Equity and the Law of Trust Chapter 1 § 7
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Questions and Answers

Which Act has been used by the courts to assist in the creation of tax avoidance schemes?

  • Value Added Tax Act 1994
  • Corporation Tax Act 1970
  • Income Tax Act 1967
  • Variation of Trusts Act 1958 (correct)
  • What did Lord Denning MR say about the avoidance of tax?

  • It is lawful but not a virtue (correct)
  • It is unlawful but a virtue
  • It is unlawful and not a virtue
  • It is lawful and a virtue
  • What is the relationship between equity and trusts and tax law?

  • They are unrelated and do not require a knowledge of tax law (correct)
  • They are somewhat related but do not require a knowledge of tax law
  • They are closely related and require a knowledge of tax law
  • They are somewhat related and require a knowledge of tax law
  • Which of the following is a reason why someone might create a trust or settlement?

    <p>To reduce taxation</p> Signup and view all the answers

    What is the difference between tax evasion and tax avoidance?

    <p>Tax evasion is illegal, while tax avoidance is legal</p> Signup and view all the answers

    What can a settlor do to reduce the incidence of tax?

    <p>All of the above</p> Signup and view all the answers

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    Description

    Test your knowledge on trusts and taxation with this quiz. Explore the limits of tax reduction in settlements and understand the concept of "having your cake and eating it too."

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