fibras 20052006 use or enjoymentsale sale business trust good option sale real property developments
TRANSCRIPT
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FIBRAS
2005 2006
USE OR ENJOYMENT SALE
SALE
• BUSINESS TRUST GOOD OPTION SALE REAL PROPERTY DEVELOPMENTS
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TRUST
• GRANTOR: THIS IS THE PERSON WHO CONTRIBUTES ASSETS OR RIGHTS TRUSTEE: THIS PERSON IS RESPONSIBLE FOR COMPLIANCE WITH PURPOSES OF THE TRUST
• BENEFICIARY OF THE TRUST: • THIS PERSON RECEIVES THE BENEFIT OF
THE TRUST - IT CAN BE THE TRUSTOR HIMSELF
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TRUST
• ARTICLE 318 GENERAL LAW ON NEGOTIABLE INSTRUMENTS AND CREDIT TRANSACTIONS– BY VIRTUE OF THE TRUST, THE TRUSTOR
TRANSFERS THE OWNERSHIP OR TITLEHOLDER OF ONE OR MORE ASSETS OR RIGHTS TO A TRUST COMPANY, AS THE CASE MAY BE, TO BE DESIGNATED FOR LAWFUL, DETERMINED PURPOSES. THE TRUST COMPANY IS GIVEN THE RESPONSIBILITY OF CARRYING OUT THOSE PURPOSES.
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TRUST
• ARTICLE 382 LGTOC (INITIALS IN SPANISH)• PERSONS HAVING THE NECESSARY CAPACITY TO
RECEIVE THE BENEFIT IMPLIED BY THE TRUST CAN BE BENEFICIARIES OF TRUSTS
• ARTICLE 384 LGTOC (INITIALS IN SPANISH)• ONLY PERSONS HAVING CAPACITY TO TRANSFER
THE OWNERSHIP OR LEGAL TITLE OF THE ASSETS OR RIGHTS, SUBJECT MATTER OF THE TRUST, CAN BE TRUSTORS, AS THE CASE MAY BE, AS WELL AS THE JUDICIAL OR ADMINISTRATIVE AUTHORITIES WITH COMPETENT JURISDICTION THEREFOR
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TRUST
• ARTICLE 386 LGTOC (INITIALS IN SPANISH)• ACCORDINGLY, ONLY THE RIGHTS AND ACTIONS
RELATING TO THAT PURPOSE MAY BE EXERCISED, EXCEPT FOR:
– THOSE EXPRESSLY RESERVED BY THE GRANTOR– THOSE DERIVED FROM THE TRUST FOR THE
GRANTOR OR– THOSE ACQUIRED LEGALLY WITH RESPECT TO
SUCH ASSETS, PRIOR TO THE CREATION OF THE TRUST BY THE BENEFICIARY OF THE TRUST OR BY THIRD PARTIES
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TRUST
• ACTIVITIES CARRIED OUT THROUGH TRUSTS HAVE TAX EFFECTS:
1.- CONTRIBUTION OF ASSETS TO THE TRUST BY THE GRANTOR
2.- BENEFIT (YIELDS, EARNINGS) GENERATED BY THE TRUST AND RELIES ON THE PURPOSES OF THE TRUST
3.- THE PERSON RECEIVING THE BENEFIT WHO IS THE BENEFICIARY OF THE TRUST
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TRUST• FORMS OF CREATING REAL PROPERTY TRUSTS:
– WHEN THE GRANTOR ALREADY HAS REAL PROPERTY AND WISHES TO CONTRIBUTE SUCH PROPERTY
– WHEN REAL PROPERTY FOR LEASE OR SALE IS ACQUIRED IN THE TRUST
• A COMBINATION OF BOTH• END: LEASE OR SALE• BENEFICIARIES OF TRUSTS WHEN THEY RECEIVE
THE YIELDS, WHO CAN BE THE SAME GRANTOR OR BENEFICIARIES OF TRUSTS
• A COMBINATION OF BOTH
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TRUST (ART. 14 C.F.F.)
I. CONTRIBUTION OF REAL PROPERTY TO THE TRUST– ALL TRANSFERS OF OWNERSHIP ARE SALES– THAT CARRIED OUT THROUGH A TRUST, UNLESS:
• THE GRANTOR DESIGNATES OR BINDS HIMSELF TO DESIGNATING A BENEFICIARY OF THE TRUST OTHER THAN HIMSELF, PROVIDED THAT HE HAS NO RIGHT TO REACQUIRE THE ASSETS FROM THE TRUSTEE
• THE TRUSTOR LOSES THE RIGHT TO REACQUIRE THE ASSETS FROM THE TRUSTEE IF THAT RIGHT HAD BEEN RESERVED
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TRUST
II. INCOME OR RETURNS GENERATED BY THE TRUST HAVE TAX CONSEQUENCES
- A TRUST IS NOT A FINAL TAXPAYER OF INCOME TAX
- A TRUST HAS NO LEGAL PERSONALITY FOR TAX PURPOSES - IT ACTS FOR ACCOUNT OF TAXPAYERS
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TRUST
• EFFECT IF THE TRUSTOR IS NOT THE BENEFICIARY OF THE TRUST AND DOES NOT RESERVE THE RIGHT TO REACQUIRE THE ASSETS FROM THE TRUSTEE
– TAX SALE - VAT (IF APPLICABLE), INCOME TAX, ASSET TAX
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BUSINESS TRUST(ARTS. 2 AND 13 LISR)
• WHEN BUSINESS ACTIVITIES ARE CONDUCTED THROUGH A TRUST:– THE TRUSTEE DETERMINES TAXABLE INCOME
OR A TAX LOSS IN TERMS OF TITLE II– BENEFICIARIES OF THE TRUST ACCRUES OR
DEDUCTS TAXABLE INCOME OR THE TAX LOSS– THE TRUSTEE IS BOUND TO MAKING ESTIMATED
PAYMENTS– THIS RESULTS IN A PERMANENT
ESTABLISHMENT FOR NONRESIDENTS– INCOME FOR INDIVIDUALS FROM BUSINESS
ACTIVITIES
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BUSINESS TRUST
• EARNINGS RATIO
– TRUST ACTIVITIES
– WHEN THERE IS NO EARNINGS RATIO OR IN THE FIRST YEAR OF OPERATIONS
• EARNINGS RATIO PROVIDED FOR IN ARTICLE 90 INCOME TAX LAW
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BUSINESS TRUST
1. GRANTOR
FBENEFICIARY OF THE TRUST
2. GRANTOR
FBENEFICIARY OF THE TRUST
TRUST(B) (C)
A) NO INCOME TAX IS DUE (DEFERMENT)
B) NO ASSET TAX IS DUE (DEFERMENT)
C) DETERMINES INCOME AND/OR LOSS
ESTIMATED PAYMENTS
CONTRIBUTES LAND REVERSAL CLAUSE (A)
$
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TRUST
INCOME $200
LESS: DEDEDUCTIONS
ACCRUED INCOME 100 CUMULATIVE INCOME I.
TRUSTOR 50 50
THE BENEFICIARY OF THE TRUST
II. TRUSTOR 50
BENEFICIARY OF THE TRUST
THE TRUSTOR MAKES ESTIMATED PAYMENTS
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BUSINESS TRUST
• ESTIMATED PAYMENTS MADE BY THE TRUST ARE REPORTED TO TRUSTORS, BENEFICIARIES OF THE TRUST, WHO WILL APPLY THEM BASED ON THEIR PARTICIPATION
• TAX REGIME OF PREPAYMENTS