Panelist at HNWLondon conference on UK tax issues

Machas & Partners Law Firm has once again made an exclusive contribution to the Chambers and Partners Private Wealth 2024 Global Practice Guide! 📚 This year, our Founder Petros Machas, alongside Partner Ioannis Charalampopoulos and Senior Associate Vasileios Tsintzos, share their expert commentary on the latest Trends & Developments in Greece's private wealth sector. 🌐 With Greece’s continued economic growth and strategic reforms, the country remains a top destination for High-Net-Worth individuals and investors. Our article highlights the benefits of Greece’s updated Golden Visa program and non-dom tax regime, positioning the country as an ideal hub for tax planning and investment migration alongside with other tax incentives to explore business opportunities in Greece. 👉 We invite you to explore our insights in the Chambers Private Wealth 2024 Global Practice Guide and discover how Greece’s dynamic market can enhance your wealth management strategies. Read the article here: https://lnkd.in/dKgZ27wd #MachasAndPartners #LawFirm #ChambersAndPartners #ChambersGlobalPracticeGuides #PrivateWealth #ExpertContribution #Greece #InvestmentOpportunities #PrivateWealth #LegalInsights #WealthManagement #EconomicGrowth #InvestmentDestination

The Malta Institute of Accountants presented a set of proposals for Budget 2025 to the Hon. Minister of Finance Clyde Caruana. Building upon the work carried out by the Institute throughout the year, the focus of these proposals is on direct and indirect taxation measures that are necessary to simplify business processes, align requirements and reduce inconsistencies that might have a counter effect on other efforts, such as increased compliance. The Institute also proposed fiscal measures to continue promoting initiatives related to environmental, social and governance matters. 👉Read more: https://lnkd.in/eJC3XRny #mia #institute #professionalbody #maltabudget #proposals #finance

"UK Tax Amendments Target HNWIs: Why Cyprus is the Smart Solution"   On October 30, 2024, UK Chancellor Rachel Reeves announced major tax changes aimed at high-net-worth individuals (HNWIs), including a formal decision to abolish the non-domicile (non-dom) tax regime by April 2025. The new measures increase tax burdens, especially for UK residents with substantial assets and foreign income, prompting many HNWIs to consider relocating. Cyprus, with its attractive non-dom scheme, stands out as a prime option for those seeking a more tax-efficient solution.   Key Changes Impacting HNWIs Abolition of the Non-Dom Regime: The end of non-dom status means all UK residents will soon be taxed on their worldwide income, removing the key tax advantages that many HNWIs previously enjoyed. This significant change is expected to drive tax migration. Higher Capital Gains Tax (CGT) Rates: Standard and higher-rate CGT have increased to 18% and 24%, respectively, directly impacting investments and property disposals. Inheritance Tax (IHT) Adjustments: New caps on IHT relief, along with future inclusion of pensions in IHT calculations, place additional tax burdens on beneficiaries. Employer’s National Insurance Contributions (NICs): The increase to 15% with a lower threshold affects business owners and entrepreneurs, often significant wealth holders.   Cyprus Non-Domicile Scheme: A Prime Solution   Cyprus offers an appealing non-dom tax scheme tailored to HNWIs seeking a favorable tax base in the EU. Here’s why it’s so advantageous: Dividend, Interest & Rental Tax Exemptions: Non-domiciled residents are exempt from Special Defence Contribution (SDC) tax on dividend, interest, and rental income—a valuable benefit for those with diverse income streams. No Inheritance Tax: Cyprus has no inheritance tax, allowing for efficient wealth transfers without additional tax liabilities. Capital Gains Exemptions: Profits from securities are exempt from capital gains tax, making Cyprus a great choice for investors. Low Personal Income Tax: Competitive rates and exemptions create a tax-efficient environment for residents.   Becoming a Cyprus tax resident is straightforward: either spend 183 days in Cyprus or meet the “60-day rule,” which includes maintaining a residence and business ties in Cyprus. With these benefits, Cyprus is a robust choice for HNWIs looking for a well-regulated, tax-efficient EU base. As the UK increases tax pressures, Cyprus provides an ideal alternative for wealth preservation and financial planning.   For more details, visit www.savvacyprus.com.   #UKTaxChanges #HNWI #CyprusNonDom #TaxPlanning #WealthManagement #TaxResidency #FinancialPlanning #Cyprus  

Quy v Commissioner of Taxation (No 3) [2024] FCA 726 Justice Logan has allowed the taxpayers appeal of the AAT decision dated 26 February 2024 and has ordered the matter be remitted to the Tribunal for determination according to the law. Quy is a case that hinged primarily on the residency of the taxpayer. Mr Quy had resided in Dubai between 1998 and 2009 before relocating to Perth. He was deployed overseas again from September 2015 and did not return to Australia. Mr Quy and his wife moved to Thailand after the completion of his assignment in Dubai. Mr Quy's wife and daughters resided in a property in Beldon, WA and he visited occasionally, for between 29 days and 119 days in a single year. Mr Quy provided financial support to his wife and daughters which the Tribunal considered (among other factors) was indicative of a long-term plan to keep returning to Australia. In February 2024, the Tribunal decided Mr Quy was a resident of Australia for tax purposes on the basis his actions did not demonstrate behaviour consistent with the formation of a definite plan to abandon Australia completely, either for a period of time or indefinitely (see [111]). Justice Logan held the Tribunal had erroneously incorporated a reference to intention for the purpose of determining a person's domicile, an error conceded by the Commissioner [19]. The Tribunal's reasons, exhibiting to a material level, a misunderstanding of the meaning of the word 'permanent' in the phrase 'permanent place of abode' [24]. Justice Logan's judgment is so eloquently written that I could do it no justice by trying to summarise it here and I encourage those with a love of the law and/or the English language to read the judgment. Link in the comments #law #tax #taxlaw #residency

It's not over yet, but watch this space - “intention” is not part of tax domicile/residency test! For the Admin law buffs: applying the wrong legal test is a question of law resulting in material jurisdictional error (in this case also including a misunderstanding of “permanent”). I reiterate the comment in the original post - it's no easy feat to summarise this succinct and elegant judgment of Logan J - do have a read.

Economic Substance Act (ESA) in the British Virgin Islands (BVI)⇁ 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝘁𝗵𝗲 𝗘𝗦𝗔 The Economic Substance Act (ESA) was introduced in the BVI on January 1, 2019, to ensure that companies doing business in the territory contribute to the local economy. The act requires all BVI entities to prepare, report, and file an annual economic substance declaration about their business activities. 𝗥𝗲𝗹𝗲𝘃𝗮𝗻𝘁 𝗔𝗰𝘁𝗶𝘃𝗶𝘁𝗶𝗲𝘀 𝗮𝗻𝗱 𝗘𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗦𝘂𝗯𝘀𝘁𝗮𝗻𝗰𝗲 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀 The ESA defines certain activities as "relevant activities" that must meet specific economic substance requirements. These activities include: • Banking • Distribution and service centers • Insurance • Fund management • Finance and leasing • Headquarters • Shipping • Intellectual property • Holding (pure equity holding entities) Companies engaged in relevant activities must either: 1. 𝗖𝗮𝗿𝗿𝘆 𝗼𝘂𝘁 𝘁𝗵𝗲 𝘀𝘂𝗯𝘀𝘁𝗮𝗻𝗰𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝘆 𝘄𝗶𝘁𝗵𝗶𝗻 𝘁𝗵𝗲 𝗕𝗩𝗜: This means having a physical presence, employees, and operations in the territory. 2. 𝗗𝗶𝘀𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗲 𝗼𝗿 𝗺𝗼𝗱𝗶𝗳𝘆 𝘁𝗵𝗲 𝗮𝗰𝘁𝗶𝘃𝗶𝘁𝘆: If the activity cannot be carried out within the BVI, the company must discontinue or modify it to no longer fall under the relevant activity category. 3. 𝗗𝗲𝗺𝗼𝗻𝘀𝘁𝗿𝗮𝘁𝗲 𝘁𝗮𝘅 𝗿𝗲𝘀𝗶𝗱𝗲𝗻𝗰𝗲 𝗼𝘂𝘁𝘀𝗶𝗱𝗲 𝘁𝗵𝗲 𝗕𝗩𝗜: The company must prove that it is tax resident in a jurisdiction outside the BVI that is not on the EU's list of non-cooperative jurisdictions. 𝗘𝗦𝗔 𝗗𝗲𝗰𝗹𝗮𝗿𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗧𝗮𝘅 𝗥𝗲𝘀𝗶𝗱𝗲𝗻𝗰𝘆 Companies not conducting relevant activities must submit a completed ESA declaration form annually within six months of their financial year-end. For companies carrying out relevant activities, a completed ESA declaration form is required, along with evidence of compliance with the economic substance requirements if the company claims to be BVI tax resident. If a company is not paying taxes outside the BVI, it is automatically considered a BVI tax resident unless proven otherwise. In this case, the company must meet the relevant substance requirements to avoid legal enforcement actions. Contact Us: ⇁ + 1 284 494 8945 ⇁ bvi@fidelitycorporate.com ⇁ https://offshorebvi.com/ Order Online: ⇁ https://lnkd.in/eBm-XXaM #BVI #offshoreBVI #BVIcompany #offshorecompany #ESA #EconomicSubstanceAct #BVIEconomicSubstance

Event Recap: Trusts in Latin America - Exploring Wealth Strategies and Legal Frameworks 🔗https://lnkd.in/e6dc8hrU On August 29, 2024, STEP Zurich Centre hosted a hybrid event focused on the complexities of wealth management and legal frameworks surrounding trusts in Latin America. The panel, led by Geralda Kral of UMA Swiss AG, featured experts from EY and covered key strategies in jurisdictions such as Mexico, Colombia, and Peru. Key Highlights: 🌎 Wealth Strategies Across Latin America: How trusts are utilized to manage wealth and ensure effective estate planning within the region’s unique legal and tax frameworks. 💼 Tax Implications & Cross-Border Planning: Insights into the complexities of trusts and strategies for international clients navigating Latin America's regulatory environment. 🏦 Diversity in Trust Structures: Flexibility of trust structures across jurisdictions, catering to high-net-worth individuals and families. Speakers included: Abril Rodríguez Esparza, EY Mexico, expert in international tax and diversity. Hanspeter Misteli Reyes, EY Zurich, specializing in family and business tax planning. Roberto Cores, EY Peru, expert in personal and corporate tax solutions. Representing our team, Irma Herrera Lee, Head of Operations in Nyon, and Maritzemia Boloboski, Senior Associate, attended the event. The session concluded with a valuable networking opportunity, reaffirming the role of trusts in wealth preservation and succession planning in Latin America, with an increased focus on international compliance and sustainability. #WealthManagement #Trusts #LatinAmerica #TaxPlanning #EstatePlanning #Sustainability #Compliance

Before the glass and steel building, there is the crane Being a 🇫🇷tax lawyer in the 🇦🇪feels like walking a tightrope between two worlds. The contrast couldn’t be more striking. As I work with female leaders navigating the shifting sands of international business, the conversation often turns to the delicate balance between opportunity and risk. One thing I always emphasize is the grey area between what is legal in Dubai and what is considered acceptable from a French tax perspective. It’s entirely lawful here to set up a structure with no economic substance, but from the French viewpoint, this can easily cross the line into tax fraud. But this isn’t about sending a memorandum or offering generic advice. It’s about providing tailored, ongoing support with regular consultations. My goal is to empower these leaders with the clarity and understanding they need to make informed decisions. The result? The freedom to grow their businesses globally, with confidence and compliance, knowing that they are not only building with vision but also within the boundaries of the law.

🌍 Elasticity and Wealth: Jurisdiction Shopping in the 2020s for HNWIs💷 Quastels is excited to support the upcoming CONSULEGIS webinar, where our Private Wealth & Tax Partner, Ben Rosen, will lead a discussion on jurisdiction shopping for high-net-worth individuals (HNWIs). 📅 Date: Tuesday 3rd December 🕒 Time: 2:00 PM GMT 💻 Registration: https://lnkd.in/dp4b2FFP This session will delve into the evolving dynamics of global wealth planning and strategies for high-net-worth individuals in an ever-changing landscape. 🇬🇧 Ben Rosen will moderate and discuss the changes to the UK's tax regime post-budget. 🇨🇾 Georgia Ch. Lavithi from LLPO Law Firm will explore the Cypriot tax regime. 🇦🇪 Badi F. from Abdo Rafiq & Partners will delve into the benefits of Dubai. 🇮🇹 Walter Andreoni from Lawalty Avvocati Associati will examine the Italian regime. Don't miss this opportunity to gain cutting-edge perspectives on wealth management and jurisdictional choices. #WealthManagement #TaxPlanning #HNWIs #GlobalMobility

Delhi Tribunal in the case of SC Lowy P.I. (LUX) S.A.R.L. once again upheld the validity of TRC. 1. Validation of TRC - It recognized the TRC as sufficient evidence of the appellant's tax residency and beneficial ownership, emphasizing that the TRC should be considered sacrosanct unless there is evidence of fraud or sham transactions. 2. Establishment of Economic Substance: - The Tribunal acknowledged the genuine business activities of the appellant, which included: - Incorporation in Luxembourg in 2015 as an investment holding company. - Registration with SEBI as a Category II – Foreign Portfolio Investor. - Diversified investments across multiple jurisdictions, with only 13.95% in India - The appellant incurred substantial operational expenditures in Luxembourg indicating a genuine business presence. 3. Recognition of Beneficial Ownership - The Tribunal emphasized that the appellant had control and dominion over its funds and income, with no contractual or legal obligation to pass on the income to another entity, demonstrating ongoing business activities and economic substance. 4. Principal Purpose Test: The Tribunal found that the assessee's incorporation in Luxembourg in 2015, its investment activities, and its operational presence demonstrated that obtaining treaty benefits was not one of the principal purposes of its establishment. In conclusion, the Tribunal found that the assessee was entitled to the benefits of the India-Luxembourg DTAA, as the revenue authorities failed to provide sufficient evidence to support their claims of treaty shopping. This ruling reinforces the importance of recognizing TRCs and the economic substance of entities in international taxation. #Taxation #InternationalTaxation #DTAA #ITAT #Luxembourg #India #TaxLaw #EconomicSubstance #BeneficialOwnership #TaxResidency #LegalUpdate #GlobalInvestments #BusinessLaw #TaxTreaties