RE Z III Trust [2019] JRC 069

The Royal Court of Jersey has determined that the preferred course to follow when winding up an insolvent trust is for the existing trustee to apply a formal winding up procedure under the Court's supervision. Key features of this procedure would be (i) a moratorium on legal claims; (ii) the trustee should advertise for claims on the trust assets; and (iii) the trustee should require creditors to prove their claims before distributing the assets.

The Z Trusts litigation

Until now legal entities serving as board members, directors, or liquidators of companies could choose whether to subject themselves to VAT for the services they rendered. But according to the Belgian VAT administration’s published decision ET.125.180 on 20 November 2014, this optional regime will be abolished from 1 January 2015, making these entities liable for VAT mandatorily.