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Offshore Trusts Report: Turks & Caicos Islands

The Voidable Dispositions Ordinance

In the absence of a term to the contrary Turks and Caicos Islands law provides that the law of any other jurisdiction with which the trust or any disposition made thereunder may otherwise be connected is to be excluded. The courts of the Turks and Caicos Islands consider they have jurisdiction over a trust in any one of the following circumstances: where the trustees reside on the Islands, where the trust property is situate on the Islands, where the trusts are administered from the Islands, and where the trust was set up under Turks and Caicos Islands law.

A "disposition" is the transfer of assets into a trust by a settlor. Creditors who have a claim against a settlor may wish to set aside the "disposition" and use the proceeds realised to satisfy their claim.

The provisions of the Voidable Dispositions Ordinance 1998 sharply circumscribe the circumstances in which a "disposition" can be set aside by a creditor, and so make the Turks and Caicos Islands that much more attractive a jurisdiction into which to settle a trust.

Generally speaking the Ordinance only applies to "dispositions" made after the Ordinance became law. "Dispositions" can be set aside by the Supreme Court on the application of a creditor in any of the following sets of circumstances:

  • if within 2 years of the "disposition" the settlor is deemed to have a contractual debt towards the creditor. If an application to the Supreme Court is not to be time barred it must be commenced by the creditor within 6 years of the "disposition" or within 6 years of the day the contractual debt arose, whichever is the later;

  • if at the time of the "disposition" the settlor had a contingent liability towards the creditor. Where the liability was contingent an application to set aside a "disposition" must be commenced within 6 years of the "disposition" if it is not to be time barred;

  • if within 2 years of the "disposition" the creditor had the right to bring a legal action against the settlor for an outstanding debt . If the application by the creditor to the Supreme Court to set aside the disposition is not to be time barred it must be commenced either within 6 years of the disposition or within 6 years of the legal action accruing, whichever is the later.
    In any application to set aside a "disposition" the burden of proof lies on the creditor to prove that the settlor wilfully intended to defeat the obligation owing to the creditor by making the "disposition".

The Report

Offshore Trusts Guide: Introduction

Offshore Trusts Guide: Jurisdictions

Bahamas Barbados Bermuda British Virgin Islands Cayman Islands Cook Islands Cyprus Gibraltar Guernsey Isle of Man Jersey Liechtenstein Madeira Malta Mauritius Monaco Nevis New Zealand Panama Seychelles Turks & Caicos Vanuatu

Turks & Caicos News

Turks And Caicos Relaxes Immigration Rules /5/2010/18
The Turks and Caicos Islands government has announced that it has relaxed immigration rules on short-term visitors to the island.

Caribbean Explores Fiscal Cooperation /3/2010/9
Ahead of the World Bank meeting, to be held on March 11-12, where CARICOM Finance Ministers will meet to discuss challenges that the region faces, CARICOM Secretary General, Edwin Carrington said it was vital for Caribbean economies to increase economic cooperation and remove fiscal barriers, for the prosperity of the region going forward.

OECD Reports On Its Progress With International Tax Standards /1/2010/20
According to the Organization for Economic Cooperation and Development, the focus of the Global Forum on Transparency and Exchange of Information is now shifting – from commitments and agreements to achieving an effective implementation of the standards.

Turk And Caicos Islands Removed From 'Grey' List /12/2009/29
The Turks and Caicos Islands have been placed on the OECD ‘white list’ of compliant territories, having signed 12 agreements on tax information exchange, thereby substantially implementing the internationally agreed standard on transparency and information exchange.

Crown Dependencies Welcome Foot Report Findings /11/2009/2
The British Crown Dependencies have welcomed the findings of the UK government's review of the dependencies, published on October 29, which recognizes their economic benefit to the United Kingdom, and efforts to achieve compliance with international standards.

UK Signs TIEA With Turks And Caicos /7/2009/28
A Tax Information Exchange Arrangement between the United Kingdom and the Turks and Caicos Islands was signed in London on July 22, 2009 - the first of three such agreements signed by the Caribbean jurisdiction's government that day.

The Netherlands Signs TIEAs With Anguilla And Turks /7/2009/27
Dutch Secretary of State Jan Kees De Jager (pictured) has welcomed agreements for the exchange of tax information between the Netherlands two Caribbean territories, signed on July 22.

Ireland Signs TIEAs With Anguilla, Turk And Caicos Islands /7/2009/24
Ambassador of Ireland to the United Kingdom, Bobby McDonagh, signed Tax Information Exchange Agreements with Anguilla and the Turks and Caicos Islands on behalf of Ireland, in London on July 22, 2009.

E-Commerce Solutions Continue To Flourish In Caribbean /7/2009/23
First Atlantic Commerce, a leading international multi-currency payment and risk management solutions provider, and Scotiabank, an international bank based in Canada and the leading bank in the Caribbean, have joined together to offer 3-D Secure services to online merchants in seven countries across the English-speaking Caribbean.

World Bank Study Provides Overview Of Caribbean Global Trade Integration /4/2009/14
The acceleration of trade integration in the Caribbean is essential to boost the region’s growth, create jobs, and reduce poverty, says a new World Bank study. The report argues that despite their small size, economies in the Caribbean must strive to become more competitive to fully reap the benefits of global trade integration.