More and more business activities cross borders. The internet presents us with opportunities to buy products in Asia or the USA while we stay in Europe or Australia. Even when shipment is included, an interesting profit margin or purchasing benefit can be achieved. Sometimes business activities are outsourced to other countries, and those who take globalisation to another level can incorporate a company in another jurisdiction. Recently, global tax authorities are getting a severe interest in what entrepreneurs do in other countries, and then specifically tax havens. Hence the beginning of FATCA, CRS and the automatic exchange of information.
Our daily practice involves recovery services for investors, companies and high net worth individuals who retrieve sooner or later a substantial part of their assumed lost assets. Sometimes the tax regime changes during the operation. This means that legitimate, firm and profound solutions must be offered to those in such a situation.
Without going into too much detail, FATCA and CRS focus on US persons, financial institutions on non financial institutions. Furthermore, there is a seperation in foreign entities and active and passive businesses. All having different rules.
Information sharing should not be a problem when the standards are followed. The regulations offer enough leads to a sound and legitimate solution. It is noteworthy that one cannot afford mistakes and just waiting for things to change will only make matters worse.
At Legal Floris LLC, we can only share our modus operandi with our customers. You are required to sign a non disclosure agreement as part of our contract since we want to avoid bunglers who can’t grasp the complete picture to destroy the financial future of our customers. Common reporting standards and FATCA is serious business. It should be treated as such.