Preferred offshore hubs for Indians

In association with
Organised by
www.indiaincorporated.com @indiaincorp
7th April, 2014
Considerations when planning tax
efficient structures
Technical input
Perceived Aggressiveness of the planning
Risk of HMRC challenge

Planning can be regarded as aggressive
where:
Off the shelf avoidance schemes are used;
Where the figures involved are large;
Where the difference between a tax charge
and no tax charge is:
the residence of the trust/ company or
the residence and /or domicile of the
taxpayer
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 of
assets provisions;
3. possible application of the settlement
provisions or the capital gains tax attribution
of gains provisions

First Step for HMRC is information
gathering:
In relation to structured avoidance schemes,
there will have been a DOTAS notification and
scheme users are required to include the
DOTAS number in their tax returns.
Therefore HMRC is aware of both the scheme
and the users.
Scheme users should expect to receive
information gathering correspondence
from HMRC

Where Domicile or Residence is relevant:
Expect to receive a wide ranging request for
information relating to all aspects of the
taxpayers 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 provide
supporting information.
Where offshore structures are
concerned, expect to receive the
standard Transfer of Assets Questionnaire
This is a document approximately 3 pages
long with requests for broad ranging
information
Do you need to provide all information
requested?
No!
Always check the relevance of the
information sought to the tax in issue
It is VERY IMPORTANT to engage with HMRC

This takes several forms including:
Responding to HMRC letters
Response should be:
Within the agreed timescale;
Informative where the information sought is relevant
to 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.


Information Gathering Stage is important
in 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.
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.

First Tier
Tribunal
Appeal on fact and law
Upper
Tribunal
Appeal on Point of Law only
Need Permission to appeal
Court of
Appeal
Appeal on Point of Law only
Need Permission to appeal
Appeal to the Supreme Court
Appeal on Point of Law only
Need Permission to appeal
Very rare in practice

In association with
Organised by
www.indiaincorporated.com @indiaincorp
AGENDA




THE MAURITIUS INTERNATIONAL FINANCE CENTRE
ECONOMIC OVERVIEW
DOING BUSINESS ENVIRONMENT
THE INTERNATIONAL FINANCE CENTRE


By Dhaneshwar Damry
CEO Bhumishq
dhaneshwar.damry@bhumishq.com



The presentation represents the views of the author
Star and Key of the Indian Ocean
Economic
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 Legal
System
Spearheading Innovation
Economic
Overview


A Competitive Platform to do Business
Doing Business
Environment


Occupation Permit
Taxation Land & Property Acquisition
Start 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
of
Capital


A Competitive Platform to do Business
Doing Business
Environment


Global Recognition
Doing Business
Environment


Global Recognition
Doing Business
Environment


Why Africa?
Mauritius


Government Vision & Strategy for Africa
Mauritius


WHY MAURITIUS FOR AFRICA?
Mauritius
Offerings


The Regional Financial Platform of Choice
Mauritius
Offerings


The Regional Financial Platform of Choice
Mauritius
Offerings


The Regional Financial Platform of Choice
Mauritius
Offerings


Access to regional markets
Mauritius
Africa markets


Double taxation avoidance agreements
Mauritius IFC


International Promotion and Protection agreements
Mauritius IFC


Private wealth management
Mauritius IFC
Offerings


In association with
Organised by
www.indiaincorporated.com @indiaincorp
The Isle of Man
Financial Centre of Excellence for
Indian Families
Isle of Man
Isle of Man
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
Fedelta header
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
Fedelta header
Companies 1931 v 2006
Trusts
Foundations
Pensions
Shipping
Aircraft
IT

Isle of Man
The Tools
Fedelta header
Internationally compliant
Wide range of financial support services
available
Well regulated corporate, trust and pensions
industry
Cost advantages
One stop shop advantages

Isle of Man
The Finance Sector
Fedelta header
The jurisdiction
The infrastructure
The legislation
The tools
The skills


Isle of Man
The Decision
Isle of Man










In association with
Media Partners
Organised by
Supporting Partner
Supporting
www.indiaincorporated.com @indiaincorp
for more info:
www.indiaincorporated.c
om