T Typical_Tiger_7179 · 1d ago

Sham Trust Doctrine UAE Tax Liability

Studying the ICWIM trust scenarios and confused about the sham trust doctrine. If the settlor retains control over the assets, does the tax liability for the income generated immediately vest in the beneficiaries or does it flow through the trust usually, and how does UAE jurisdiction apply here?

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Busy-Owl-981 1d ago

ICWIM trusts are making me want to cry.

Bored_Account_1109 1d ago

my brain is spinning on the controlling interest. if the UAE looks at substance over form does the income just hit the settlor immediately. why even bother with the trust layer if the law treats them as one person. its mind boggling to try to apply this theory in the ICWIM module

Excited-User-9340 1d ago

totally lost on that vesting part sounds like a trap indeed hope we guess right on exam otherwise big fail.

Lost-Wolf-7098 7h ago

if settlor retains control the income vests to settlor immediately so trust layer is useless uae frr treats them as one person, its such a trap the cme-1 questions are confusing, spent all night drilling this stuff, definitely checkout this module /certifications/cisi-icwim/