Anson, Delaware LLCs and entity classification - Practical implications for investment managers and funds
|
|
- Bennett Barnett
- 8 years ago
- Views:
Transcription
1 September 2015 Anson, Delaware LLCs and entity classification - Practical implications for investment managers and funds Introduction In July 2015 the UK s highest authority court of appeal, the Supreme Court, released its eagerly anticipated judgment in the final stage of the Anson line of cases 1. Since the case was first heard by the First Tier Tribunal in 2010, a question mark has existed over the status of Delaware LLCs for UK tax purposes. Contrary to Anson s argument, which he eventually won, historically HM Revenue & Customs (HMRC) had maintained that LLCs were opaque for UK tax purposes and Anson represented the chance for some clarity on this and potentially entity classification more generally. Unfortunately the judgment has not provided the much hoped for clarity. Instead, it has raised various material uncertainties as to the status of Delaware LLCs, and possibly other overseas entities, for UK tax purposes. Both industry and HMRC are currently grappling with what the decision means in practice. We are aware that HMRC recognise the significance of the decision - and we expect that it will also recognise the need for certainty but a reaction that is sustainable and measured. Until a formal release from HRMC is available, which could take the form of an announced position or even a consultation or announcement on proposed legislative change, we cannot yet know what the decision in Anson fully means in practice. However steps can be taken to understand the potential impact it could have for investment managers and funds. In addition, Q3 reporting increases the need for certainty soon. Ultimately, we expect that how HMRC react is likely to be a policy decision, the key question presumably facing it now being whether to interpret the Anson decision narrowly and maintain the status quo to the extent possible, apply the decision broadly and upset the apple cart or take some middle ground approach. There have been various discussions in industry around the Anson case since its release. This article, following the background to the case set out below, focuses on the types of structures that could be affected by the decision and the practical implications the decision could have for those structures. Background It is critical to know whether an entity is opaque or transparent for tax purposes. Entity classification in broad terms whether an entity is opaque or transparent for UK tax purposes with all the resultant different tax consequences can be difficult at the best of times. This is because the test in the UK is case law based, and dependent on a range of factors such as whether those who have an interest in the entity in question are automatically entitled to the profits of the entity as they arise and whether the entity in question has legal personality, owns its assets etc (the so called Memec factors, based on the leading 1998 case on entity classification, Memec plc v Inland Revenue [1998] STC 754). These factors can be difficult to apply, particularly in relation to entities where there are no clear answers to these questions, where the answers depend on the specific constitution of the entity in question and/or a construction of local law, and/or where there are conflicting indicators of transparency and opacity. Until now, the status of a Delaware LLC for UK tax purposes has been contentious for all these reasons; HMRC have not appeared to recognise the different forms and uses of LLCs and their varying constitutions in different contexts, and indeed Anson challenged this position. Whilst HMRC publish an entity classification list in which common vehicles are listed as either opaque or transparent for UK tax purposes (with Delaware LLCs listed as opaque), HMRC s guidance 1 Anson (Appellant) v Commissioners for Her Majesty s Revenue and Customs (Respondent) [2015] UKSC 44 1
2 acknowledges that this is not wholly determinative since, for example, local law may have changed since the list was compiled some years ago and each entity needs to be considered on a case by case basis. For these reasons, where the position is uncertain clarification from HMRC is often sought. Certain other jurisdictions, such as the US, avoid these difficulties, for example through a check the box elective regime, where the entity in question can elect to be either opaque or transparent for local tax purposes. However, such regimes have no bearing on how HMRC view foreign entities for UK tax purposes, which is instead determined applying the various Memec factors mentioned above. Delaware LLCs are a popular vehicle for investment management, both on the manager side where investment managers are frequently structured as LLCs or have LLCs within their corporate groups, and on the Funds side, where Delaware LLCs may have been used, for example, as asset-owning or investor feeder vehicles. The decision in Anson is therefore of significant relevance to the investment management industry, as well as more generally. It is also potentially significant to management groups who have not used LLCs in their corporate or Funds structures but have used alternative non- UK vehicles, given the potential wider impact of the Anson decision on whether other non-uk entities are opaque or transparent for UK tax purposes. Coupled with some of the other changes announced in the Summer Budget, such as the reform to the dividend rules, the potential impact is even greater. Some specific examples of who may be affected by the Anson decision are considered below. What was Anson about? George Anson, a UK resident non domiciled principal of HarbourVest Partners LLC, a US investment manager, was subject to US tax and UK tax on his income distributions from the LLC that he remitted to the UK, resulting in an effective tax rate for him of 67%. The specific finding of the Supreme Court was that the US tax and UK tax was computed by reference to the same profits or income for treaty relief purposes, which was a requirement for Anson to be entitled under the US-UK double tax treaty to credit against his UK tax liability for the US tax paid, resulting in no UK tax in practice. The Supreme Court rejected HMRC s argument that the LLC was transparent for US purposes but opaque for UK tax purposes and that Anson s US tax was therefore paid on one source of income (his share of the profits of the LLC s trade) but that his UK tax was paid on a separate source of income (his distributions from the LLC) which would have precluded treaty relief. The finding was the result of Delaware law and the LLC s specific constitution, the combined effect of which was that George Anson and the other members of the LLC were automatically entitled to the profits of the LLC as they arose, which was held to be the crucial determining factor in reaching the same income conclusion. The decision implies that the LLC was transparent, at least for UK income tax purposes. However, the Supreme Court judgment seems to have deliberately avoided questions of transparency and opacity, found a way of distinguishing the case on its facts to avoid applying the usual Memec test, and in general has left various questions unanswered. The common sense interpretation is that the LLC in Anson was transparent for UK tax purposes. However, the Supreme Court stopped short of acknowledging this. Other questions the decision raises are: was the LLC in question transparent for capital gains purposes? Are the members of the LLC treated for UK tax purposes as carrying on the underlying trade, as in the case of a partnership? Are the UK resident members of an LLC subject to UK tax on an arising basis, even if there are no distributions? What weighting was given to the Delaware law and what weighting was given to the LLC agreement in question in other words does one have the ability to establish either a tax transparent or opaque LLC? What is the status of the Memec test (Memec was a Court of Appeal decision, and hence lower authority than Anson) now? Does the decision affect the position of other entities, for example Scottish limited partnerships, and where does Anson leave entity classification more generally? 2
3 Who could be affected? LLCs used in investment management groups Investment managers with LLCs in their corporate group will need to assess the potential implications of the decision. A finding that an LLC is in fact transparent for UK tax purposes, where previously, in line with HMRC s position, it was treated as opaque, is likely to have significant implications. There may be UK resident taxpayers in a similar position to George Anson who are entitled to tax refunds depending on the circumstances. By way of contrast, an adverse consequence may be that UK resident taxpayers are taxed on an arising basis. The correct tax treatment of historic profits may also need to be examined. Any restructuring of the corporate group involving an LLC that has been undertaken would also need to be re-examined, since the tax consequences may be significantly different to those that were understood to apply at the time, although this, and the other possible effects, raise interesting questions of legitimate expectations. Private equity houses who have paid carried interest through an LLC are also likely to be affected. Where that LLC has been treated as transparent, albeit that these types of LLC may be in the minority, any finding following Anson that the LLC, whilst transparent for UK income tax purposes is opaque for UK capital gains tax purposes, similar to a Baker trust, will change the tax treatment of the carry. The notional tax credit that usually attaches to dividend distributions should mean in such a case that the tax differential is reduced but one would need to be comfortable that the credit was in fact available. In addition, the dividend rules reform announced in the Summer Budget will increase this differential significantly. Many of the UK grouping and other rules operate in a way that may have meant that investment managers or advisers have relied on LLCs in their structure being opaque for UK tax purposes. If the position is not as expected, then these transactions, and the ability to rely on the grouping rules going forward, will need to be re-examined. LLCs used in Fund structures LLCs used as asset-owning vehicles, for example in private equity, hedge, infrastructure or real estate funds, will need to be re-examined. Typically, these have been used in such contexts as opaque corporate blockers. Any impact following a change in the entity classification of an LLC will depend in part on the wider fund structure but in principle a flow through to UK investors or executives of the manager/adviser will result in a different tax treatment than expected. The Anson decision may also have significant implications for various investor groups. UK pension funds, which are, broadly speaking, exempt from UK tax on their investment income but taxable on trading income, may find that they have taxable trading income if invested in a transparent LLC rather than exempt investment income via what they had thought was an opaque LLC. UK charities are similarly sensitive to trading income. In addition, whether an underlying investment vehicle is opaque or transparent is important for UK charity investors in considering, for example, whether they could have an exposure to taxable section 13 attributed (as opposed to actual) gains or offshore income gains given HMRC s position that attributed gains and offshore income gains fall outside the charities exemption, although the Anson decision may not materially affect existing structures in this respect due to wider structural features where UK charities are concerned. Finally, the position of taxpayers subject to UK corporation tax that are invested through an LLC may need to be re-examined in the event that the LLC can no longer be treated as opaque, since such a change may call into question whether distributions from the LLC are, and have been, exempt under the UK dividend exemption rules. 3
4 Other non-uk entities The Anson decision also raises questions as to the correct entity classification of other entities, beyond Delaware. If, for example, either Anson represents a revision of the usual Memec test (albeit unlikely) or results in a legislative test, then the position of other non-uk entities in investment manager and fund groups may need to be considered. Whilst the Supreme Court appeared to take care in not calling into question the continuing validity of the Memec test, by finding that its application was not appropriate in the specific circumstances of the Anson case, albeit that the basis for this distinction is not clear, it is understood that HMRC are not giving entity classification rulings for the time being, while the position is considered. On balance, the Anson decision is likely to, at best, reinforce the position for certain entities historically accepted as transparent such as Scottish and Guernsey/Jersey limited partnerships or, at worst, leave them unaffected. But there may be cases at the margin that are less clear cut. Could Anson affect taxpayers, other investors or fund managers in other jurisdictions? Whilst the Supreme Court s decision in Anson, and HMRC s reaction to it, once known, is not binding outside the UK, in practice certain other jurisdictions base their tax rules on UK developments. For example, the Irish tax authorities have, consistent with HMRC s historic position, treated Delaware LLCs as opaque for Irish tax purposes. Moreover, Ireland has been following the progress of the Anson line of cases and it is highly likely that HMRC s treatment of Delaware LLCs following the decision will influence how they are treated for Irish tax purposes. The implications of the decision may, therefore, affect investors and others beyond these shores. Conclusion There will not be certainty until it is known what position HMRC will take following the Anson decision. We expect that this position is likely to be based on policy grounds. However, at this stage some action could be taken to increase the likelihood of obtaining certainty as to the expected treatment involving Delaware LLCs, albeit that where a tax transparent LLC is required the uncertainty is greater until HMRC s formal position is known. As far as Delaware LLCs are concerned, the most sensible approach, and the expectation, is that the an LLC will either be transparent or opaque for UK tax purposes depending on the terms of its LLC agreement, which will need to be reviewed on a case by case basis. If this is the outcome, then given that the LLC agreement of the HarbourVest Partners LLC in Anson is fairly representative of LLC agreements in general, numerous LLCs may be affected. As far as other entities are concerned, it remains to be seen whether the approach to entity classification, based on the Memec test, will continue or whether HMRC consider that a different approach is necessary. One can see the attraction in HMRC seeking to construe the Anson decision as narrowly as possible to seek to maintain the status quo. This would involve taking the position that the finding in Anson is relevant only for the purposes of a claim for tax credit relief under the US-UK treaty in the specific circumstance of the case. Such a position may, however, be difficult to justify. Regardless of the detail of the position ultimately taken, it is highly likely that investment managers, among others, will need to consider the possible impact for them and their investors. A version of this article first appeared in International Tax Review. Reproduced with permission. 4
5 For more information contact Dan Roman Partner, KPMG LLP (UK) T: +44 (0) E: Aron Joy Senior Manager, KPMG LLP (UK) T: +44 (0) E: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation KPMG LLP, a UK limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ( KPMG International ), a Swiss entity. All rights reserved. The KPMG name, logo and "cutting through complexity" are registered trademarks or trademarks of KPMG International. 5
Recent Developments Regarding Entity Classification for UK Tax Purposes
Recent Developments Regarding Entity Classification for UK Tax Purposes Anson v. HMRC is a Delaware LLC tax-transparent? SUMMARY The question as to whether a non-uk entity such as a Delaware limited liability
More informationNOT TRANSPARENT : THE COURT OF APPEAL S DECISION ON THE DELAWARE LLC IN HMRC V ANSON 1
NOT TRANSPARENT : THE COURT OF APPEAL S DECISION ON THE DELAWARE LLC IN HMRC V ANSON 1 By Marika Lemos INTRODUCTION Earlier this year, 2 the Court of Appeal upholding the decision of Mann J in the Upper
More informationUK Tax Bulletin October 2015
UK Tax Bulletin October 2015 Introduction Current Rates:...Latest rates of inflation and interest Non-Doms : 2017 Proposals:...The draft clauses will be published on 9 December Residence:...The Upper Tribunal
More informationThe UK as a holding company location
The UK as a holding company location Tax May 2013 kpmg.com A key ambition is to create the most competitive tax system in the G20. As well as lowering tax rates, the Government wants to make the UK the
More informationWeekly Tax Matters. 21 August 2015. kpmg.co.uk
Weekly Tax Matters 21 August 2015 kpmg.co.uk contents CORPORATE TAX HMRC hold an informal consultation on the scope of ATED reliefs INDIRECT TAX Redcats Brands First-tier Tribunal decision EMPLOYMENT TAX
More informationOffshore Funds. Should you be concerned by the proposed changes?
Offshore Funds Should you be concerned by the proposed changes? February 2009 Executive summary HM Treasury is currently nearing the end of its consultation process on amendments to the "offshore funds"
More informationICAV - the New Irish Collective Asset-management Vehicle Mark Browne Dechert LLP
ICAV - the New Irish Collective Asset-management Vehicle Mark Browne Dechert LLP Ireland enacted legislation earlier this year which provides for a new type of corporate fund the Irish Collective Assetmanagement
More informationSTATES OF JERSEY REVIEW OF THE DRAFT CHARITIES (JERSEY) LAW (S.R.7/2014): RESPONSE OF THE CHIEF MINISTER STATES GREFFE
STATES OF JERSEY r REVIEW OF THE DRAFT CHARITIES (JERSEY) LAW (S.R.7/2014): RESPONSE OF THE CHIEF MINISTER Presented to the States on 5th August 2014 by the Chief Minister STATES GREFFE 2014 Price code:
More information2013 Thinking Beyond Borders
INTERNATIONAL EXECUTIVE SERVICES 2013 Thinking Beyond Borders United Kingdom kpmg.com United Kingdom Introduction An individual s liability to income tax in the United Kingdom (UK) is determined by residence
More informationUNITED KINGDOM LIMITED LIABILITY PARTNERSHIPS
UNITED KINGDOM LIMITED LIABILITY PARTNERSHIPS Background A United Kingdom Limited Liability Partnership (LLP) has become a very popular vehicle for international commercial activity. This is because the
More informationTax Guide for Individuals Moving to the UK
Tax administration and allowances The UK taxing authority is known as Her Majesty s Revenue and Customs (or HMRC for short) and the tax year runs from 6 April to the following 5 April. There is no system
More informationTERMINATION PAYMENTS AND INTERNATIONALLY MOBILE EMPLOYEES
Article A similar version of this article first appeared in tax Journal, 18 November 2013 TERMINATION PAYMENTS AND INTERNATIONALLY By James Hill Speed Read: The taxation of termination payments paid to
More informationNon-dom dilemmas and how offshore bonds can help. For advisers only. Not for use with customers.
Non-dom dilemmas and how offshore bonds can help For advisers only. Not for use with customers. 2 Non-dom dilemmas and how offshore bonds can help Background The UK has long been considered a tax haven
More informationChanges to Principal Private Residence relief
Changes to Principal Private Residence relief Principal Private Residence relief (PPR) from capital gains tax is to be restricted from April 2015 where a residence is located in a territory in which neither
More informationIntroduction. The Expatriate Financial Guide for UK Expatriates Working Overseas
Introduction The Expatriate Financial Guide for UK Expatriates Working Overseas An individual who is considering a move from the UK in order to work overseas will need to take into account a number of
More informationHow to Run Offshore Management Companies and Funds with Substance and Corporate Governance
White Paper Series: How to Run Offshore Management Companies and Funds with Substance and Corporate Governance This white paper series by Laven Financial Services discusses how hedge fund businesses should
More informationBLACKSTONE ALTERNATIVE INVESTMENT FUNDS PLC. (the Company ) An umbrella fund with segregated liability between sub-funds, and its sub-fund
BLACKSTONE ALTERNATIVE INVESTMENT FUNDS PLC (the Company ) An umbrella fund with segregated liability between sub-funds, and its sub-fund (the Fund ) SUPPLEMENT FOR UNITED KINGDOM INVESTORS This Supplement
More informationStop Press - New rules for non-domiciled UK residents - Further food for thought?
Stop Press - New rules for non-domiciled UK residents - Further food for thought? 22 January 08 Draft legislation to implement the changes announced in the Pre-Budget Report on 9 October 2007 has now been
More informationCOMMENTARIES ON THE ARTICLES OF THE MODEL TAX CONVENTION
COMMENTARIES ON THE ARTICLES OF THE MODEL TAX CONVENTION COMMENTARY ON ARTICLE 1 CONCERNING THE PERSONS COVERED BY THE CONVENTION 1. Whereas the earliest conventions in general were applicable to citizens
More informationMy client s a US citizen resident in the UK, what do I need to know?
My client s a US citizen resident in the UK, what do I need to know? So if my client s estate is worth less than the Credit Amount, my client has no reason to worry? Unfortunately, it isn t that simple.
More informationto taxation Australian 2005, and The discussions below
General Tax Information Relating to Holdings in Cadbury plc and Cadbury Schweppes plc This discussion of Australian, UK and US tax law considerations is intended only as a descriptive summary and does
More informationPrivate Equity Tax Express
Private Equity Tax Express ISSUE 2 May 2014 Definition of Beneficial Owner under Entrusted Investments The State Administration of Taxation of China issued the Announcement on the Definition of Beneficial
More informationTax Relief for Gifts To European Charities. UK tax law provides a number of reliefs and exemptions connected to charities.
Tax Relief for Gifts To European Charities Introduction UK tax law provides a number of reliefs and exemptions connected to charities. For example, the Gift Aid scheme allows donations to be deducted from
More informationTaiwan e-tax Alert. Issue 37 April 7, 2014
Taiwan e-tax Alert Issue 37 April 7, 2014 Views on possible applications of cross-strait taxation agreement from experience of tax treaties between Taiwan and other countries As the cross-strait taxation
More informationTax solutions for financial services firms
Draft Version 1 15/09/2015 Tax solutions for financial services firms PRECISE. PROVEN. PERFORMANCE. Tax solutions for financial services firms The Financial Services tax team at Moore Stephens provides
More informationMacau SAR Tax Profile
Macau SAR Tax Profile Produced in conjunction with the KPMG Asia Pacific Tax Centre Updated: June 2015 Contents 1 Corporate Income Tax 1 2 Income Tax Treaties for the Avoidance of Double Taxation 5 3 Indirect
More informationSweeter tax planning ideas
Sweeter tax planning ideas Helping to ensure you have made full use of the reliefs and allowances available www.bakertilly.co.uk Contents Sweeter tax planning ideas To ensure that you optimise your tax
More information31 October (paper filing) 31 January (Electronic Filing)
Worldwide personal tax guide 2013 2014 United Kingdom Local information Tax Authority Website Tax Year Tax Return due date Is joint filing possible HM Revenue and Customs (HMRC) www.hmrc.gov.uk 6 April
More informationUnited Kingdom Taxation
United Kingdom Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Authorized open-ended mutual funds in the United Kingdom are organized as authorized unit trusts (AUTs) or open-ended investment
More informationPRIVATE CLIENT BRIEFING:
PRIVATE CLIENT BRIEFING: I M A US CITIZEN RESIDENT IN THE UK, WHAT DO I NEED TO KNOW? JANUARY 2013 Almost uniquely, the US taxes its citizens (and Green Card holders) on a worldwide basis regardless of
More informationHSBC Securities Services: UK Tax Transparent Funds for Insurers
HSBC Securities Services: UK Tax Transparent Funds for Insurers Global Banking and Markets Cutting complexity to enhance growth The introduction of a UK domicile Tax Transparent Fund, also known as the
More informationPurchasing U.S. Real Estate
Purchasing U.S. Real Estate Tax Considerations for the Non-U.S. Investor Updated October 2015 Table of Contents Introduction... 2 Ownership in Personal Name... 2 Buying for Personal Use... 3 Buying for
More informationUSA Taxation. 3.1 Taxation of funds. Taxation of regulated investment companies: income tax
USA Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Taxation of regulated investment companies: income tax Investment companies in the United States (US) are structured either as openend
More informationNew United Kingdom Tax on Cross-Border Tax Planning: Diverted Profits Tax
UK CLIENT MEMORANDUM ENGLISH LAW UPDATES New United Kingdom Tax on Cross-Border Tax Planning: Diverted Profits Tax 5 February 2015 AUTHOR Judith Harger Introduction Following heated press coverage and
More informationOffshore funds. Important tax changes a summary. March 2010
Important tax changes a summary March 2010 1 Important tax changes - a summary Why should I read this briefing? This briefing summarises fundamental changes to the taxation of both offshore funds and investors
More informationRESIDENTIAL LANDLORDS TAX INFORMATION
RESIDENTIAL LANDLORDS TAX INFORMATION The following notes are intended to provide a useful background for investors buying and letting individual residential properties. Independent advice, tailored to
More informationTax Dispute Resolution Services kpmg.com
TAX Tax Dispute Resolution Services kpmg.com 1 Tax Dispute Resolution Services Are you prepared for a federal, state, or local income tax examination? Facing potential double taxation from an adjustment
More informationEurope. NEW OPPORTUNITIES FOR DIVIDEND WITHHOLDING TAX REFUNDS EU / EEA Tax Exempt Entities Handbook
Europe NEW OPPORTUNITIES FOR DIVIDEND WITHHOLDING TAX REFUNDS EU / EEA Tax Exempt Entities Handbook 3rd Edition April 2012 I n t r o d u c t i o n We are pleased to present the third edition of this handbook,
More informationMALTA: A JURISDICTION OF CHOICE
MALTA: A JURISDICTION OF CHOICE LONDON - September 2012 Doing business from Malta can make a huge difference for your business UHY BUSINESS ADVISORY SERVICES LIMITED Updated September, 2012 An attractive
More informationThe world-wide debt cap a fundamental change to the tax deductibility of finance costs in the UK
The world-wide debt cap a fundamental change to the tax deductibility of finance costs in the UK Since 2007, HM Revenue & Customs ( HMRC ) has been consulting with business on reforms to the taxation of
More informationJUDGMENT. Anson (Appellant) v Commissioners for Her Majesty s Revenue and Customs (Respondent)
Trinity Term [2015] UKSC 44 On appeal from: [2013] EWCA Civ 63 JUDGMENT Anson (Appellant) v Commissioners for Her Majesty s Revenue and Customs (Respondent) before Lord Neuberger, President Lord Clarke
More informationHow To Choose An Exchange Traded Fund
ETFs and Tax Paul Amery, Moderator Editor www.indexuniverse.eu Yvonne Kunihira-Davidson, Panelist Director Burt, Staples & Maner LLP Nathan Hall, Panelist Partner KPMG Dan Draper, Panelist Global Head
More informationII. The Evolution of the US LLC in Real Estate Ownership Structures. The Impact of the 1997 Check-the-Box Rules
Why Many International Investors Need to Use LPs instead of LLCs for US Real Estate Investments By Steven Schneider and John Grumbacher, Goulston & Storrs PC* I. Introduction International investors in
More informationBenefits for Collective Investment Vehicles in the EU
Volume 68, Number 6 November 5, 2012 Benefits for Collective Investment Vehicles in the EU by Petrina Smyth and Eimear Burbridge Reprinted from Tax Notes Int l, November 5, 2012, p. 581 Benefits for Collective
More informationODIN Eiendom. ( the Fund )
If you are in any doubt about the contents of this Supplementary Prospectus you should consult a person authorised for the purposes of the Financial Services and Markets Act 2000 who specialises in advising
More informationThinking Beyond Borders
INTERNATIONAL EXECUTIVE SERVICES Thinking Beyond Borders Hong Kong kpmg.com Hong Kong Introduction There is no general income tax in Hong Kong. For income to be subject to tax, it must fall under one of
More informationValue through Wealth Planning - Key trends in taxation of private investors. Prof. Pierre-Marie Glauser
Value through Wealth Planning - Key trends in Prof. Pierre-Marie Glauser Introduction (1) Wealth Management & Taxes Funds are Not declared Declared No taxes due Tax planning not necessary Relevant tax
More informationTax Considerations In Structuring US-Based Private Equity Funds
As appeared in the Private Equity and Venture Capital 2002 edition of the International Financial Law Review. Tax Considerations In Structuring US-Based Private Equity Funds By Patrick Fenn and David Goldstein
More informationWhat Are the Tax Reasons Favouring the United Kingdom as a Holding Company Location for International Groups?
UK CLIENT MEMORANDUM ENGLISH LAW UPDATES What Are the Tax Reasons Favouring the United Kingdom as a Holding Company Location May 13, 2014 AUTHOR Judith Harger Recent activity in the merger and M&A space
More informationDeduction of income tax from savings income: implementation of the Personal Savings Allowance
Deduction of income tax from savings income: implementation of the Personal Savings Allowance Consultation document Publication date: 15 July 2015 Closing date for comments: 18 September 2015 Subject of
More informationIrish Tax Institute. Response to OECD Discussion Draft: Make Dispute Resolution Mechanisms More Effective
Irish Tax Institute Response to OECD Discussion Draft: Make Dispute Resolution Mechanisms More Effective January 2015 About the Irish Tax Institute The Irish Tax Institute is the leading representative
More informationConflicts and Issues under The U.S. - India Tax Treaty
TAX TREATIES Conflicts and Issues under The U.S. - India Tax Treaty Shefali Goradia*, Carol P. Tello** When the income tax treaty between India and the United States ( Treaty ) was negotiated in the late
More informationFor your lawyers only: the UK Supreme Court ruling on legal advice privilege
For your lawyers only: the UK Supreme Court ruling on legal advice privilege ARTICLE 1 MARCH 2013 The UK Supreme Court has upheld the current position that legal advice privilege may only be claimed in
More informationDiverted Profits Tax: Guidance
Diverted Profits Tax: Guidance This document updates the interim guidance (published in March 2015) on the Diverted Profits Tax that was introduced in the Finance Act 2015. It replaces all previously published
More informationEXPLANATORY MEMORANDUM TO THE LIFE INSURANCE QUALIFYING POLICIES (STATEMENT AND REPORTING REQUIREMENTS) REGULATIONS 2013. 2013 No.
EXPLANATORY MEMORANDUM TO THE LIFE INSURANCE QUALIFYING POLICIES (STATEMENT AND REPORTING REQUIREMENTS) REGULATIONS 2013 2013 No. 1820 1. This explanatory memorandum has been prepared by Her Majesty s
More informationVAT: Credit and Debit Card Charges
24 April 2013 VAT: Credit and Debit Card Charges Introduction The purpose of this guidance note is to update Members on the VAT treatment of charges made to customers who pay for products by credit or
More informationCapital Gains Tax Reform and the Life Assurance Industry
Capital Gains Tax Reform and the Life Assurance Industry Matthew Little takes a look at the impact of the recent changes to the taxation of capital gains On 24th January 2008 the Chancellor, Alistair Darling,
More informationStarting a Business on a Tribal Reservation
Periodically, the Tribe has been contacted by individuals interested in starting a business. The following is a general explanation of certain typical Federal and Louisiana tax issues relating to tribal
More informationIMPLEMENTING THE RESTRICTION OF PENSIONS TAX RELIEF: NAPF SUBMISSION TO THE HMT/HMRC CONSULTATION
IMPLEMENTING THE RESTRICTION OF PENSIONS TAX RELIEF: NAPF SUBMISSION TO THE HMT/HMRC CONSULTATION Executive Summary The NAPF welcomes the Coalition Government s decision to adopt a tax regime based principally
More informationTax factsheet Single premium life insurance bonds
Tax factsheet Single premium life insurance bonds The rules relating to the taxation of single premium life insurance bonds are complex. This factsheet outlines the tax treatment where a policy is held
More informationStandard Life Assurance Limited OCTOBER 2013. Principles and Practices of Financial Management for the Heritage With Profits Fund
Standard Life Assurance Limited OCTOBER 2013 Principles and Practices of Financial Management for the Heritage With Profits Fund Preface... 3 Background to the Principles and Practices of Financial Management...
More informationRESIDENTIAL LANDLORDS TAX INFORMATION
RESIDENTIAL LANDLORDS TAX INFORMATION The following notes are intended to provide a useful background for investors buying and letting individual residential properties. Independent advice, tailored to
More informationCapital gains tax for non-residents disposing of UK residential property: Final Rules
Capital gains tax for non-residents disposing of UK residential property: Final Rules Legal Alert May 2015 The United Kingdom (UK) Finance Act 2015 received Royal Assent on 26 March 2015. This included
More informationExpanding into Brazil
Expanding into Brazil Support for your Business kpmg.ie Expanding into Brazil 1 Are you looking to expand your business into Brazil? Dynamic Irish businesses are looking to new markets to expand and grow.
More informationISA qualifying investments: consultation on including shares traded on small and medium-sized enterprise equity markets
ISA qualifying investments: consultation on including shares traded on small and medium-sized enterprise equity markets March 2013 ISA qualifying investments: consultation on including shares traded on
More informationInvesting in Northern Ireland
Investing in Northern Ireland Key Tax Issues August 2012 kpmg.ie 1 1 Contents 1 Introduction 3 2 Corporation tax 4 3 Individual taxation 10 4 Other taxes 12 Appendix 1 - UK Tax Residence 13 2 1. Introduction
More informationChristopher Davis Maryland Institute College of Art January 17, 2014
Mind Your Business Miles & Stockbridge P.C. Christopher Davis Maryland Institute College of Art January 17, 2014 Firm Overview Miles & Stockbridge P.C. is a full-service law firm that represents businesses
More informationPAPER IIA UNITED KINGDOM OPTION
THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2008 PAPER IIA UNITED KINGDOM OPTION ADVANCED INTERNATIONAL TAXATION TIME ALLOWED 3¼ HOURS You should answer FOUR out of the seven questions. Each question
More informationProtecting Americans from Tax Hikes Act of 2015: Effects on Taxation of Investment in US Real Estate
Legal Update December 21, 2015 Protecting Americans from Tax Hikes Act of 2015: Effects on Taxation of Investment in On December 18, 2015, Congress passed and President Obama signed into law the Protecting
More informationInvestment Structures for Real Estate Investment Funds. kpmg.com
Investment Structures for Real Estate Investment Funds kpmg.com Contents Investment Structures for Real Estate Investment Funds 01 Who Are the Investors? 02 In What Assets Will the Fund Invest? 03 Will
More informationAugust 28, 2014. To: Department for Business, Innovation and Skills (transparencyandtrust@bis.gsi.gov.uk)
August 28, 2014 To: Department for Business, Innovation and Skills (transparencyandtrust@bis.gsi.gov.uk) Re: Transparency & Trust: Enhancing the Transparency of UK Company Ownership and Increasing Trust
More informationNew Tax Regime May Upset Your Estate Planning
New Tax Regime May Upset Your Estate Planning November 3, 2014 No. 2014-49 If your estate plan includes creating a trust in your will or you are a trust beneficiary or an estate trustee, you may be affected
More informationDeduction of income tax from interest: peer-topeer
Deduction of income tax from interest: peer-topeer lending Consultation document Publication date: 15 July 2015 Closing date for comments: 18 September 2015 Subject of this consultation: Scope of this
More informationFinancial Planning for UK Expatriates Living in Australia
Financial Planning for UK Expatriates Living in Australia WHITE PAPER SERIES The climate and lifestyle of Australia has long been irresistible to UK citizens. Of the six million migrants currently living
More informationRecent developments in the disclosure regime for economic interest in shares
Recent developments in the disclosure regime for economic interest in shares by Peter Green and Jeremy Jennings-Mares, Morrison & Foerster (UK) LLP Most jurisdictions impose obligations requiring the disclosure
More informationAn economic review of the proposed change in UK legislation for online gambling taxation. Summary view
An economic review of the proposed change in UK legislation for online gambling taxation Summary view September 2013 This report has been prepared by KPMG LLP ( KPMG ) solely for the Remote Gambling Association
More informationNew section 1411 regulations answer a number of questions
New section 1411 regulations answer a number of questions Taxpayers receive some favorable guidance in the final regulations interpreting the 3.8 percent net investment income tax Prepared by: Ed Decker,
More informationBudget 2016. Both measures are to take effect from 6 April 2017.
Budget 2016 Private Client Briefing By way of follow up to our briefing on the highlights from the 2016 Budget published on Budget day, 16 March 2016, we have set out below our more considered thoughts
More informationR&D Tax Relief. Subsea UK Technical Session. 27 April 2011
R&D Tax Relief Subsea UK Technical Session 27 April 2011 Content Overview of R&D relief 3 SME definition 9 Conditions for claiming relief 13 Qualifying Expenditure 17 Definition of R&D for tax purposes
More informationTechnical Note on overhedging and underhedging
Technical Note on overhedging and underhedging Introduction In the 2009 Budget it was announced that: 'The Government is aware of certain structured arrangements (often described as overhedging or underhedging)
More informationBrazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective
Brazilian interest payments on net equity (Juros sobre o capital próprio): an international perspective 1. Interest on Equity and Dividends: the Brazilian perspective Brazilian companies have two main
More informationCBI Scotland welcomes the opportunity to respond to the Scottish Government s paper Corporation Tax: Discussion Paper Options for Reform.
SUBMISSION FROM CBI SCOTLAND CBI Scotland welcomes the opportunity to respond to the Scottish Government s paper Corporation Tax: Discussion Paper Options for Reform. We note that the questions contained
More informationA Guide to the QFC. Collective Investment Schemes Regime
A Guide to the QFC Collective Investment Schemes Regime Disclaimer The goal of the Qatar Financial Centre Regulatory Authority (Regulatory Authority) in producing this document is to provide a guide to
More informationTaxation of Cross-Border Mergers and Acquisitions
KPMG INTERNATIONAL Taxation of Cross-Border Mergers and Acquisitions Panama kpmg.com 2 Panama: Taxation of Cross-Border Mergers and Acquisitions Panama Introduction The signing of several Free Trade Agreements
More informationThe Advantages of the UK as a Location for a Holding Company. David Gibbs May 2015
The Advantages of the UK as a Location for a Holding Company David Gibbs May 2015 The UK is an attractive location to site an international holding company since not only does it offer a relatively stable
More informationAPB ETHICAL STANDARD 5 NON-AUDIT SERVICES PROVIDED TO AUDIT CLIENTS
APB ETHICAL STANDARD 5 NON-AUDIT SERVICES PROVIDED TO AUDIT CLIENTS (Re-issued December 2004) Contents paragraph Introduction 1-4 General approach to non-audit services 5-38 Identification and assessment
More informationCONSOLIDATED INVESTMENT AND ENTERPRISES LIMITED V THE COMMISSIONER OF INCOME TAX (PRIVY COUNCIL)
CONSOLIDATED INVESTMENT AND ENTERPRISES LIMITED V THE COMMISSIONER OF INCOME TAX (PRIVY COUNCIL) 1995 PRV 27 1996 MR 221 Privy Council Appeal No. 27 of 1995 Consolidated Investment and Enterprises Limited
More informationHong Kong Taxation FUNDS AND FUND MANAGEMENT 2010. 3.1 Taxation of funds. Exemption for authorized or regulated funds. The first exemption applies to:
Hong Kong Taxation FUNDS AND FUND MANAGEMENT 2010 3.1 Taxation of funds Funds, like other entities, are prima facie subject to Hong Kong tax (currently at the rate of 16.5 percent for the 2009/2010 year
More informationCONTINUING ISSUES FOR U.S. LLCS INVESTING INTO CANADA
MARCH 2010 CONTINUING ISSUES FOR U.S. LLCS By Elinore Richardson and Stephanie Wong TAX LAW BULLETIN The Canada Revenue Agency ( CRA ), on February 11, 2010, issued a Technical Memorandum on the application
More informationAddressing UBTI Concerns in Capital Call Subscription Credit Facilities
Legal Update November 2012 Addressing UBTI Concerns in Capital Call Subscription Credit Facilities A subscription credit facility (a Facility), also frequently referred to as a capital call facility, is
More informationUnderstanding with profits
Understanding with profits Stakeholder plans that started before 10 July 2006 This booklet tells you how we manage our with profits business for Stakeholder plans that started before 10 July 2006. A Stakeholder
More informationTax Court Lowers Canco s AR Factoring Transfer Price
Tax Court Lowers Canco s AR Factoring Transfer Price January 20, 2014 No. 2014-02 Canadian multinational companies may want to note the implications of the recent transfer pricing case McKesson Canada
More informationTax guide For individuals coming to the UK
Tax guide For individuals coming to the UK Contents Introduction..01 UK residency rules.02 Domicile.. 04 UK taxation of individuals.. 05 Remittance basis of taxation...09 Pre-immigration planning for non-uk
More informationTAXATION OF FOREIGN INCOME ISRAELI RESIDENTS
TAXATION FOREIGN INCOME FELDMAN BRODY & Associates January 2010 No part of this publication may be reproduced without permission Website: www.feldmanbrody.com While every effort has been made to ensure
More informationRevised discussion draft on Action 6 (Preventing Treaty Abuse)
Marlies de Ruiter Head Tax Treaties, Transfer Pricing and Financial Transactions Division OECD / CTPA By Email taxtreaties@oecd.org Our Ref 12 June 2015 GT / OL Dear Ms de Ruiter Revised discussion draft
More informationUnderstanding with profits. With Profits Pension Annuity
Understanding with profits With Profits Pension Annuity This booklet tells you how we manage our With Profits Pension Annuity business only. There are separate Understanding With Profits booklets for other
More informationOECD BEPS Project - Impact on UK tax law. Munich, 21 April 2016
OECD BEPS Project - Impact on UK tax law Munich, 21 April 2016 Slide 3 5 Recent tax developments in the UK 6-8 Action 2 - Hybrid mismatch arrangements 9 10 Action 3 - CFC Rules 11 12 Action 4 - Interest
More informationTax Efficient Giving for Americans Resident in the United Kingdom
Making a Difference Tax Efficient Giving for Americans Resident in the United Kingdom Americans resident in the United Kingdom have particular income tax problems with respect to structuring tax efficient
More informationtax plus Welcome to Tax Plus a topical look at tax summer 2014
tax plus summer 2014 Welcome to Tax Plus a topical look at tax Within this edition of Tax Plus, we cover a diverse range of topical issues, aiming to keep you up to date with the latest happenings in tax
More informationBelgium in international tax planning
Belgium in international tax planning Presented by Bernard Peeters and Mieke Van Zandweghe, tax division at Tiberghien Belgium has improved its tax climate considerably in recent years. This may be illustrated
More information