STEP Slams 'Misinformed' Austrian Attack On Trusts

by Phillip Morton, Investors Offshore.com

27 November 2009

Ahead of a key meeting of European Union Finance Ministers, the Society of Trust and Estate Practitioners (STEP) wrote to the Austrian Finance Minister pointing out that remarks attributed to him in the press suggest that he is "seriously misinformed" about the role of trusts and how they are used in planning family finances.

According to STEP, Pröll has been widely reported as suggesting that Austria and Luxembourg would veto proposed changes to the EU Savings Tax Directive at next week’s ECOFIN meeting unless action was taken against trusts. He alleged that trusts allow investors, particularly in the Channel Islands, to remain anonymous.

“Channel Island trusts are already included in the revised EU Savings Tax Directive and any suggestion that they are anonymous is totally untrue,” commented STEP Chief Executive David Harvey, continuing:

“Trusts are private, like a bank account or credit card statements, but they are certainly not secret. Information on the source, owners and beneficiaries of trust funds is collected and, where appropriate, exchanged across borders.”

“It would be unfortunate if misinformed comments about the use of trusts overseas threatened the ability of UK families to make clear long term plans about their financial affairs and provide vital support to many major charities around the world,” added Mr Harvey.

STEP points out that trusts are widely used around the world as a secure way of holding and managing assets for people not ready and able to manage them themselves - for example, to provide for a husband or wife after the death of their spouse while protecting the interests of children.

The Society also emphasizes that the Channel Islands require trust professionals to keep accurate records of those involved in setting up a trust and make that information available to the authorities when required.

Furthermore, STEP highlights, the Channel Islands also have a strong track record of participating positively in initiatives to target tax evasion and other forms of criminal activity and have been members of the OECD’s ‘white list’ of co-operative jurisdictions since its inception.

Recommended