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Private Client & Offshore Services

04 March 2021
Samantha Conolly Advance healthcare directives

Cayman Islands - Ogier

In 2019 the Health Care Decisions Act was implemented in the Cayman Islands. This law allows individuals to determine their wishes surrounding medical care and treatment, including end-of-life care, should they become mentally incompetent, and prepare a legal document to this effect. The legal document (known as an 'advance healthcare directive') outlines preferred medical treatments and procedures, such as life support and resuscitation.

Author: Samantha Conolly
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Angelos G Paphitis Employing a holding company as a family investment company: how does it compare to a family trust?

Cyprus - A G Paphitis & Co

Given the strengthening of the rules on corporate tax avoidance, individuals must consider better estate protection strategies and undertake legitimate tax and tax avoidance planning. Family trusts are deeply embedded in estate planning, but the Cyprus holding company may also be utilised as a family investment company as an alternative to a family trust. The question of which one to opt for depends on individual family circumstances, objectives and investment strategies.

Authors: Angelos G Paphitis, Andrea Psara
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Bryan De Verneuil-Smith The Carlyle case – the final chapter

Guernsey - Ogier

The long-running Carlyle case recently came to an end when the parties reached a non-confidential settlement. The case arose from the March 2008 collapse of Carlyle Capital Corporation Ltd, a Guernsey fund which invested mainly in residential mortgage-backed securities issued by US government-sponsored entities Fannie Mae and Freddie Mac. The case is of particular relevance now during the COVID-19 pandemic, which will likely lead to more fund collapses.

Author: Bryan De Verneuil-Smith
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S R Patnaik To trust or not to trust: Mumbai ITAT confirms exclusion of offshore trust's corpus fund from wealth tax

India - Cyril Amarchand Mangaldas

Although offshore discretionary trusts are an acceptable form of tax planning, they have been used as a means of money laundering. Thus, the Income Tax Department has unveiled various private offshore trusts and imposed tax liability on the beneficiary owners. However, the Mumbai Income Tax Appellate Tribunal recently held that a beneficiary of an offshore discretionary trust cannot be taxed on the entire corpus fund merely because they have the power to appoint or reappoint trustees.

Authors: S R Patnaik, Kunal Savani, Pragya Chandak
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Niamh Lalor Mandatory disclosure rules

Jersey - Ogier

The Taxation (Implementation) (International Tax Compliance) (Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures) (Jersey) Regulations 2020 are expected to come into force shortly. The regulations will primarily affect promoters and service providers of certain arrangements, implementing a 30-day window to report disclosable arrangements to the Comptroller of Revenue. Failure to comply may lead to financial penalties and, in some instances, criminal penalties.

Authors: Niamh Lalor, Matthew Shaxson
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George Mitchell Welcome relief? Mitigating double taxation of beneficiaries

United Kingdom - Forsters LLP

UK-residents who are US citizens and beneficiaries of US trusts may be taxed twice on the trust's income or capital gains because of the overlapping scope of UK and US taxation. The UK-US Double Taxation Convention may not serve as the desired panacea where there is a mismatch in both the timing of tax liabilities and the taxpayer's identity under the domestic laws of each jurisdiction. However, UK residents can mitigate this exposure.

Author: George Mitchell
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Severiano E Ortiz Reporting beneficial owners of certain US companies: details of new Corporate Transparency Act

USA - Kozusko Harris Duncan

The Corporate Transparency Act (CTA) recently became law. Once implementation regulations are issued, the CTA will require certain new and existing US companies to disclose information about their beneficial owners. There are both civil and criminal penalties for violations of CTA requirements. Given that family succession planning structures may include entities established under the laws of a US state, advisers to international families should familiarise themselves with this new disclosure requirement.

Authors: Severiano E Ortiz, Jennie Cherry, Bryan Hoseok Ok
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Recent updates

Victoria Grogan Registering a foreign power of attorney

Jersey - Ogier

Authors: Victoria Grogan, Fiona Lilleyman
Marc Kish Key trends in offshore dispute resolution

Cayman Islands - Ogier

Author: Marc Kish
Heather Corben Directors' role in ensuring that overseas companies are and remain non-UK resident for tax purposes

United Kingdom - Forsters LLP

Author: Heather Corben
Bryan De Verneuil-Smith Snapshot: pre-action disclosure

Guernsey - Ogier

Author: Bryan De Verneuil-Smith
Pedro Cortés Draft law on tax benefits for activities dedicated to scientific and technological innovation

Macau - Rato, Ling, Lei & Cortés Advogados

Authors: Pedro Cortés, Calvin Tinlop Chui

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