Tax Structuring
Investment in any jurisdiction requires sound taxation advice, which we provide to our clients in association with our specialised relationship firms. Taxation of trading and investment enterprises can be reduced substantially by prudent use of tax planning and countries with applicable double taxation treaties. With the recent EU crackdown on tax haven jurisdictions within its ambit (e.g. Liechtenstein, Monaco, the Channel Islands, Isle of Man, Gibraltar and Luxembourg), it may now be sensible to consider alternative structures outside of the EU’s influence and control. We assist our clients in choosing the right jurisdictions for their particular businesses.
The holding of a passive investment through a simple tax structure may be financially viable, but when an investment is held in a manufacturing or trading company or group, the treatment of loan interest, royalties and dividends all need to be considered more closely. In this situation, it is likely that it is most beneficial for the investing company to be incorporated onshore in a suitable jurisdiction with an appropriate tax treaty in place but with the ultimate ownership of the company being offshore. We help our corporate clients to structure their investments in the most effective manner.
Complex corporate structure may seem necessary and important. However, careful thought needs to be given to such structures if the ultimate owners may be vulnerable to inheritance tax or at risk of a business counterparty “piercing the corporate veil” or otherwise bring a claim against the investors personally. We advise our private clients on the available options and assist them in settling their corporate interests into a trust, so that the ownership is separate and distinct from themselves.
Our relationship firms form companies for our clients in all the offshore jurisdictions, give appropriate advice on international tax structuring and assist in the establishment and running of various trusts.