CORPORATE RESTRUCTURING (INTERNATIONAL)

Corporate restructuring should concentrate on structural commerciality, combined with the implementation of normal commercial business transactions, located in a tax-effective jurisdiction and supported by a verifiable operational website address.

This identifies the need to concentrate on commercial business structures and not schemes involving tax havens.

FICSGlobal undertook comprehensive research and created a background library of legal protocol relating to tax efficient jurisdictions and then compiled an extensive summary of the respective regulations in relation to trusts and corporations’ law, the effective use of specialised partnerships, taxation and general local regulatory information pertaining to each jurisdiction. 

Research was then widened to include Double Taxation Agreements (DTAs).

This highlighted the need to:

Ø  Align residential domicile legislation with the relevant treaty planning;

Ø  Assimilate effective use of tax efficient jurisdictions;

Ø  Identify normal commercial business transactions which can be implemented in a transparent commercial manner;

Ø  Leverage the fact that international law overrides domestic law.

The Attribution and Imputation of income

The elimination of 'attribution and imputation' of income to resident based taxpayers can only be successfully achieved by nullifying the far reaching tentacles of the following regulatory mischief-makers:

o   International anti-avoidance rules

o   Controlled foreign companies

o   Controlled foreign trusts

o   Dominant Purpose

o  Transferor trust laws

o   Transfer pricing

o   Thin capitalization

o   Income source rules

o   Part IVA (relating to dominant purpose)

o   Fringe Benefits tax

o   Goods and Services tax

o   Capital Gains Tax

o   Mutual Legal Assistance Treaties (MLAT's)

o   Financial reporting of banks

o   Managed Investments Act

o   United Nations

Restructuring should interlock, overlay and cater for structural risk management by allowing for future legislative or regulatory changes which could affect business longevity.

Structures should ideally allow the business to maximise its financial efficiency using tax-effective revenue-based commercial transaction.