From:
To:
Date:
Subject:

John Fletcher
Sally Bodden, Elizabeth Stoppelmoor
Jan 2, 2008, 10:31 AM
RE: Trusts with known Canadian beneficiaries

Sally,
Can you please arrange for the trust deeds for these cases to be reviewed as a matter of priority in order to
determine whether any potential liability to Canadian tax arises by virtue of the fact that one or more
Canadian resident beneﬁciaries could potentially receive a share of the trust fund on the occurrence of the
Perpetuity Date. As you will have noted from the press release that was previously circulated, if the terms of
the trust are such that the trust fund is to be divided equally between all surviving beneﬁciaries living on the
Perpetuity Date without the trustee having any discretion as to the recipient beneﬁciaries and one or more of
the known beneﬁciaries are presently Canadian residents then such Canadian resident beneﬁciaries would
have both a Canadian reporting requirement in terms of providing details of their notional entitlement to
CRA and also paying taxes on this notional interest as the law is presently drafted.
Various groups are lobbying the Canadian government in a eﬀort to get this proposal scrapped but at this
time there is no assurance that this will be successful. We therefore need to identify potentially aﬀected cases
and take steps to amend the terms of the trust where possible.
Please let me have the results of your ﬁnding in each identiﬁed case as a matter of urgency. If any questions
arise please let me know as soon as possible so that we can arrange for clariﬁcation.
Regards
John R Fletcher
Managing Director
Appleby Trust (Cayman) Ltd
A P P L E BY
The Right People. The Right Places.
Clifton House
75 Fort Street
PO Box 1350
Grand Cayman KY1-­‐1108
Cayman Islands
Tel +1 345 814 2015
Fax +1 345 949 4901
jﬂetcher@applebyglobal.com
www.applebyglobal.com
BERMUDA

BVI

CAYMAN ISLANDS

HONG KONG

>_____________________________________________
>From:
Sally Bodden
>Sent:
Thursday, December 06, 2007 4:59 PM>
>To: John Fletcher; Elizabeth Stoppelmoor

JERSEY

LONDON

MAURITIUS

 >Subject: FW: Trusts with known Canadian beneﬁciaries
>
>Lizzi, please see Fiona's list below. You do have Stanley Trust from previous emails.
>
>______________________________________________
>From:
Fiona Crellin
>Sent:
Thursday, December 06, 2007 4:53 PM
>To: Sally Bodden
>Cc: Anne Fleming
>Subject: RE: Trusts with known Canadian beneﬁciaries
>
>
>In general terms the trusts with Canadian beneﬁciaries are:
>
>HGM Devaux 3
>Carl Dare Settlement
>L S Inglis
>P Mackenzie Trust
>Bodem Trust (one beneﬁciary may be living in Canada)
>
>Thanks
>
>
>Fiona Crellin
>Senior Trust Oﬃcer
>Appleby Trust (Cayman) Ltd
>
>A P P L E BY
>
>The Right People. The Right Places.
>
>Clifton House
>75 Fort Street
>PO Box 1350
>Grand Cayman KY1-­‐1108
>Cayman Islands
>
>Tel +1 345 814 2077
>Fax +1 345 949 4901
>
>fcrellin@applebyglobal.com
>www.applebyglobal.com
>
>BERMUDA BVI CAYMAN ISLANDS HONG KONG JERSEY LONDON MAURITIUS
>
>
>
>
>_____________________________________________
>From:
Sally Bodden
>Sent:
Thursday, December 06, 2007 3:49 PM
>To: Fiona Crellin; Anne Fleming
>Subject: FW: Trusts with known Canadian beneﬁciaries
>

 >
>Please let me have list, if any.
>______________________________________________
>From:
John Fletcher
>Sent:
Thursday, December 06, 2007 3:42 PM
>To: Ella K Ebanks
>Cc: Stephen O'Dwyer; Elizabeth Stoppelmoor; Sally Bodden
>Subject: RE: Trusts with known Canadian beneﬁciaries
>
>Thanks Ella,
>I have spoken to Stephen and what I would like to do is go through the deeds over the next few weeks and
identify the situation in each case. As a ﬁrst step can you send details of all the possibly aﬀected trusts on
your team to Lise so she can put this information into a spreadsheet. Sally can you please do the same for
your team's cases.
>
>thanks
>
>John R Fletcher
>Managing Director
>Appleby Trust (Cayman) Ltd
>
>A P P L E BY
>
>The Right People. The Right Places.
>
>Clifton House
>75 Fort Street
>PO Box 1350
>Grand Cayman KY1-­‐1108
>Cayman Islands
>
>Tel +1 345 814 2015
>Fax +1 345 949 4901
>jﬂetcher@applebyglobal.com
>www.applebyglobal.com
>
>BERMUDA BVI CAYMAN ISLANDS HONG KONG JERSEY LONDON MAURITIUS
>
>
>
>_____________________________________________
>From:
Ella K Ebanks
>Sent:
Thursday, December 06, 2007 3:23 PM
>To: John Fletcher
>Subject: RE: Trusts with known Canadian beneﬁciaries
>
>We have also sent to Frank Ney re The Frantasapi Trust. This is our complete list.
>
>Regards
>Ella K.
>
>_____________________________________________
>From:
John Fletcher
>Sent:
Thursday, December 06, 2007 12:01 PM

 >To: Ella K Ebanks
>Subject: RE: Trusts with known Canadian beneﬁciaries
>
>Thanks Ella but is this a complete lsit of all potentially aﬀected cases?
>
>John R Fletcher
>Managing Director
>Appleby Trust (Cayman) Ltd
>
>A P P L E BY
>
>The Right People. The Right Places.
>
>Clifton House
>75 Fort Street
>PO Box 1350
>Grand Cayman KY1-­‐1108
>Cayman Islands
>
>Tel +1 345 814 2015
>Fax +1 345 949 4901
>jﬂetcher@applebyglobal.com
>www.applebyglobal.com
>
>BERMUDA BVI CAYMAN ISLANDS HONG KONG JERSEY LONDON MAURITIUS
>
>
>
>_____________________________________________
>From:
Ella K Ebanks
>Sent:
Thursday, December 06, 2007 11:59 AM
>To: John Fletcher
>Subject: RE: Trusts with known Canadian beneﬁciaries
>
>Mr. Fletcher
>
>Below is the list of clients under Stephen's section that have been notiﬁed:
>
>Thatcher Trust -­‐ 75037
>Leona Fox Trust -­‐ 75163
>Joyce Fox Trust -­‐ 75168
>JAC Armstrong -­‐ 75035
>WMD Family Trust -­‐ 75032
>Kolber Trust -­‐ 75155
>
>Regards
>Ella K.
>_____________________________________________
>From:
John Fletcher
>Sent:
Thursday, December 06, 2007 11:22 AM
>To: Anne Fleming; Annie Mae McLaughlin; Becky Dinwoodie; Elena Jacob; Elizabeth Stoppelmoor; Ella K
Ebanks; Fiona Crellin; Jennifer Anderson; Phillip Tatum; Sally Bodden; Stephen O'Dwyer; Tanya Dube; Tonita
Powell>
>Subject: Trusts with known Canadian beneﬁciaries

 >
>All,
>Please see the attached press release advising of likely changes in Canadian tax law.
>
>Can I ask you all to conduct an urgent review of your cases and provide me with a list of cases which have
known Canadian resident beneﬁciaries (this means current beneﬁciaries with ﬁxed interests or any
discretionary beneﬁciaries whether or not they have received any distributions or beneﬁts to date). I
appreciate that in some cases we may have no idea of the residence status of all beneﬁciaries so this exercise
can only be conducted using the information presently available to us.
>
>The short point is to determine, in the case of a trust with Canadian resident beneﬁciaries, the terms of the
trust concerning the distribution provisions which will come into eﬀect on the occurrence of the Perpetuity
Date.
>
>As a ﬁrst step, however, we need to identify potentially aﬀected cases and review the trust deed in each
case.
>
>John R Fletcher
>Managing Director
>Appleby Trust (Cayman) Ltd
>
>A P P L E BY
>
>The Right People. The Right Places.
>
>Clifton House
>75 Fort Street
>PO Box 1350
>Grand Cayman KY1-­‐1108
>Cayman Islands
>
>Tel +1 345 814 2015
>Fax +1 345 949 4901
>jﬂetcher@applebyglobal.com
>www.applebyglobal.com
>
>BERMUDA BVI CAYMAN ISLANDS HONG KONG JERSEY LONDON MAURITIUS
>
>