The Marc Bolan Charitable Trust

• Jurisdiction: Jersey
• Court: Royal Court
• Judge: (Crill, Deputy Bailiff):
• Judgment Date: 06 August 1981
• Date: 06 August 1981

ROYAL COURT

(Crill, Deputy Bailiff):

J.A. Clyde-Smith for the Trustees;

W.J. Bailhache for Rolan Bolan;

K.S. Baker for the remaining beneficiaries;

Solicitor General for the Attorney General.

Conflict of Laws—application of foreign law—foreign revenue law—where Jersey trustees have no power under trust to compromise claim by UK tax authorities, court may authorize agreed payment in general interest of beneficiaries if failure to do so might result in increased assessment

Trusts—powers and duties of trustees—payment of tax—where Jersey trustees have no power under trust to compromise claim by UK tax authorities, court may authorize agreed payment in general interest of beneficiaries if failure to do so might result in increased assessment

CRILL, DEPUTY BAILIFF: This is a representation by the trustees of the Marc Bolan Charitable Trust. It is an application by the new trustees, as I should call them, of the Trust, but it is fair to point out, as the Solicitor General did, that it really is a private trust and not charitable except in the last extreme. In fact Mr. Clyde-Smith for the trustees indicated that the distribution to the beneficiaries will in fact be confined virtually to the family of the settlor. I do not think it is necessary for me to go into the background as to why this application had to be brought. Suffice it to say that, as a result of certain matters and actions which the present trustees allege were wrong actions of the previous trustees and other persons and institutions, there is an action pending before this Court which I understand is set down for trial for some time in October or November of this year. Because of the arrangements of the trust and the financial settlements involved, a claim has been made by the United Kingdom taxation authorities against the trustees, who are of course resident in Jersey. The trustees have compromised with the taxation authorities to the extent that they have been able to persuade those authorities to discount the successful outcome of the pending litigation I have referred to and to be prepared to accept a once and for all payment of £100,000 in settlement of their claims. There is a second application before me which was added to the representation this afternoon, and it is this—not only do the trustees ask me to authorise the payment of the £100,000 out of the trust funds to the United Kingdom taxation authorities but also, so to speak, to give my blessing to a future payment...