FEATURE• Trusts and Succession Planning• Creation of Private Trusts, their purposes, their varieties, the tax consequences and how they are assessed;• Role of the Settlor, the trustees and the beneficiaries in the formation and running of the Trusts;• Creation of Foreign Trusts and their tax consequences in India, with special emphasis on Business Trust Act of Singapore• International Tax perspective on trusts. ABOUT THE BOOKPrivate Trusts and CorporatesTrusts are separate legal entities which are being used in almost all the countries to deal with specific needs/situations to transfer assets for the future benefits of a person and are easy to create. The need and reason may differ as to when and why they get chosen as a vehicle to achieve a felt purpose. Trusts are a ‘specie’ of common law; cestuique trust (beneficiary) is the term globally understood and in that sense, the law of trusts is a universal subject, unlike many corporate legislations that are country/continent specific. The evolving global pattern of business has created more reasons for creating trusts to carry on many activities including business and many times trusts help the settlors to keep a low profile and playa passive role. The book is a compendium addressing different situations where trusts have been a preferred vehicle; the annotations of cases and examples sharply illustrate the context and need. This book deals with various topics on creation of trusts, role of different stakeholders in trust and using trust as preferred instrument for succession planning, foreign trusts and their tax perspective. Author’s long experience in corporate sector and being hands on in many instances highlighted brings a practical flavour and perspective to the intricate subject. ABOUT THE AUTHORSS RAMANUJAMThe author’s interest that later became a lifelong passion for two intriguing and Creative subjects – the subject of Corporate Mergers (see the Author’s book – and the other this new book on the subject of Private Trusts started when he joined as a tax executive in Sarabhai Group of companies at way back in 1979. After a short stint at Oil India Limited, Assam, where he worked alongside greatest tax minds by finding new solutions within the existing frame work of Income Tax Law to overcome some unique situations created by the impasse between the Government of India and The Burmah Oil Company, UK, the author travelled to the new assignment at Vadodara where he Was told on the very first day “Not a paise more, or not a paise less to the tax department. If you have knowledge, take every case (assessment) to the Supreme Court. Here are your set of Mr. Palkhivalas’s books.” (InCidentally, he (Mr.and Mr. S.P. Mehta (another great Tax Advocate) were the advocates for the Group.) It was these words that shaped the illustrious career of the Author during the last 37 years to become a tax buff – solving tax issues like a Crossword puzzle. In the days at Vadodara, the author saw before hjs eyes n~w innovative schemes being successfully experimented through the medium of trust to beat the rigours of taxation w!tich was at a peak level of 65% to 70%. At one time, the Sarabhai Group had more than 1,400 trusts, 63 partners!tip firms and more than 300 private Omited companies (to quote the government sources) to beat the tax laws. Many new case laws were crea ted through the litigations of this group, resulting in new tighter laws getting enacted to plug the loopholes that existed. In the Author’s view, most of the amendments in relation to the trust laws were due to the activism exhibited by Sarabhaj Group in those days. This association continued in the long career the author had with United Group and later with pwc, a world renowned consulting organisation. The author has attempted to capture in this new book (Just like !tis other book on Mergers – which had gone to three editions) many unique aspects of private trusts. The author feels that the trust concept can be made use of in the present day context for a variety of purposes not necessarily for beating down the tax rates, but for creation of a tool for succession planning or wealth accumulation or even estate planning, by transfer to Siblings the share holdings, through the medium of trusts. A gljmpse of these methods are unfolded in this book with available precedents. It is hoped that this book will introduce and demystify the subject of trusts to corporates.