Advancing the Kingdom of Yeshua law lesson 2

Why the Natural Law Trust is Nontaxable

This knowledge is supported by examples from the USA, but it is equally applicable worldwide, because natural law goes everywhere. Common law goes everywhere. The UCC operates everywhere. Hundreds of thousands of people worldwide, perhaps millions, have been operating with this kind of trust very quietly without filing tax returns, without paying income tax, without trust vulnerability or penetration, without loss of assets, and without legal problems. The reason the tax agencies don’t consider the trust to be taxable is that they view it as a pass through to the individuals or entities that are taxable. The question of whether those individuals or entities are then liable for the income tax varies from case to case. It is not the scope of this book to address the taxability of entities other than the trust. It is likewise not the purpose or the intent of this book to give tax advice. If you need tax advice, seek out a competent tax professional. The sole point here is that the trust itself is a nontaxable entity. Here is a Yale university review article, reviewing Commerce and Trusts and it states over and over again, most trusts are treated as pass-through entities: "There is no mystery, however, in understanding why the trust appears so attractive as a commercial form. Although the trust resembles the corporation in supplying for the particular venture a highly adaptable, contract-like regime of rights, of fiduciary duties, and of internal governance, the trust offers investors an insolvency regime superior to that of corporate law, packaged in a way that facilitates pass-through taxation." https://law.yale.edu/sites/default/files/documents/pdf/Faculty/Langbein_Secret_Life_of_Trust.pdf (page 171, 175, 180, 189...) This superior type of pure natural law sovereign irrevocable trust not only has no obligation to pay income tax, but also has no tax return filing requirements. This is most significant. The reason is that it is non-statutory. It does not fall under any of the statutory categories that are subject to filing requirements. Letters to various inquirers from the U.S. Internal Revenue Service (IRS) have stated: "According to our National Office a Pure Trust Organization (an Unincorporated Business Trust) is an organization that has no return filing requirements and is a nontaxable organization." There are some statutory entities that are tax exempt. The difference with a properly designed Natural Law Trust is that not only does it have no tax paying liability, but it also has no filing requirements. A statutory non-profit corporation (maybe) exempt from paying, but it is not exempt from filing. It has to report all its income in, all its expenditures out, and re-justify its exempt status every year. The tax people can revoke it at any time. The good and well-designed Natural Law Trust, by contrast, has no filing requirements.

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