Investing Through Borders
April 23 - 27. 2018
Last week, business circles in Mumbai were abuzz with the news that the real estate billionaire Surendra Hiranandani had obtained a Cyprus citizenship and relinquished his Indian one. Before anyone could say ‘live tax-free’ he was quick to clarify that the reason he was leaving the shores was the ease of travel a European passport afforded, providing quick entry to most countries in the world.
Impact of U.S. Tax Reform
March 19 - 23. 2018
The recent overhaul of the U.S. tax code opened the door for wealthy families to potentially rework their estate plans in a number of ways. The Tax Cut and Jobs Act doubled the estate, gift and generation-skipping transfer federal tax exemption to $11.2 million for an individual and $22.4 million for a married couple starting in 2018.
The Shifting Regulatory Landscape
March 19 - 23. 2018
The regulatory landscape has shifted dramatically in recent years following the introduction of the U.S. Foreign Account Tax Compliance Act or FATCA and the global Common Reporting Standard (CRS). The aim of FATCA, which became effective in 2014, is to prevent U.S. taxpayers from evading taxes via offshore accounts. FATCA requires foreign financial institutions to report to the IRS information about overseas accounts held by U.S. taxpayers or by foreign entities in which they hold a significant ownership interest. More than 100 countries have agreed to comply.
Choosing a Jurisdiction
March 19 - 23. 2018
Choosing an offshore jurisdiction goes well beyond tax advantages. “A lot of people think it is tax driven in today’s world but it is protection and safety first,” says Mr. Stover. At this point in time most families are looking for stability and safety as it relates to the financial markets, the family itself and risks, such as geopolitical, he explains.
UK Treasury to revitalize innovation through big tax breaks
There is a clear push being given to funds willing to back innovative businesses which would require time, effort and research to fructify. The Treasury wants to take British endeavour into new fields. Addressing the British Parliament, Budget Chance...READ MORE
The US Tax reform BEATs down renewable energy
In their joint letter to the Senate in November’17 clean energy groups had raised alarm at the impact of the Base Erosion Anti-Abuse Tax (BEAT) provision. The provision basically applied a 100% tax on tax equity for multi-nationals and overseas investors. The letter, signed by the ACORE, AWEA, CRES and SEIA states, “Not surprisingly, major financial institutions have indicated that, under such a regime, they would no longer participate in tax equity financing, the principle mechanism for monetizing credit...READ MORE
Family Offices Still Patriotic with Investments
Even while direct investments seem to be booming among family offices, with special staff being hired to evaluate profitable sources among this asset class, the traditional domestic equities market remains stable and popular. According the 2017 FOX Global Investment Survey, domestic equities returns came just under natural resources at a 13% return rate, which stood much higher to direct investments that provide 8% returns. Even with the liability of higher taxes, however, domestic investments are...READ MORE
Indian Family Offices Eye Investments across Borders
Single and multi-family offices are increasingly partaking of the many benefits that lie in offshore investing. More often than not, they are viewed as relatively less volatile and hassle-free due to the tax advantages. Family offices take advantage of the ease of legally mitigating tax issues for UHNWIs, along with providing a high level of privacy to their customers. The rising taxes in India have enhanced the attractiveness of this investment option among the Indian family offices and their subsequent UHNWIs....READ MORE