INTERNATIONAL TAX

Heywood Advisory can assist in reducing Wealth Tax - Capital Gains - Income tax – Inheritance taxes – Gifts tax – Social Security costs – Corporation tax – Withholding Taxes –  and Residence and Citizenship Advice

The taxation of corporations and individuals have has been subject to considerable changes since the Great Financial Crisis of 2008.

Prior to that time there were all sorts of loop holes and constructions which were exploited by those that knew about them.  Due to the huge deficits that governments were forced to take to prop up the banking system, and in re-stimulating their economies, the increase in taxes and the more stringent application of the law, plus new measures introduced, have all had a marked effect. Various anomalies between countries have also been closed down. An example of this is the tax of gains on property in the UK of non-residents and non-residents companies, where before they were not taxed.

In addition the non-disclosure of assets or profits became a major issue and starting in the USA the FACTA rules were introduced. The penalties for non-disclosure are draconian for US citizens. Swiss banks were asking US clients to take their bank accounts away!

Now the European rules under the Common Reporting Standards – CRS – have come into force on a stricter basis than FACTA. This means that as one banker put it – there is nowhere to hide these days. Probably quite right since a legal route was always the best. The automatic disclosure under CRS means that the tax payer would be subject to the rules and penalties of their country of residence, and nationality in the case of US citizens.

Corporations have been able, and in certain situations still are, able to exploit international tax differences.

This does not mean that there are no longer methods to reduce the impact of tax of one’s affairs, but they have to be carefully considered. See the Residence Citizenship and Taxes page for advice on low tax and sunshine countries.

As one English judge put it – only a fool arranges his affairs so as to pay the maximum amount of tax - but such arrangements should always be legal.

Heywood Advisory can be of help to clients in many areas of taxation and across many countries.