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Posted By: Jessica Augustin | 24 Jul 2017

Common Reporting Standard influencing Investors Decision?

 The USA & Common Reporting Standard 

The USA has long been a business and tax friendly haven for foreign investors despite many competitor jurisdictions for investment funding. In addition, there were some irrational fears of investing in or through the USA because of “heavy handed” tax initiatives. These included standards like FATCA, which the USA has employed to root out its own citizen tax avoiders.However, now the rest of the world has introduced their version of FATCA known as the Common Reporting Standard (“CRS”) .

The Consequence of the Common Reporting Standard

The Common Reporting Standard is more burdensome than FATCA, in terms of what is reportable. This means loss of privacy and confidentiality for entrepreneurs that choose to invest with foreign financial institutions. Thus, there is now renewed interest in investing as the USA remains the only OECD jurisdiction that has not adopted CRS. Clients of US financial institutions can still enjoy the privacy benefits that they will lose by investing in non-US jurisdictions.

Nevertheless, it can be assumed that US financial institutions will not welcome investors who wish to use those privacy and confidentiality benefits, for tax avoidance and other nefarious purposes.

US Trust Advisory Services LLC: Assisting with foreign investment into the USA

US Trust Advisory Services LLC has been specifically established to assist foreign fiduciaries and foreign investors to establish US Trusts and US corporations. These include but are not limited to single member LLCs, in a tax efficient and business friendly way.

Indeed, a single member LLC, with a foreign corporate member, could be exempt from US tax reporting if it has no US source income. Similarly, a US Hybrid Trust can also be exempt from US reporting as it is designated to be a foreign trust for US tax purposes.

Minimizing Common Reporting Standard & FATCA reporting

Even when there is US source income there are means to reduce the overall tax burden and the use of tax treaties can lower the withholding rate on investment income. UTAS can also assist to minimize Common Reporting Standard reporting and structure to reduce and/or eliminate FATCA reporting too.

Most clients benefit because UTAS principals have considerable international experience. UTAS also understands the needs of foreign investors, as well as enjoying the requisite US legal and tax knowledge.

The CEO of US Trust Advisory Services LLC (“UTAS”) Ed Rogers is highly experienced financial services professional. Ed has the distinction of having held senior level roles with trustee & corporate service provider companies in 16 jurisdictions. Being a trust specialist, he held positions as Head of Trust Services for 2 International Groups.  Offshore Consulting Services Limited (“OCSL”), is owned by Ed. OCSL is an independent and international wealth planning services company that acts as the sole member of UTAS. UTAS delivers tax and legal advice for US entities only while OCSL delivers wealth planning advice for all non-US entities.

About the Author;

Of counsel to UTAS and OCSL is Robert Payne. Being a highly experienced US trusts and tax attorney, Robert started his career as a Special Prosecutor. His role focused on investigating US tax crimes for the US government. Robert then moved into the private sector and spent many years with Price Waterhouse Coopers at their various worldwide offices. He has delivered tax counsel to multi-national companies, ultra-high-net worth families, and foreign governments. In the latter stages of his career, he was the US Tax and Trust Director for the multi-office Amicorp Group. Subsequently, Robert became the FATCA and CRS reporting specialist, for Amicorp, and helped develop the Group’s reporting guidelines. Robert is also fluent in Spanish as well as English.

 

 

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