In the end of 2018, there has been a number of changes in the legislation of common tax-free jurisdictions, which were ambiguously perceived by the public: on the one hand, there was a unification of mandatory requirements for economic substance to legal entities between the British Virgin Islands, the Bermudas, the European Union and another countries, and on the other hand, there were significant risks of negative consequences for companies, its beneficiaries and managers.
Cryptocurrency, blockchain, mining and ICO became one of the most discussed topics in 2017.
A lot of investors have managed to multiply their assets on the wave of “cryptocurrency fever” by incorporating a new type of assets – digital assets (Bitcoin, Ethereum, etc.) into their investment portfolio. What are the risks of investments in this kind of assets?
On Wednesday, August 2, 2017, President Trump signed into law “the Countering America’s Adversaries Through Sanctions Act” (the Act). The Act significantly expands and codifies US sanctions targeting Russia, and it adds several measures to the already comprehensive US sanctions on Iran and North Korea.
Under the Beneficial Ownership Secure Search System Act, 2017 information about beneficial owners of corporate and legal entities are entered into the BOSS system by the Registered Agent. Moreover, there is a powerful new weapon into the anti-corruption arsenal – Unexplained Wealth Orders.
DMCC Single Family Office (“DMCC SFO”) – a company with limited legal capacity (license) in the jurisdiction of the United Arab Emirates, with the possibility of a subsequent withdrawal of funds back to the account of the Client.
With the spread of the global trends in the fight against the aggressive tax planning and tax avoidance, the publication of the most suspicious schemes on the websites of the tax authorities in the different countries is becoming a quite common practice.
The European Commission has welcomed the entry into force of rules to require EU member states to automatically exchange information on all new cross-border tax rulings that they issue.
Another important step to implement the OECD Common Reporting Standard (CRS) was taken, with a further 350 bilateral automatic exchange relationships being established between over 50 jurisdictions committed to exchanging information automatically pursuant to the OECD Common Reporting Standard (CRS), starting in 2017.
The Criminal Finances Bill, introduced to the Parliament of The United Kingdom on October 13, 2016, contains provisions for Unexplained Wealth Orders (UWOs) to help recover assets that are the result of illicit activity. The principles of UWOs are strongly supported by leading anti-corruption experts in the UK, including Transparency International (TI)
The first exchanges of information between tax authorities will take place next year, with all CRS jurisdictions exchanging information by 2018. And we are now starting to see how tax authorities expect this information to change the taxpayer/tax authority dynamics.