Taxation of Income in Foreign Trusts

Denmark Introduces a New Anti-avoidance Rule Targeting the Use of Foreign Trusts

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

278 Downloads (Pure)

Resumé

Denmark has introduced a new provision that states that Danish settlors of foreign trusts, under certain circumstances, must include the trust’s income in their own taxable income. The provision forms part of the Danish legislator’s recent attempts to prevent international tax evasion/ avoidance, and the underlying aim of the provision is to make the rules concerning foreign trusts easier to administrate and enforce by the Danish tax authorities. Based on an analysis of the provision’s area of application and legal effects, it is concluded that the new provision seems to be effective in mitigating the use of foreign (family) trusts for tax evasion/avoidance purposes. However, it is also concluded that there is reason to question whether the new provision is sufficiently precise and whether the aim could have been reached in a more expedient way
OriginalsprogEngelsk
TidsskriftIntertax
Vol/bind44
Udgave nummer2
Sider (fra-til)185-191
ISSN0165-2826
StatusUdgivet - 2016

Citer dette

@article{0799906699ce4ce1b145640fc52960ac,
title = "Taxation of Income in Foreign Trusts: Denmark Introduces a New Anti-avoidance Rule Targeting the Use of Foreign Trusts",
abstract = "Denmark has introduced a new provision that states that Danish settlors of foreign trusts, under certain circumstances, must include the trust’s income in their own taxable income. The provision forms part of the Danish legislator’s recent attempts to prevent international tax evasion/ avoidance, and the underlying aim of the provision is to make the rules concerning foreign trusts easier to administrate and enforce by the Danish tax authorities. Based on an analysis of the provision’s area of application and legal effects, it is concluded that the new provision seems to be effective in mitigating the use of foreign (family) trusts for tax evasion/avoidance purposes. However, it is also concluded that there is reason to question whether the new provision is sufficiently precise and whether the aim could have been reached in a more expedient way",
author = "Schmidt, {Peter Koerver}",
year = "2016",
language = "English",
volume = "44",
pages = "185--191",
journal = "Intertax",
issn = "0165-2826",
publisher = "Kluwer Law International",
number = "2",

}

Taxation of Income in Foreign Trusts : Denmark Introduces a New Anti-avoidance Rule Targeting the Use of Foreign Trusts. / Schmidt, Peter Koerver.

I: Intertax, Bind 44, Nr. 2, 2016, s. 185-191.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

TY - JOUR

T1 - Taxation of Income in Foreign Trusts

T2 - Denmark Introduces a New Anti-avoidance Rule Targeting the Use of Foreign Trusts

AU - Schmidt, Peter Koerver

PY - 2016

Y1 - 2016

N2 - Denmark has introduced a new provision that states that Danish settlors of foreign trusts, under certain circumstances, must include the trust’s income in their own taxable income. The provision forms part of the Danish legislator’s recent attempts to prevent international tax evasion/ avoidance, and the underlying aim of the provision is to make the rules concerning foreign trusts easier to administrate and enforce by the Danish tax authorities. Based on an analysis of the provision’s area of application and legal effects, it is concluded that the new provision seems to be effective in mitigating the use of foreign (family) trusts for tax evasion/avoidance purposes. However, it is also concluded that there is reason to question whether the new provision is sufficiently precise and whether the aim could have been reached in a more expedient way

AB - Denmark has introduced a new provision that states that Danish settlors of foreign trusts, under certain circumstances, must include the trust’s income in their own taxable income. The provision forms part of the Danish legislator’s recent attempts to prevent international tax evasion/ avoidance, and the underlying aim of the provision is to make the rules concerning foreign trusts easier to administrate and enforce by the Danish tax authorities. Based on an analysis of the provision’s area of application and legal effects, it is concluded that the new provision seems to be effective in mitigating the use of foreign (family) trusts for tax evasion/avoidance purposes. However, it is also concluded that there is reason to question whether the new provision is sufficiently precise and whether the aim could have been reached in a more expedient way

UR - http://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=963017418032&rft.object_portfolio_id=&svc.holdings=yes&svc.fulltext=yes

M3 - Journal article

VL - 44

SP - 185

EP - 191

JO - Intertax

JF - Intertax

SN - 0165-2826

IS - 2

ER -