. They have no other purpose given that they are intended for use outside the territories that create them where trusts will be assumed to have quite different characteristics. Richard Law Training Contract

Agreed. You’re 100% right.

But what you have described means that there has been no gift into trust and the trustees are mere nominees for the settlor.

In that case to call this arrangement a trust is to legalise a sham. That is fraud.

I suggest the governments who have permitted this arrangement did so knowing that the use of these trusts would be fraudulent. They have no other purpose given that they are intended for use outside the territories that create them where trusts will be assumed to have quite different characteristics.

Richard

]]> By: Law Training Contrac http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-443679 Law Training Contrac Mon, 02 Jun 2008 06:52:22 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-443679 This amendment provides that a settler of a trust may reserve to him or herself certain powers specified in the law, or the grant of a beneficial interest in the trust property, without affecting the validity of the trust or postponing the commencement of the trust. Amongst the powers that a settler may reserve are the power to amend or revoke the trust, to appoint new trustees and to remove trustees, to appoint or remove an investment manager or investment adviser, to give directions to the trustee in connection with the purchase, retention or sale of trust property, to give directions to the trustee for the distribution of trust property and to restrict the exercise by the trustee of some of its powers or discretions. This amendment provides that a settler of a trust may reserve to him or herself certain powers specified in the law, or the grant of a beneficial interest in the trust property, without affecting the validity of the trust or postponing the commencement of the trust. Amongst the powers that a settler may reserve are the power to amend or revoke the trust, to appoint new trustees and to remove trustees, to appoint or remove an investment manager or investment adviser, to give directions to the trustee in connection with the purchase, retention or sale of trust property, to give directions to the trustee for the distribution of trust property and to restrict the exercise by the trustee of some of its powers or discretions.

]]> By: Tax Research UK / The double-headed Hydra http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-425447 Tax Research UK / The double-headed Hydra Wed, 30 Apr 2008 11:08:40 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-425447 [...] a legislature for hire, doing what is asked for them. So, for example, Jersey’s obnoxious Trust Law of 2006 was passed without a vote in the States of Jersey since no one objected, or as far as I can tell [...] [...] a legislature for hire, doing what is asked for them. So, for example, Jersey’s obnoxious Trust Law of 2006 was passed without a vote in the States of Jersey since no one objected, or as far as I can tell [...]

]]> By: Joe Stanley http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-173855 Joe Stanley Fri, 14 Sep 2007 14:31:23 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-173855 Maybe it was just to keep up with Cayman & BVI legislation which had been around for years? I cant see a mention of this Maybe it was just to keep up with Cayman & BVI legislation which had been around for years? I cant see a mention of this

]]> By: Tax Research UK / No time for excuses http://www.taxresearch.org.uk/Blog/2006/06/15/jersey-passes-law-allowing-%e2%80%98sham%e2%80%99-trusts-for-use-by-tax-evaders/#comment-40796 Tax Research UK / No time for excuses Sat, 21 Apr 2007 17:49:09 +0000 http://www.taxresearch.org.uk/Blog/?p=9#comment-40796 [...] The principle actors in writing their financial services legislation are bankers, lawyers and accountants. For example, Jersey’s new Trust Act passed in 2006 which allows the blatant creation of sham trusts that can only be of benefit to tax evaders was presented complete to the parliament, and was nodded through by it without a vote. See this . Who promoted it? The local financial services community, of course. [...] [...] The principle actors in writing their financial services legislation are bankers, lawyers and accountants. For example, Jersey’s new Trust Act passed in 2006 which allows the blatant creation of sham trusts that can only be of benefit to tax evaders was presented complete to the parliament, and was nodded through by it without a vote. See this . Who promoted it? The local financial services community, of course. [...]

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