Beneficiaries of foreign trusts obliged to tax monitoring
On the basis of an answer provided by the Italian Revenue Agency which has not yet been made public, Paolo Giovannini and Dario Augello made some critical observations regarding the issue of exemption from filling in the RW Section for beneficiaries of discretionary foreign trusts.
Their contribution, which was published in Eutekne, addressed two issues:
1) whether a tax monitoring obligation for beneficiaries of discretionary foreign trusts can be effectively envisaged, since they have no rights over the trust;
2) whether, in the event of a monitoring obligation, such beneficiaries are in any case exempted from the monitoring obligation, in the presence of a resident intermediary charged with collecting the proceeds of the foreign trust distributed to the beneficiaries.
In the Agency’s opinion, the obligation of fiscal monitoring remains and the presence of the intermediary does not imply any exemption for the beneficiaries to fill in the RW Section.