02-24-2004, 04:52 PM
03-07-2004, 10:58 PM
Hi salman
It will take some time for the tax authorities to apply anti avoidance provisions and as far as I know, there is no reported case yet gone to appeals process. But looking at sitution in the country, let me know how do feel about the following
1. A firm of tax consultants advise a client to transfer shares in his private limited company to a trust. Where the beneficiary and trustee is the original shareholder. To add some spice, the firm writes a letter and mentions that it will help save tax. The facts go to the appeals and then to appeal court, Revenue has every chance of enforcing anit avoidance legislation.
It will take some time for the tax authorities to apply anti avoidance provisions and as far as I know, there is no reported case yet gone to appeals process. But looking at sitution in the country, let me know how do feel about the following
1. A firm of tax consultants advise a client to transfer shares in his private limited company to a trust. Where the beneficiary and trustee is the original shareholder. To add some spice, the firm writes a letter and mentions that it will help save tax. The facts go to the appeals and then to appeal court, Revenue has every chance of enforcing anit avoidance legislation.
03-07-2004, 11:24 PM
take a simpler situation
A firm writes a letter to the same client, saying tranfer 50% holding to your wife, it will reduce overall tax liablity by making use of her allowances and any potential capital gains is distrubuted between husband and wife as well. I think you need a very good team of experts to help this situation escape anit avoidance legilsation
A firm writes a letter to the same client, saying tranfer 50% holding to your wife, it will reduce overall tax liablity by making use of her allowances and any potential capital gains is distrubuted between husband and wife as well. I think you need a very good team of experts to help this situation escape anit avoidance legilsation