TAXATION OF INCOME AND ASSETS RECEIVED BY BENEFICIARIES (DOMICILED IN BRAZIL) FROM A TRUST ESTABLISHED ABROAD:

A LEGAL QUALIFICATION PROBLEM

Abstract

There is a complexity to analyze the tax repercussion resulting from a trust established abroad when the beneficiary is a tax resident in Brazil. The discussion on tax incidence involves understanding the legal relationships that arose from the constitution of the trust. Mainly, it is difficult to assimilate and qualify the assets that form the trust as to its ownership by the trustee and the beneficiary. It is argued here that the problem of qualification of assets can be tackled from an analysis supported by economic consideration.