Current as of 28th January 2021
Service of the Month – International Tax
Over the next few editions of S&W Insight we will be going through the various services that we can provide to our clients. You may not be aware of some of the things we can do for you, so we wanted to ensure you know what services we are able to provide, should the need arise.
In 2010 we joined the international accountants network called Krestons. The Krestons network is in over 110 countries and has nearly 200 member firms. All our common trading partners are included in the countries represented, as well as a lot of other more obscure countries. We now have the ability to access competent professionals in all parts of the globe to ensure our clients have access to the best advice no matter what their international needs are.
Some recent examples of client needs across the globe, that we were able to satisfy, include
- Australian resident software company wishing to set up in the US and trying to determine what type of arrangement and entity best suits their needs under the US tax laws. Residency and permanent establishment issues needed to be determined to ensure tax would be not levied in the US and if so what amount. Once the entity decision was resolved there was a need to work out which state of the US the entity was to be set up in taking into account the different tax systems in each state. All of this was resolved with discussions with a US Krestons member on the east coast of the US. They now also look after the ongoing compliance work for the client.
- Australian resident company in the IT sector, has set up in various countries around the world including Singapore and countries in Europe, now wants to set up in the US. The important issue here was what the after-tax profit would be from the profit made in the US, once it is remitted back to Australia. It was important to ensure that double taxation was avoided, and any tax paid in the US was available as a credit in Australia if at all possible. We liaised closely with our Krestons network member in San Diego to ensure the optimal result was achieved after all taxes were levied in both countries.
- This client has a property in London owned by an Australian trust and we liaised closely with our Krestons member in London to navigate the complex laws in the UK. These include income tax, capital gains tax, inheritance tax and other local property related taxes. The rules have changed significantly in the UK for property ownership in the last 5 years, so it was important to have access to an advisor that had a deep knowledge of the UK tax laws and could advise our clients what needed to be done. Our client is now in the best possible position to ensure all their statutory responsibilities are attended to, as well as receiving proactive advice on what the best options are going forward.
- A client of S&W has moved back to Belgium as a tax resident of that country, but still has significant business interests in Australia which will continue to provide an income stream to him over coming years. We liaised with our Krestons network member in Belgium to determine how the dividends, interest, trust distributions and royalties income that would be paid from Australia and therefore taxed in Belgium. This enabled us to ensure the structure of his affairs, both in Australia and in Belgium was done in the optimal way.
These are just a few examples of how the Krestons network members have been able to help our clients. The network provides us with access to professionals who we know personally, as we meet with them at network conferences each year and are required to go through continuing quality assurance procedures as set down by the head office of Krestons in London.
If you are thinking about expanding into, or setting up in, foreign markets please contact us to help you manage the process. Cross border structures are complex at the best of times. It is important to ensure you have access to the right advice in both countries. The Kreston network membership gives us access to the professionals overseas that you will need. Please discuss with your client manager should you be contemplating expansion into foreign markets.
THIS NEWSLETTER HAS BEEN PRODUCED BY STANLEY & WILLIAMSON AS A SERVICE TO ITS CLIENTS AND ASSOCIATES. THE INFORMATION CONTAINED IN THE NEWSLETTER IS OF GENERAL COMMENT ONLY AND IS NOT INTENDED TO BE ADVICE ON ANY PARTICULAR MATTER. BEFORE ACTING ON ANY AREAS CONTAINED IN THIS NEWSLETTER, IT IS IMPERATIVE YOU SEEK SPECIFIC ADVICE RELATING TO YOUR PARTICULAR CIRCUMSTANCES.
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