Tool or tax dodge? Drawing the line for trusts in Czech holding structures

Abstract Simultaneously with the legitimate use of trusts as a means of asset protection and confidentiality, there is an observable trend towards, and potential for, the misuse of trust structures and their foreign equivalents in the context of aggressive tax planning. This article seeks to examine and evaluate the approach adopted by the Czech administrative courts towards trusts that are incorporated within holding structures, and to determine under what circumstances such use is deemed to constitute an abuse of law. The article concludes by formulating practical implications for legal professionals and the broader expert community.