NAV: The audit of trust asset management is starting

Starting mid-November, the National Tax and Customs Administration (NAV) will conduct checks on over a thousand trust asset management entities and private foundations. The focus will be on the legitimate use of these trusts, assessing whether they have real economic substance or were created solely for tax advantages. The investigation applies to organizations established before September 12, 2023, examining various aspects including the purpose of asset allocation and compliance with contractual goals. NAV emphasizes zero tolerance for misuse of trusts that harm public finances. Recent tax reforms have altered the taxation rules for trusts and increased state oversight, aiming to eliminate anonymity for actual owners of private equity funds and enhance regulatory measures.