Yes, but you must understand that the existence of the exception is not something the government gives, and it is not something you ask for. If it were an exemption, then yes, you would apply for it and get it. But an “exception” means there is no requirement to apply for it, and the gov’t is not going to grant it, because it isn’t in their statutes to do so.
On the other hand, millions of people worldwide, including your country, have quietly used these trusts for decades with no problem from the gov’t or the tax agency – – for the simple reason that they observe the tacit “don’t ask, don’t tell” policy.
It depends upon your knowing your rights. If you know you have the right to the exception, then if the tax office were to ever ask you to register the trust or file a tax return on it, you would just answer politely with a simple question: “What is the law that requires a private contract pure trust to register or be taxable?” Put the question back on them. Invariably, if they do produce a statute, it will not apply to the NLT, because the NLT isn’t under any statutes.
This illustrates that “The only rights you have, are the rights you know you have.” This is because if you have a right but don’t know you have it, your behavior will act in such a way that you may as well not have that right. But if you have a right and know you have it, then you can live accordingly and derive the benefits thereof.
This is what the wealthy around the world have been doing with the NLTs. They know they have the right to not file or pay – – because the NLT is an exception to the statutory requirements. The U.S. is one of the most onerous, aggressive, and abusive countries in the world to its own citizens when it comes to enforcing taxation, but it does not touch the NLTs. It steers clear of them because it knows that the elite use them, and there is no enforceable requirement for them to file. This is the same in England, Australia, and most countries around the world – – especially the English-speaking ones.
