There have been minor but in some cases helpful clarification as to the manner of reporting investment portfolios and their movements on the event or during the preceeding year on Imprimé n°s 2181 Trusts1 and Trusts2.

However the portfolio reporting relaxation appears to be addressed to French portfolios. This is probably because it was the French Banking Federation that asked the question. The clarification was set out in a letter sent  by the French administration in January, 2015 in response to a written request for clarification as to the practicalities of declaration from the French Banking Federation in 2013 (see the  link for a summary).

The letter also stated categorically that Trustees have to declare every potential beneficiary under the trust and can no longer content themselves with declaring only first tier beneficiaries.  Any trustee who has been mistakenly advised that they need only report immediate beneficiaries is therefore at risk of penalties.  We are now coming to the stage where the French admlinistration may decide that the honeymoon period as to penalities is over, as the budgetary inflow of tax since the introduction of the levy has been significant.

In addition the French administration have confirmed to the French Banking Federation that providing the capital realised is reinvested in the portfolio held by the trustees, and that certain conditions are met  there is no need to file a déclaration événementielle n° 2181 for each operation which was otherwise required on a literal interpetation of the term "modification" used in the law.

Trustees should contact Peter for details on + 44 (0)1534 625879, as the doctrinal status of the letter as binding the administration to an interpretative dcontrien is less than evident.

What is also welcome is that Peter's opinion that trusts of land fall outside the definition of a trust has been confirmed in principle by the French administration's admission that the list of trusts falling outside the defintion -charities, pension funds etc.- is not exhaustive. If a trustee, a settlor or a beneficiary is uncertain about this and what use can be made of it, contact Peter.