Determinate beneficial interest in trusts: assess beneficiaries to avoid revenue loss from multiple trustee assessments. Trustees holding assets under a duly executed trust are liable for wealth-tax co-extensive with a beneficiary's known and determinate interest, and such trustee assessment must treat the beneficiary's trust interest as the top slab of the beneficiary's wealth for rate purposes. Once assessed in the trustees' hands, that interest cannot be again included for rate computation in a separate beneficiary assessment. To avoid revenue loss where beneficiaries have determinate shares in multiple trusts, assessments should be made on beneficiaries rather than trustees; a single beneficiary assessment is also preferable where only one trust is involved.
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Provisions expressly mentioned in the judgment/order text.
Determinate beneficial interest in trusts: assess beneficiaries to avoid revenue loss from multiple trustee assessments.
Trustees holding assets under a duly executed trust are liable for wealth-tax co-extensive with a beneficiary's known and determinate interest, and such trustee assessment must treat the beneficiary's trust interest as the top slab of the beneficiary's wealth for rate purposes. Once assessed in the trustees' hands, that interest cannot be again included for rate computation in a separate beneficiary assessment. To avoid revenue loss where beneficiaries have determinate shares in multiple trusts, assessments should be made on beneficiaries rather than trustees; a single beneficiary assessment is also preferable where only one trust is involved.
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