12/19/2023 0 Comments Pandora papers![]() Iv) Prepare for estate duty eventuality: There is pervasive fear that estate duty, which was abolished back in 1985 when Rajiv Gandhi was Prime Minister, will likely be re-introduced soon. In many business families, children have one foot abroad, hence family patriarchs have increasingly looked at trusts to ensure a hassle-free transfer of assets into their children’s hands.Įxpress earlier brought you | Paradise Papers: Biggest data leak reveals trails of India’s corporates in global secret tax havens The ownership of the assets rests with the trust, and the son/ daughter being only a ‘beneficiary’ is not liable to any tax on income from the trust. ![]() Iiii) Avoid tax in the guise of planning: Businesspersons avoid their NRI children being taxed on income from their assets by transferring all the assets to a trust. The exchange of information can take months. The Income-Tax Department in India can get to the ultimate beneficial owners only by requesting information with the financial investigation agency or international tax authority in offshore jurisdictions. Ii) Hunt for enhanced secrecy: Offshore trusts offer enhanced secrecy to businesspersons, given their complex structures. His wealth moved to an offshore trust remains safe from creditors. But the Pandora Papers show the promoter moved tens of millions of dollars in assets to the trust amid police complaints in Delhi by his foreign investors, alleging siphoning off funds to the tune of hundred-plus million dollars. ![]() So do homebuyers who have invested in residential properties by this company. Now, private equity investors drag various entities of the real estate group to the National Company Law Tribunal under the bankruptcy law. This is best illustrated through an example: A real estate promoter sets up an offshore trust, which sits on top of four offshore entities holding some assets. Also Read | Sachin Tendulkar, wife, her father, had BVI company, wound up after Panama expose ![]()
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