Only Canada is entitled to tax the assets of a Canadian trust - THE COURT OF APPEAL OF PARIS RULES IN FAVOUR OF ALAIN ROCH, PRESIDENT OF BLUE BRIDGE WEALTH MANAGEMENT Français
MONTREAL, Feb. 6, 2023 /CNW Telbec/ - Alain Roch, President of Blue Bridge Wealth Management, is pleased with the decision of the Court of Appeal of Paris in the tax dispute with the French tax authorities regarding the legality of taxing the capital of Canadian trusts in France.
As Mr. Roch and his advisors have regularly asserted, the judges of the Court of Appeal of Paris ruled that only Canada has the right to tax trust assets and that France does not have the right to tax such assets.
Commenting on the Court of Appeal of Paris decision, Mr. Roch explained that he had turned in good faith to the appropriate French court to rule on this particularly complex issue of taxation and international treaty interpretation.
"We are very pleased with the ruling. It shows that Blue Bridge complies with national and international laws and regulations. We have always acted transparently and in accordance with applicable laws and regulations," he said.
The central issue was whether France is entitled to tax the assets of an irrevocable and discretionary trust that is resident for tax purposes in Canada, on the basis that the settlor was a French resident.
The judgment rendered today states that "the taxation of the trust assets in Canada and the taxation of those same assets in France in the hands of Mr. Roch in his capacity as trustee would constitute double taxation contrary to the Franco-Canadian treaty of May 2, 1975" [translation].
The judgment of the Court of Appeal of Paris is timely, as it puts into perspective the judgment of the Superior Court of Quebec rendered on January 26th.
To the surprise of many, the Superior Court of Quebec ruled on the application and interpretation of national and international tax rules governing trusts, complex issues that were not before that court, particularly since these issues were the subject of legal debates in France, which ended today with the decision in favour of Alain Roch by the Court of Appeal of Paris, which was duly seized of these issues.
It is important to note that the Superior Court of Quebec does not have jurisdiction over Canadian tax matters, much less international ones. Furthermore, the Superior Court was not called upon to judge Blue Bridge's business model, nor to assess the appropriateness of donations made by Canadian trusts to Canadian and foreign foundations recognized by the Canadian government.
"After all these legal distractions, we will continue to focus on the proper management of our clients' assets and the strategic development of our operations," concluded the President of Blue Bridge, while thanking his clients for the confidence they have placed in Blue Bridge.
Blue Bridge is a family office founded in Montreal in 2002. With a unique and independent structure, the company responds to the increasingly complex needs of its clients by offering a range of services at the crossroads of many disciplines, including wealth management, financial planning, insurance, securities custody and philanthropy.
SOURCE Société de fiducie Blue Bridge Inc
Justin Meloche, [email protected], 514 995-9704
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