As a boutique law firm, we also frequently assist on matters that are outside of these core areas, if our clients’ needs require. Therefore, please do not hesitate to contact us if you need assistance with a legal matter not listed below.
Managing tax reporting obligations efficiently has become a complex and daunting task for many high-net-worth individuals and families, particularly if several jurisdictions are involved. As tax laws and regulations are constantly changing, it can be difficult to stay informed of all tax and reporting obligations that are required and how these are applied on a practical level. This also applies to financial institutions that are required to provide tax reporting information for their own clients who have tax obligations in other jurisdictions.
Tax is a consideration that affects many aspects of everyday life, from where we may choose to live to our income and assets and of course any commercial transactions we conduct. This is especially true in the case of high-net-worth individuals, for whom tax burdens are more significant and/or who hold a diverse portfolio of assets. It can often be difficult for individuals to keep up with the latest tax law and regulatory developments in all the relevant jurisdictions in which they hold assets or receive income, and to understand how these are applied on a practical level.
Given the extent and complexity of tax obligations in most jurisdictions today, it is becoming increasingly important for individuals and families to take a more proactive approach to managing, protecting and growing their wealth and assets. Fortunately, there are a multitude of options available to individuals to do this, from exploring different investment structures and diversifying their assets, to simply relocating assets to other jurisdictions.
As the international fiscal legal environment is becoming increasingly complex, wealthy individuals and families often look for long-term, innovative solutions to protect their assets and legacy. The use of trusts, foundations, insurance solutions and other instruments can be a useful method of securing long-term asset protection.
Many of our clients are family business owners and/or stakeholders in corporate entities, which require particular attention when considering wealth management planning, alongside our clients’ other personal assets. Family businesses are unique in that their management has to take into account legal requirements, considerations of the relevant business markets at the time, and considerations of a more personal nature due the families and generations involved in the business.
Having real estate as an asset class is an important consideration when developing any wealth management or tax planning strategy. Whether real estate is held or purchased for residential, commercial or investment purposes, it can impact current and future tax liabilities of individuals and their families and eventually their estates. The jurisdiction in which real estate is held can also have a large impact, given that different countries often have significantly different wealth, inheritance, and estate tax regimes.
Given the complexity of tax reporting and compliance requirements today, particularly when these are owed across different jurisdictions, it is not uncommon for individuals to find themselves in dispute with government tax authorities over tax-related issues. This can be due to a number of reasons, ranging from confusion around a particular tax regulation to disputes regarding the location of tax residency or simply a misunderstanding on the part of the client. When tax authorities challenge disclosures or tax filings (or the lack of), our lawyers review the client’s tax situation and compliance requirements, and negotiate on their behalf to resolve any disputes in the most efficient way possible to protect their assets and overall interests.
As so many of our clients have international backgrounds and assets, complexities frequently arise as to where they and their families are resident or domiciled and what tax obligations they owe as a result. We guide clients through the relevant questions and issues to help them determine their domicile status and tax obligations, and to assist them explore ways in which they can optimize their situations in order to address wealth and succession planning considerations. In particular, this can often be achieved by modifying tax residency through expatriation and alternative citizenship options.