1. USES OF MAURITIAN TRUSTS MUHAMMAD UTEEM LLM TEP 1 Mauritius International Financial Services: Onwards & Upwards UTEEM CHAMBERS A Law Firm registered under the Mauritius Law Practitioner’s Act

2. INTRODUCTION 2  Austin v Bailey (1962)  Trusts Act 2001 -Qualified Trustee -Protector -Letters of Wishes -Remedies UTEEM CHAMBERS

3. TAX PLANNING 3  Tax Incentive Trusts: - the settlor : non-resident global business licence holder another tax incentive trust - all beneficiaries: non-resident global business licence holder - purpose trust carried out outside Mauritius UTEEM CHAMBERS

4. RESIDENT TRUSTS 4  Access to double taxation treaty network  Rate of Taxation: 15%  Deemed foreign tax credit: 80%  Chargeable Income = net income minus aggregate amount distributed to Beneficiaries  Distribution to non resident Beneficiaries is exempt from tax.  Trusts v/s Companies UTEEM CHAMBERS

5. 5  Definition of residency: - trust is administered in Mauritius and - a majority of the trustees are resident in Mauritius; or - the settlor resident in Mauritius at creation of trust  Foreign Trust can be resident in Mauritius UTEEM CHAMBERS RESIDENT TRUSTS

6. 6  Custodian and Managing Trustees  No need to transfer trusts assets into the name of new managing trustees  Comfort factor for settlor  Costs and tax savings UTEEM CHAMBERS RESIDENT TRUSTS

7. 7  0 % tax  declaration of non-residence filed with the Commissioner of Income Tax within 3 months after the expiry of the income year  Use: -Accumulation of Income Trusts. -Special purpose vehicle. UTEEM CHAMBERS NON RESIDENT TRUSTS

8. ASSETS PROTECTION TRUSTS 8  Trust assets separate from settlor’s assets  Trust not void or voidable by reason of settlor’s bankruptcy or attack by settlor’s creditors  Court may declare trust void if trust made with the intent to defraud creditors of the settlor at the time when trust property vested in trustee.  Action within 2 years from date of transfer to trust  Court will not enforce a foreign judgment in respect of claims of creditors in an insolvency  Must be planned carefully. Federal Trade Commission v Affordable Media LLC and other (the “Anderson case”) UTEEM CHAMBERS

9. FORCED HEIRSHIP RULE 9  Restrictions on free disposal of property  the transfer or disposition shall not be set aside  foreign judgment in respect of succession rights not enforceable  Planning Tips: - Succession law. Immovable v/s movable assets - Restriction on disclosure of information - Beneficial interest automatically lapses if Beneficiary attacks the trust. UTEEM CHAMBERS

10. STRUCTURED FINANCE 10 UTEEM CHAMBERS

11. LARGE NUMBER OF CREDITORS 11 UTEEM CHAMBERS

12. PENSION TRUSTS 12 UTEEM CHAMBERS

13.  Thank you for your kind attention. THE END UTEEM CHAMBERS