Dear Shri Shafi sir,
From recent Judgment , Trust should pass resolution for closure of trust with the consent of all trustees , may be via transfer of funds or distribution of balance amount of trust fund, as far as possible with the names of Done es . So that there may not be any confusion of or litigation in Tax Authorities . Be clear as far as possible.
Regards,
Shah D J
On Sunday, 26 July 2015 1:52 AM, "mohamed shafi shafi78647@yahoo.com [ICAI_CIRC_MEERUT_CA]" <ICAI_CIRC_MEERUT_CA@yahoogroups.com> wrote:
In my opinion a trust can distribute its assets to beneficiaries. On closure the fund needs to be transferred to another similar trust.Mohamed Shafi
From: "'Jelvis Henriques' dc_jelvis@rediffmail.com [ThaneCAs]" <ThaneCAs@yahoogroups.com>
To: ThaneCAs@yahoogroups.com
Sent: Wednesday, 22 July 2015 7:21 PM
Subject: Re: [Thane CAs] Closure of Private Trust
Dear Sir,In my opinion, Normally a trust is automatically terminated when its purpose is fulfilled or when
the purpose becomes illegal, impossible, impractical, or contrary to public policy. Generally, if the settlor has not expressly reserved the power to revoke or modify a
trust, the power to do so does not exist. If settlor has reserved the right to revoke the trust than the same be exercised on grounds of there being no activity in pursuance of its inception objective.If trust is irrevocable, then The trust may be dissolved by
the existing Trustees. Dissolution involves the distribution of Trust Assets to the beneficiaries and also requires consent of the beneficiaries, especially in an irrevocable trust (Here company is the beneficiary and not the employees like in any esop trust)Deed of Dissolution will be executed by the trustees who are trustees as on date. The company specifically must allow the dissolution. Normally it can issue a direction cum No Objection cum clearance for the
dissolution.Thanks
Jelvis
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From: "CA Satish Kadam skkadam_co@yahoo.com [ThaneCAs]"ThaneCAs@yahoogroups.com
Sent:Wed, 22 Jul 2015 15:46:52 +0530
To: ThaneCAs@yahoogroups.com
Subject: [Thane CAs] Closure of Private Trust
Dear All,
>A company has created private trust for the benefit of its employees. No activity has bee carried since last 10 years. Trust has FDR in bank and would like to close the trust. Trust is filling income tax return and are paying Maximum rate of tax.
>Please let me know what are the closing formalities.
>Thanks in advance.CA Satish Kadam
>Icchapurti Bungalow,
>Plot No. 31, Savarkar Nagar,
>Thane (W) 400606
>Tel : 9869016681, 9702061490, 25811086
>Emails : skkadam_co@mtnl.net.in, skadam.co@gmail.com, skkadam_co@yahoo.com
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Posted by: Dipak Shah <djshah1944@yahoo.com>
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