The offshore trust: a catalyst for development
| DOI | https://doi.org/10.1108/13590790710758486 |
| Published date | 24 July 2007 |
| Date | 24 July 2007 |
| Pages | 264-278 |
| Author | Rose‐Marie Belle Antoine |
| Subject Matter | Accounting & finance |
The offshore trust: a catalyst for
development
Rose-Marie Belle Antoine
Faculty of Law, University of the West Indies, St Michael, Barbados
Abstract
Purpose – To illuminate a new field of legal study – offshore financial law, especially the offshore
trust and how it impacts on financial crime.
Design/methodology/approach – Analytical approach to case law and legislation relevant to the
topic.
Findings – Offshore financial law and offshore trusts are innovative, dynamic vehicles for trust and
tax planning internationally but have to address avenues for financial crime.
Originality/value – Original and pioneering research into a new area of law. Practitioners in finance
law, trusts and tax, academics, legal regulators, accountants and other finance practitioners will find it
particularly helpful.
Keywords Internationalfinance, Tax havens, Tax planning,Trusts, Crimes
Paper type Research paper
Introduction
At first blush, this topic might seem to be ambitious, or even radical but, in truth, the
offshore sector has been responsible for significant developments in trust law. Some of
these innovations remain insular, peculiar to offshore business but many others have
filtered through to the onshore sector, or, at least, acted as catalysts for trust law
reform. Indeed, in general, the offshore sector makes a significant contribution to our
legal system, introducing many important new legal concepts and clarifying and
correcting several gaps in our legal framework. However, of the many creative
jurisprudential changes brought about by the offshore sector, none are more dynamic
than those of trust law. The simple reason is the attractiveness of the trust as a tool for
offshore investment, and the relative flexibility of the trust concept itself, the trust
being an ingenious tool of equity created for just such rationales, to introduce
flexibility into rigid legal systems and to enable accommodation of important business
and societal goals.
The offshore trust is a fascinating creation of statute, a fact which, in of itself,
challenges the notion of the trust as a characteristic creature of equity. Although
grounded in statute, the offshore trust borrows heavily from the familiar principles of
equity. Notwithstanding, it embodies unique concepts radical to the traditional trust.
I have coined the term “hybrid trust” to describe this new entity. This paper examines
some of these and attempts to locate the place of these new precepts in trust
jurisprudence, now and in the future. In sum, the offshore sector can be applauded for
creating the first indigenous and well regulated trust creation of modern times. In so
doing, it has compelled jurisprudential re-thinking about the nature and functions of
the traditional trust.
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1359-0790.htm
This paper is based on an article presented by the author at the Society for International trust
Practitioners conference in 2005 in Miami, Florida.
JFC
14,3
264
Journal of Financial Crime
Vol. 14 No. 3, 2007
pp. 264-278
qEmerald Group Publishing Limited
1359-0790
DOI 10.1108/13590790710758486
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