The Pending Paradigm Shift

Without trying to sound cliché, Karl Marx once wrote: “History repeats itself, first as tragedy, second as farce.” This seems to be the state Western liberal democracies find themselves in these days. Big governments with bloated bureaucracies, high taxes and insatiable demands for more revenues, massive public debt, political polarization and constant social unrest are now the ‘new normal’ for North America and Western Europe. The Biden Administration has announced an unprecedented ‘progressive’ spending program. Europe is not far behind. …

Wealthy beware

I would argue that HNWIs both in Asia and the Americas should now start to look at effective investment migration strategies that allow one to hedge their bets. As this article in Asia Nikkei and the legislative proposals of Senators Warren and Sanders in the United States suggests, the wealthy are in for a period of great uncertainty. Governmental action everywhere over the last twelve months has pushed the world towards economic stagnation, and the tax man shall be quite…

For the 99.5% Act

On March 25, 2021, Senator Bernie Sanders introduced legislation entitled “For the 99.5% Act.”  The aim of the bill is to tax the fortunes of the top 0.5% of wealthy Americans. This is the first piece of legislation introduced since Joe Biden came into office and is designed to lower the U.S. federal estate tax exemption.  Highlights include: regarding personal wealth: Reduce the U.S. federal estate tax exemption to USD $3.5m for U.S. citizens / domiciliaries (Note: There is no…

Crypto & Taxes

Saw an interesting piece on crypto-currencies and tax regimes in Wealth Management.  Worth the read.

FATCA and Foreign Bank Accounts

In the waning days of the Trump Presidency a little known act – the “Combating Money Laundering, Terrorist Financing, and Counterfeiting Act of 2019” – was passed into law as part of the reconciled National Defense Authorization Act for Fiscal Year 2021 (H.R. 6395). Overcoming a Presidential Veto, the passed enactments ushered in broad changes to US anti-money laundering, financial crime and tax evasion laws. As it stands, today America’s treasury and justice departments can subpoena any account records from…

NY Beware. Americans are looking elsewhere.

Came across an interesting piece in the New York Post regarding NY state legislature proposing an additional USD $7bn in new and increased taxes on businesses and the ultra wealthy. What legislatures continually fail to grasp is the fact that such additional taxes just cause capital flight.  Read more.

Democrats push for a ‘Wealth Tax’

The United States has never had a wealth tax. European nations have had such things, but many of repealed them over the last few decades. Simply put, wealth taxes don’t work for they spur capital flight. That has not deterred Senator Warren (D-MA) with Reps. Pramila Jayapal (D-WA) and Brendan Boyle (D-PA) from introducing legislation to create a flat 2% annual tax on all household worth above $50 million, which would rise to 3% for anyone above $1 billion. Senator…

US taxes set to rise

With the Democrats now controlling Congress and the Presidency, the new Biden Administration is set to fundamentally change the nature of tax. How this will impact Americans and business remains an open question. What is certain is the fact that wealth preservation and tax structuring will become primary motivators for the migration industry over the next four years. It is only a matter of time before other countries start to look to America for inspiration and guidance, as governments everywhere…

US ends UBO privacy

As this year’s US defence appropriations act demonstrates, there seems to be a growing international trend on the part of governments to create a baseline in terms of disclosure of beneficial ownership. How a new Biden-Harris administration will act in its first 100 days will be quite telling indeed. All of this will have a profound impact for private wealth clients and tax structuring professionals. As governments become increasingly dependent upon sourcing additional tax revenues, investment migration will no longer…

Argentina and taxes

Argentinians normally look to Uruguay and then the United States when thinking about tax planning. Those routes seem now insufficient, given the political shift. Arguably, Latin Americans, and even North Americans, with means should now consider wealth planning options that utilise residency options, as tax matters are only set to get worse. Read More.

Tax their obscene wealth.

With the Democrats now solidifying around a Biden-Harris ticket, the U.S. faces a real choice. Continue with the Trump-Pence paradigm or reject it in favour of something just as earth shattering. Never has politics been so polarising and the World must wait for America to decide. Those with means now need to consider backup strategies that preserve wealth and opportunity. Read More.

US expands restraints on transfer of sensitive good and technologies

With concerns over challenges posed by China, the US government recently introduced new measures designed to enact control over the transfer and use of US goods and technologies both in the US and abroad. Applicable to emerging market M&A and joint ventures, these new measures manifest as two new laws – The Foreign Investment Risk Modernization Act (FIRRMA) and the Export Control Reform Act (ECRA). FIRRMA clarifies and expands the authority of the Committee on Foreign Investment in the United…

US puts WTO into crisis mode

The US has put the WTO Appellate Body into crisis mode. Since the advent of the Trump administration, the US has consistently blocked appointments and reappointments to the WTO Appellate Body. As a result, the appellate body has now shrunk to four from its original seven members. In October this year, it is expected that this will go down to three members. WTO rules specify that three members must server on a case, selected by rotation. This will be meaningless in…

US customer due diligence regime goes live

US banks have begun applying the US Treasury’s new customer due diligence regime, requiring them to verify the identities of new business customers’ beneficial owners, and report them to law enforcement agencies. The rules were finalised two years ago, under the Obama administration, after almost two years of consultation. But implementation was deferred until now, to give the banks time to implement the new system. A beneficial owner is defined as anyone who owns 25 per cent or more of…

Oil and gas industry strengthens

As the oil and gas industry strengthens with eyes on rising commodity prices, costs and emerging technologies, there are certain trends developing for 2018 that the industry should also keep in mind. Will 2018 be the year for the digital revolution takeoff, transforming talk into lucrative plans to help drive growth? Will natural gas make strides toward becoming the dominant fuel of the future, replacing oil? How will U.S. shale perform with still struggling oilfield service …companies and equipment manufacturers…