Beneficial ownership

Beneficial ownership

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My client is a Jersey company wholly owned by a Panamanian discretionary trust. In Jersey Goods and Services tax is assessed on land sales, but on the beneficial owner as opposed to the legal owner. In 1980 the trust was formed and provided funds to set up a company ( for whom the trustees are both shareholders and directors) to own a landholding, which was duly purchased and registered in the company name. In 2009 the company made a series of sales of fields for approx £1 million, and the company is being assessed to tax of approx £50k. The proceeds of sale were all sent direct to the trust's Panamanian bank account by the solicitor acting. I have appealed the assessment, based on the company not being the beneficial owner although it was the legal owner. The tax office has refused the appeal claiming the company is the beneficial owner.

My question to AccountingWEB members is who do you think is right, and, as I plan to take this further, is there any case law or tribunal decisions which would relate to the trust/company ownership structure. your advice would be most welcome.

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