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Considerations when planning taxefficient structures
Technical input Perceived Aggressiveness of the planning
Risk of HMRC challenge
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Risk of challenge increases where: Income arises or gains accrue to non-UK
resident entities
Basis of challenge tends to focus on: 1. is the trust/ company in fact non-UK
resident;
2. possible application of the transfer ofassets provisions;
3. possible application of the settlementprovisions or the capital gains tax attributionof gains provisions
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First Step for HMRC is informationgathering: In relation to structured avoidance schemes,
there will have been a DOTAS notification and
scheme users are required to include theDOTAS number in their tax returns.
Therefore HMRC is aware of both the scheme
and the users.
Scheme users should expect to receiveinformation gathering correspondencefrom HMRC
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Where Domicile or Residence is relevant:
Expect to receive a wide ranging request for
information relating to all aspects of thetaxpayers life
Need to provide all the information?
The onus is on taxpayer to show that he is
resident or domiciled in the chosen territory
Therefore, it is advisable to providesupporting information.
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Where offshore structures areconcerned, expect to receive the
standard Transfer of Assets Questionnaire This is a document approximately 3 pages
long with requests for broad ranginginformation
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Do you need to provide all informationrequested?
No! Always check the relevance of the
information sought to the tax in issue
It is VERY IMPORTANT to engage with HMRC
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This takes several forms including:
Responding to HMRC letters
Response should be: Within the agreed timescale;
Informative where the information sought is relevantto the tax in issue; or
Seeking clarification from HMRC about the relevance
of the information sought;
Agreeing to Meetings
Go prepared with information;
Advisory team should attend.
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Information Gathering Stage is importantin resolving conflicts:
Builds mutual trust; Clarifies facts;
Clarifies continued areas of dispute, if any;
Can assist in reaching an amicable
settlement so that litigation is avoided.
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In the event of litigation:
Early engagement with HMRC will have
pinpointed areas of dispute; Litigation at the Frist tier Tribunal is very
important in establishing the facts
No new facts can be introduced at the later
stages of appeals; All persons who wish to give evidence must:
Provide written Witness Statements;
Attend the hearing to be cross examined.
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First TierTribunal
Appeal on fact and law
UpperTribunal
Appeal on Point of Law only
Need Permission to appeal
Court ofAppeal
Appeal on Point of Law only
Need Permission to appeal
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Appeal to the Supreme Court
Appeal on Point of Law only
Need Permission to appeal Very rare in practice
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AGENDA
THE MAURITIUS INTERNATIONAL FINANCE CENTRE
ECONOMIC OVERVIEW
DOING BUSINESS ENVIRONMENT
THE INTERNATIONAL FINANCE CENTRE
By Dhaneshwar Damry
CEO Bhumishq
The presentation represents the views of the author
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Star and Key of the Indian OceanEconomic
Overview
Official Language:
English
Area:
2,040 sq km (788 sq
miles)
Population:
1,288,684 (2011)
Population density:
632 per sq km
Exclusive Economic
Zone:
1.9 million km+ 396,000 km joint
extended shelf with
Seychelles
Capital:
Port Louis
Government:
Republic established in
1992.
Gained independence
from
the UK in 1968.
Key Facts
GDP Growth:
3.5% (2011)
Unemployment:
7.9% (3rd Qu 2012)
Inflation:
3.9% (2012)
Repo Rate:
4.9% (as at date)
Legal System:
Hybrid LegalSystem
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Spearheading InnovationEconomic
Overview
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A Competitive Platform to do BusinessDoing Business
Environment
Occupation Permit
Taxation Land & Property AcquisitionStart Up
Exchange Control
Start a business in 1
working day
No minimum
capital requirement
100% Foreign
ownership
Homogenised
15% corporate
tax
Personal
Income tax at
15%
Local
government tax
Acquisition of
property
by
non-citizen
Right to Live
and
Work in
Mauritius
Free
movement
ofCapital
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A Competitive Platform to do BusinessDoing Business
Environment
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Global RecognitionDoing Business
Environment
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Global RecognitionDoing Business
Environment
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Government Vision & Strategy for AfricaMauritius
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WHY MAURITIUS FOR AFRICA?Mauritius
Offerings
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The Regional Financial Platform of ChoiceMauritius
Offerings
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The Regional Financial Platform of ChoiceMauritius
Offerings
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The Regional Financial Platform of ChoiceMauritius
Offerings
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Access to regional marketsMauritius
Africa markets
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Double taxation avoidance agreementsMauritius IFC
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International Promotion and Protection agreementsMauritius IFC
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www.indiaincorporated.com @indiaincorp
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The Isle of Man
Financial Centre of Excellence forIndian Families
Isle of Man
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Isle of Man
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Fedelta header
Close proximity to the UK Excellent communications, both physical and
electronic
Stable Government
Economic stability and track record
Government and industry partnership
Not part of the UK or EU
The Isle of Man
Isle of Man
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Wide range of tools available for structuring
Globally recognised trust law
Modern and developing company law
Government actively promoting the sector
Isle of Man
Legislative Advantages
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Fedelta header
Companies 1931 v 2006
Trusts
Foundations
Pensions Shipping
Aircraft
IT
Isle of Man
The Tools
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Fedelta header
Internationally compliant
Wide range of financial support services
available
Well regulated corporate, trust and pensionsindustry
Cost advantages One stop shop advantages
Isle of Man
The Finance Sector
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Fedelta header
The jurisdiction
The infrastructure
The legislation
The tools The skills
Isle of Man
The Decision
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Isle of Man
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In association with
Media Partners
Organised by
Supporting Partner Supporting
fo r more in fo :
www.indiaincorporated.com