POWERS OF FOREIGN TRUSTEES IN CURACAO

Rights of foreign trustees are recognized

With respect to the question whether a Trustee in bankruptcy appointed in a foreign country can exercise his powers in Curaçao, there is specific case-law available. In a Curaçao lawsuit the question was raised whether the (foreign) Trustees in the bankruptcy of a natural person residing in South Africa are authorized to perform acts in relation to a legal entity (in this case a private foundation) in Curaçao, which legal entity was in fact controlled by him.

According to a judgment from the Curaçao court (5 May 2017; ECLI:NL:OGEAC:2017:51; Gavin Cecil Gainsford Q.Q. and …
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17
Dec 2020
CATEGORY

Legal

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DIRECTORS’ LIABILITY REVISITED

People keep asking questions about this topic

Generally, in Curaçao (as well as in Aruba, St. Maarten and the BES islands) liability may arise in the event a managing director is found to be seriously negligent (‘hem een ernstig verwijt kan worden gemaakt’) in fulfilling his tasks as member of the management board of a legal entity (NV, BV, foundation or association).

Section 2:8 subsection 3 of the Curaçao Civil Code (‘CCC‘) provides that in performing its duties the management board is focused on the interest of the legal entity and its associated business operations, insofar as they exist. This …
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10
Mar 2014
CATEGORY

Corporate

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RISK MANAGEMENT AND ASSET PROTECTION

Curaçao offers legitimate risk management solutions

Why would one consider an asset protection strategy? There are individuals and business entities all around the world not trusting their government (e.g. fear for expropriation or nationalization by their government). Or they are seeking legitimate protection from any future downturns. Or they do not want the world to know about their wealth and do want to protect their privacy as much as possible. Asset protection also can be an aspect of business, personal or estate planning.

It is quite common that limited liability companies are used for operating a business. The alternative, a …
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02
Feb 2014
CATEGORY

Finance

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CURACAO TAX REFORM 2011

New Opportunities for the International Sector

The Curacao tax reform 2011 was recently adopted by the Curacaoan parliament. The Curacao tax reform 2011 has some interesting features for the international financial sector. The expectations are that more features will follow during the next few years, however, no formal announcements have yet been made in this respect. A switchover from direct to indirect taxation is already evident in the Curacao tax reform 2011, although still on a modest scale. Expectations are that this trend will continue. Personal and corporate income tax rates will decrease, while turnover tax will increase from 5% …
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14
Oct 2011
CATEGORY

Tax, Various

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VOLUNTARY DISCLOSURE AND THE HUNT FOR UNDISCLOSED ACCOUNTS BY US AND DUTCH TAX AUTHORITIES

Propaganda machines up to speed

Publicity efforts by the US and Dutch tax authorities indicate that the hunt for undisclosed accounts in typical offshore jurisdictions is still a hot item. Although Curacao was not mentioned by the US authorities, the Dutch tax authorities announced a new search for undisclosed accounts in Curacao based on information provided by the French tax authorities. The IRS announced a new voluntary disclosure program which mitigates the risk of criminal prosecution in exchange for paying taxes, interest and a standardized penalty. Furthermore, the IRS announced that they will follow ‘new leads’ emanating from voluntary disclosures. …
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02
Feb 2011
CATEGORY

Tax

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REQUESTS FOR INFORMATION BY FOREIGN TAX AUTHORITIES

A request for information needs to contain specific information

The former Netherlands Antilles concluded several tax information exchange agreements (‘TIEA’) during recent years. These TIEAs also apply to the newly formed country Curacao. The Tax Arrangement for the Kingdom (‘TAK‘) is applicable within the Kingdom of the Netherlands, which includes Curacao. Article 37 of the TAK also contains the facilities for the exchange of information within the Kingdom.

Without a TIEA in place or a specific article in a double tax treaty facilitating the exchange of information between the treaty parties, the Curacao tax authorities would be prohibited from effectively exchanging …
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21
Dec 2010
CATEGORY

Tax

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THE DUTCH CARIBBEAN PRIVATE FOUNDATION AND ITS SUPERVISORY DIRECTORS

Only natural persons may be appointed

The articles of incorporation of a Private Foundation (PF) may provide, if so desired, that the authority of the board to make distributions is subject to the consent of the founder, a Supervisory Board or another body established within the PF e.g. an Advisory Board.

It should be noted that a corporate body that is not designated as a Supervisory Board but that has the characteristics of a Supervisory Board may qualify as such under Netherlands Antilles law. If this is the case, the following is applicable:

  • only natural persons may be appointed as …
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  • 21
    Feb 2009
    CATEGORY

    Corporate

    COMMENTS No Comments

    THE FORMATION OF A PRIVATE FOUNDATION IN THE DUTCH CARIBBEAN

    Formation requires a notarial deed

    A Private Foundation (PF) is formed by a notarial instrument executed by a Netherlands Antilles civil law notary and registered in the Register of Foundations at the Chamber of Commerce.

    The articles of incorporation of the PF includes the name of the PF and the word PF (or a translation thereof) as part of the name, the object(s) of the PF, the manner of appointment and dismissal of board members, the Island territory where the PF has its seat and the allocation of any liquidation surplus in the case of dissolution of the PF.

    The …
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    17
    Feb 2009
    CATEGORY

    Corporate

    COMMENTS No Comments