In the matter of the E Settlement [2018] JRC 143 (10 August 2018)

The Trustee's decision to demand payment of interest was made under a mistake as to tax consequences and without taking into account a relevant consideration, satisfying the requirements of Articles 47G and 47H. The decision and receipt of interest are voidable and set aside.

Citation: [2018] JRC 143
Parties: Applicant: Representor (the Trustee); Potential Respondent: Her Majesty's Revenue and Customs (HMRC); Beneficiary: the son; Beneficiary: the grandson
Jurisdiction: Jersey
Judgment Date: 10 August 2018
Procedural Posture: Trust Law Application / Final Judgment
Outcome: application granted
Legal Topics: Mistake in Exercise of Trustee Powers, Hastings Bass Principle, Income Tax Liability, Relief Under Trusts (jersey) Law 1984

Trusts Taxation Mistake in Exercise of Trustee Powers Hastings Bass Principle Income Tax Liability Relief Under Trusts (jersey) Law 1984

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Parties

Representor (the Trustee)

Applicant

Her Majesty's Revenue and Customs (HMRC)

Potential Respondent

the son

Beneficiary

the grandson

Beneficiary

Procedural Posture

Trust Law Application / Final Judgment

Legal Issues

1 Whether the Trustee's decision to demand and receive payment of interest under loan notes should be set aside under Articles 47G and/or 47H of the Trusts (Jersey) Law 1984 due to mistake or failure to take relevant considerations into account

Ratio Decidendi

Court Disposition

application granted

Orders

Trustee's decision to demand and receive interest set aside under Articles 47G and 47H
Demand and receipt of interest declared of no effect from the time of exercise