Over the past few years the wealth planning industry has been facing challenging circumstances. A variety of factors, including budgetary pressures, increased scrutiny from tax authorities and public outrage after high-profile offshore financing scandals, mean companies around the globe are under pressure to bring their offshore assets and operations back onshore.
Tax authorities, for example, are set on “repatriating” operations and profits. In the US, tax authorities have made it easier for companies to repatriate their profits. As a result, there is a question mark over whether it still makes sense for US companies to do business via offshore vehicles. If other countries follow suit in a bid to strengthen home-grown corporates, the case for offshoring may continue to diminish.
It’s also worth bearing in mind that setting up a new entity is often cheaper than migrating an existing one and, in some cases, can take less time. To make the most of those benefits without any interruption to business operations it’s vital to have a proper onshoring plan in place.The first is figuring out who is migrating. Is it a holding company, a commercially operational division, or an R&D and IP holding? It is also important to know what the holding and control structure is, be that direct control by individuals, a family trust or foundation, or a listed or institutional holding.
With those questions answered, it’s key to get a good adviser in the country of immigration. The adviser will tell you what documents you should provide, whether there is a requirement to hand over audited financial reports, and whether agreements, contracts, IP and other assets and rights need to be assigned.