Equiom Trust (CI) Limited v Mattas and Ors [2022] JRC 288 (16 December 2022)

Equiom Trust (CI) Limited v Mattas and Ors [2022] JRC 288 (16 December 2022)

The Trustee already possesses the necessary powers under Article 24(1) of the Trusts (Jersey) Law 1984, making express conferral unnecessary and not expedient. The decision to challenge the French tax levy is reasonable and in the interests of all beneficiaries, given the Trustee's primary liability and modest costs relative to the trust fund. Provision of substituted security is not reasonable as it is unnecessary, risks capital, and surrenders arguments under the revenue rule.

Citation
[2022] JRC 288
Parties
Applicant: The Trustee; First Respondent: Jean-Pierre Mattas; Second Respondent: Philippe Mattas; Third Respondent: Greek Government; Fourth Respondent: Attorney General; Fifth Respondent: Estate of deceased's sister
Jurisdiction
Jersey
Judgment Date
16 December 2022
Procedural Posture
Trust Variation and Blessing Application / Post Hearing Judgment
Outcome
Application to vary trust refused; blessing to challenge Levy granted; blessing to provide substituted security refused
Legal Topics
Trustee Powers, Variation of Trust, Foreign Tax Liability, Revenue Rule, Beneficiary Indemnity
Trusts Private International Law Tax Trustee Powers Variation of Trust Foreign Tax Liability Revenue Rule Beneficiary Indemnity

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Parties

The Trustee

Applicant

Jean-Pierre Mattas

First Respondent

Philippe Mattas

Second Respondent

Greek Government

Third Respondent

Attorney General

Fourth Respondent

Estate of deceased's sister

Fifth Respondent

Procedural Posture

Trust Variation and Blessing Application / Post Hearing Judgment

Legal Issues

  1. 1 Whether the Court should vary Clause 11 of the Will under Article 47(3) of the Trusts (Jersey) Law 1984
  2. 2 Whether the Court should bless the Trustee's decision to challenge the French tax levy
  3. 3 Whether the Court should bless the Trustee's decision to provide substituted security for a French tax liability

Ratio Decidendi

The Trustee already possesses the necessary powers under Article 24(1) of the Trusts (Jersey) Law 1984, making express conferral unnecessary and not expedient. The decision to challenge the French tax levy is reasonable and in the interests of all beneficiaries, given the Trustee's primary liability and modest costs relative to the trust fund. Provision of substituted security is not reasonable as it is unnecessary, risks capital, and surrenders arguments under the revenue rule.

Court Disposition

Application to vary trust refused; blessing to challenge Levy granted; blessing to provide substituted security refused

Orders

  • Refusal to vary Clause 11 of the Will under Article 47(3)
  • Approval of Trustee's decision to challenge the French tax levy