Belgian Cayman Tax 2.0: exit taxes worrisome for trust practitioners?

Abstract

The purpose of this article is to serve as a ‘warning' for trust practitioners around the world with regard to a new Belgian tax rule which might have extreme extraterritorial effects if a certain link with Belgium exists, i.e. in the event that a Belgian taxpayer can be identified as a ‘founder’ of the trust. Because both the scope and the exact workings of this tax rule are unclear, it is best to seek further advice if one doubts whether a transaction concerning a trust, or other 'legal construct’ might trigger this tax. Precisely because of these uncertainties, the authors seek to identify possible routes by which this tax rule can be challenged.