Diversion of charitable trust assets triggers wealth tax liability on trustees when benefits flow to disqualified persons. Wealth-tax is leviable on and recoverable from the trustee or manager when property held under a charitable or religious trust is used, applied, or enures ... Summary
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Diversion of charitable trust assets triggers wealth tax liability on trustees when benefits flow to disqualified persons.
Wealth-tax is leviable on and recoverable from the trustee or manager when property held under a charitable or religious trust is used, applied, or enures for the benefit of persons disqualified under income-tax rules, or when trust funds are invested or shares held in contravention of prescribed investment restrictions; specified pre-existing trusts and exempt associations or institutions are subject to stated exceptions and modifications, and a deeming rule treats application to disqualified persons within the twelve months preceding the valuation date as constituting use or application.
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