The relevance of this type of trusts has increased for Russian businesses in connection with the amendments to the Tax Code of the Russian Federation related to the taxation of controlled foreign companies. A characteristic feature of a discretionary trust is that there is no need to indicate the ultimate beneficiaries, which makes this structure attractive for tax planning. The article analyzes the recent jurisprudence of the English courts regarding the use of discretionary trusts, identifies the risks associated with improper structuring of property rights based on discretionary trusts, and provides brief recommendations, the implementation of which will reduce these risks in practice.
Full version of the article: Legal Insight 2015