MILSTED LANGDON: BUSINESS ADVANTAGE PEACE OF MIND MILSTED LANGDON INTERNATIONAL SERVICES

Transcription

1 MILSTED LANGDON: BUSINESS ADVANTAGE PEACE OF MIND MILSTED LANGDON INTERNATIONAL SERVICES w w w. m i l s t e d - l a n g d o n. c o. u k i n f m i l s t e d - l a n g d o n. c o. u k

2 COMPANY PROFILE Milsted Langdon, originally established in 1989, has offices in Taunton, Bristol and Yeovil in the United Kingdom. With 16 partners and a team of approximately 170 staff spread across our three locations, we find ourselves large enough to deal with the needs of our most demanding clients yet small enough to care about our smallest. Our client base ranges from individuals and families in business to large commercial groups of companies. We understand that the needs of all our clients are of paramount importance, irrespective of the size of their businesses. As a practice we are pleased to assist our clients through economic upturns and highs, as well as adverse trading situations. Maintaining a close working relationship during these economic fluctuations has rewarded us with long term loyalty from these clients and a bond seems to exist that is rarely experienced in a professional relationship. As you would expect from a well established firm such as ours, the provision of an accurate and value for money compliance service has historically formed the backbone of what we do. However, we have also sought to expand our service offerings to include strategic planning, high quality tax advice, profit improvement planning, fund raising and management reporting. INTERNATIONAL TAX PLANNING One of the key areas in which we have developed a specialism is international tax planning. We hold a unique position in the market in that we are able to offer the kind of high level bespoke tax planning that is normally associated with big four or top 20 accountancy practices. Our international tax team has many years of experience in cross border tax planning and it is because of the strength of our personnel that we are able to offer something that is genuinely different to our peers. In addition, as a member of MGI, an international association of independent accounting and consulting firms, we are able to further enhance our in-house service by collaborating with our colleagues in MGI firms around the world, to provide a bespoke advisory service. KEY AREAS OF EXPERTISE Transfer pricing reports and advice Offshore corporate structuring General international tax planning UK inward investment advice Advising internationally mobile individuals Advising on and completing offshore disclosure facilities Cross-border VAT issues advice We have outlined in the following pages how we are able to assist in the above areas.

3 OUR SERVICE OFFERING TRANSFER PRICING Transfer pricing can be a significant issue for multinational groups that conduct business across international boundaries. Most countries now have detailed rules in place to govern transactions between connected parties to prevent, for example, profits being moved from a high tax country to a low tax country. In the UK and other mature tax jurisdictions, legislation requires cross-border trading and financial transactions between affiliated businesses to be conducted according to the arm s length standard, in the same way as if the transactions were between completely independent parties. Despite the impact that a poorly understood or badly thought out transfer pricing policy can have on carefully arranged international corporate structures, in many cases transfer pricing is an afterthought. Our international tax team at Milsted Langdon specialise in preparing transfer pricing reports and giving transfer pricing advice. This is an area in which we have experienced considerable demand and is an offering which puts us head and shoulders above our competitors both regionally and nationally. Our key services include: Preparing and reviewing transfer pricing memorandums Assessing corporate obligations under different transfer pricing regimes Advising on transfer pricing compliance for multiple jurisdictions Managing transfer pricing enquiries Advance pricing agreements

4 OFFSHORE STRUCTURING Correctly structured offshore arrangements, whether for a company, individuals or a trust, can result in a reduced tax exposure while delivering the required level of control. For a business moving into or trading into a new territory, advice on offshore structuring at an early stage in the planning process is essential. Tax jurisdictions around the world vary greatly so a uniform solution to offshore structuring rarely exists. Through our membership of MGI, the Milsted Langdon team offers the expertise and understanding of cross-border taxation essential in putting into place bespoke offshore structuring solutions. Among the key factors we consider in any offshore structure is the impact of double taxation agreements. While the UK has a wide double taxation treaty network, in certain circumstances these arrangements may not necessarily deliver the most favourable approach and we can suggest alternatives. GENERAL INTERNATIONAL TAX PLANNING Tax affairs that cross national boundaries are likely to be complex and require specialist advice to maximise tax efficiency and ensure compliance with different tax authorities. At Milsted Langdon, our expert team is ideally placed to provide bespoke international tax planning services for companies, individuals and trusts. Our team has had extensive experience in international taxation and through our association with the MGI network of professional advisors we are able to offer relevant and efficient solutions in jurisdictions around the world. Areas we regularly advise on include: Maximising double tax relief Corporate acquisitions and disposals Group reorganisations Tax-efficient profit extraction Minimising exposure to double taxation and withholding taxes Assisting with HM Revenue & Customs enquiries Practical advice in respect of international anti-avoidance legislation

5 UK INWARD INVESTMENT Milsted Langdon has a great deal of experience in advising on inward investment and expansion into the UK and we can provide a one-stop shop for incoming investors, be they individuals or companies. Our specialist team can help every step of the way, from pre-planning and structuring before arrival to business set-up and support in the UK, as well as planning for any subsequent disengagement. Our expertise enables us to provide proactive advice to the parent company in respect of profit extraction. We are also experienced in the operation of the International Financial Reporting Standards (IFRS) and in meeting the accounting and auditing requirements of overseas parent companies. For businesses new to the UK, we can advise on all aspects of establishing a UK operation, including: Structuring investment vehicles UK company formations Dealing with HM Revenue & Customs VAT registration Stamp duty Transfer pricing Reporting requirements for foreign owners Advice on grants and benefits Furthermore, the first priority for inward investment firms is to focus on establishing and building their businesses. Therefore, we also provide a comprehensive outsourced service to deal with administrative and back office responsibilities, including: Accounting for international tax Worldwide tax consolidations Management and annual accounts VAT returns and compliance Full inter-company reporting Secure data transfer Audits Company tax returns and compliance Company secretarial services Payroll set-up and management

6 INTERNATIONALLY MOBILE INDIVIDUALS An increasingly global workforce is a key feature of today s business world, particularly in companies with multinational operations. Individuals may also choose to live in the short or longer term in more than one country for non-business reasons. While this flexibility may bring advantages for businesses making the most of employee talents or to suit an individual personally, an internationally mobile lifestyle raises significant tax issues. That s where Milsted Langdon s international tax team can help. Different tax laws apply to foreign nationals living and working in the UK, just as they do to UK citizens living and working abroad. Whether an employee or individual is moving to the UK from overseas or from the UK to a foreign jurisdiction, planning and structuring the transfer correctly is essential for maximum tax efficiency and compliance. Double taxation treaties are a significant issue for people with an income from a source in one country who are classed as resident in another, as they could be liable for taxation in both countries. As the UK has in place double taxation treaties with more than 100 countries, many people may be eligible for tax relief on certain types of UK income such as pensions, dividends from UK companies, interest and royalties we can advise on eligibility and help to maximise the benefits available under double taxation agreements. Our team can also advise ahead of international moves, drawing on the expertise of fellow MGI members overseas, on issues including: Tax-efficient remuneration Tax treatment of share options Tax treatment of pensions Tax return preparation and compliance Residence and domicile Short-term visits

7 OFFSHORE DISCLOSURE FACILITIES Milsted Langdon s international tax team has had extensive experience on advising clients on various HM Revenue & Customs disclosure facilities. The current offering, the Liechtenstein Disclosure Facility ( LDF ), is a five-year agreement designed to help UK taxpayers with undeclared assets or income sources in Liechtenstein to put their past and future tax affairs on the right footing. We are also able to advise UK taxpayers holding non-liechtenstein offshore accounts on their options for bringing these within the LDF procedure and the special terms on offer, for example by opening a new bank account in Liechtenstein. Taxpayers making disclosures under the LDF, which runs until 31 March 2015, are able to benefit from special terms, which include: A 10% fixed penalty on underpaid liabilities. This compares with a 200% penalty on the most serious cases of offshore tax evasion Potentially no penalty where an innocent error has been made An assessment period going back no further than 1 April 1999 The option to choose whether to use a 40% composite tax rate, thus avoiding the application of more costly taxes that could otherwise be used No criminal investigation for a tax-related offence provided there is a full and accurate disclosure and the source of the funds is not from criminal activity CROSS-BORDER VAT ISSUES Cross-border VAT rules are complex and seeking specialist advice, to ensure both compliance and tax efficiency, is a wise move. Milsted Langdon s international tax team have extensive experience in assisting firms already involved in cross-border trade or those preparing to do business abroad. Our international tax team is also able to advise and work with businesses to ensure that their VAT systems are compliant and that they are meeting all their obligations in the most VAT-efficient manner.

8 CLIENT CASE STUDIES A GLOBAL ADVISOR TO THE GAMBLING INDUSTRY We were approached by a provider of regulatory advice to the worldwide gambling industry to prepare a transfer pricing report for the group. The group had operations in both Europe and the US and had an unusual method for achieving sales and delivering data to their client base. They were also a rapidly expanding business who had little competition in a potentially highly lucrative market. They realised that in order to comply with the various tax jurisdictions in which they were operating, they needed to consider their worldwide transfer pricing position. We are able to work with the company s management to understand the group and deliver a comprehensive transfer pricing report covering all intercompany services and sales. In particular, we were able to utilise our extensive knowledge of transfer pricing requirements in different tax jurisdictions to ensure that the method adopted would be acceptable to all tax authorities. We were also able to suggest a transfer pricing policy outside of the traditional methods which more accurately reflected the transactional nature of the group. A UK START-UP WITH INTERNATIONAL AMBITIONS A group of individuals engaged us to give them tax and accounting advice on their new internet listing business. Following an initial meeting, it became clear that the business plan projected multi-million pound profits within the first five years and that international trade would be a major consideration for them. Once we made them aware of the international tax planning opportunities available, they soon asked us to devise a complete worldwide group structure to accommodate everything from their operations in North America to their call centres in India and Bangladesh. This allowed us to devise a tax efficient group structure which mitigated withholding tax deductions and allowed the majority of the group s profits to ultimately be assessable in a low tax jurisdiction offshore. A MISINFORMED NON-DOM The major UK rule changes for non-domiciles in 2008 led to an increased number of these individuals seeking professional advice on their UK tax exposure. One of the individuals who approached Milsted Langdon was a Dutch gentleman who had accumulated a sizeable investment portfolio in Switzerland before coming to the UK in the early part of the last decade. At the time he had been given advice on how to avoid his offshore income being remitted to the UK and thus avoiding a charge to UK income tax. His advisor had led him to believe that all monies remitted were capital. However, once we carried out an in-depth review of his investments it unfortunately transpired that income and capital had long since become mixed.

9 Our client was left facing a historic tax bill which, with interest and penalties, reached almost 0.5m. Following a review of the client s position, we recommended that he take advantage of the Lichtenstein Disclosure facility ( LDF ). This would lead to penalties being capped at 10% and avoid any risk of prosecution. We were able to ensure our client qualified for the LDF even though historically he had never held any assets or interest in Lichtenstein by ensuring a number of simple steps were taken. This planning saved our client almost 200k in penalties. A CORPORATE HEALTH CHECK We were approached by a corporate group who provided benchmarking analysis to the banking industry to carry out a tax review of the group. The aim of the review was to identify current tax risks and to recommend steps that could be taken in the future to make the group more tax efficient. The corporate group had enjoyed rapid growth in Europe and had already begun expanding into the US and Asia. They recognised that as the business matured they could no longer make do with the tax advice offered by their existing advisors and that they needed to engage a firm able to offer more bespoke international tax advice. Following a review of their group, we were able to identify a number of tax exposures and advise on what action they needed to take in order to rectify these. These steps varied from simple changes in management methods to introducing a group transfer pricing policy. We are also able to suggest a number of planning steps that the group could take to reduce its overall effective tax rate and make the business more attractive to a potential purchaser. This was seen as a key exit strategy for the current board.

10 OUR TEAM ELAINE DURRANT - Partner Specialisms: International and business tax planning and advice. edurrant@milsted-langdon.co.uk Elaine Durrant is an experienced tax advisor, particularly in the areas of international tax, business tax, corporation tax, VAT and tax litigation. After training in the audit department of Price Waterhouse in Birmingham she began her career in tax in Elaine worked on a broad range of large and small clients for Price Waterhouse, Robson Rhodes and KPMG in Birmingham and finally KPMG s international tax team in London. Elaine then spent eight years working for Capital One Bank, rising to the position of senior director heading up their European tax department. Elaine joined Milsted Langdon as a Tax Partner in May 2007 and is able to bring the wealth of experience she has gained in a rapidly growing commercial organisation to service our clients. Elaine is a Chartered Accountant and a Chartered Tax Advisor. STEPHEN GRIFFITHS - Partner Specialisms: personal tax compliance, business tax compliance, property transactions, corporate reconstructions sgriffiths@milsted-langdon.co.uk Stephen Griffiths is a tax specialist, who joined Milsted Langdon in December 2007 after spending seven years at a top tier Bristol firm. Prior to becoming a partner at Milsted Langdon, he managed the personal tax department of the firm s Yeovil office, working with general practice partners in providing ad hoc business advice to their clients. He has a degree in accountancy and finance and is a member of both the Chartered Institute of Taxation and the Association of Taxation Technicians. Stephen has extensive experience in dealing with personal and business tax compliance. He also has comprehensive expertise in indirect taxes including VAT and stamp taxes and plays a key role within the firm s specialist VAT consultancy service. GARETH LEWIS - Manager Specialisms: International and business tax planning, corporate taxation and tax planning for entrepreneurs glewis@milsted-langdon.co.uk Gareth Lewis is our international tax manager and joined the firm in early He trained with a regional firm and qualified as a Chartered Tax Advisor before moving to Deloitte s entrepreneurial business team. Whilst at Deloitte Gareth worked with owner managed businesses as well as multi-national organisations. During this time he gained practical experience of advising on the cross border tax consequences of inter-company transactions as well as international reorganisations. He also gained experience in advising on the UK s anti-avoidance legislation targeted at multi-national groups. This included the worldwide debt cap provision, anti-arbitrage rules, and thin-capitalisation legislation. COLLEEN GIBBS Specialisms: International tax advice and personal tax compliance Colleen Gibbs is the newest member of our international tax team. She is a newly qualified Chartered Tax Advisor who joined the Bristol office in September To date, Colleen has focused her attention on personal taxation, managing a mixed portfolio of clients and getting involved in most aspects of personal and partnership tax compliance work. Colleen also has practical experience of HMRC enquiries, trust taxation and accounts. She is currently expanding her involvement in international tax planning and in particular, Colleen excels in analysing the impact of double taxation treaties on cross-border trade. Since joining Milsted Langdon, Gareth has been predominantly providing international tax advice to both individuals and corporations and has specialised in transfer pricing.

11 SPECIALISMS Audit and Accountancy Business Intelligence Business Tax Corporate Finance Financial Services Forensic Accounting Insolvency International IT Consultancy Legacy Services Mediation Payroll Bureau Personal Tax Private Client Services Property Public Sector Wind-Downs Taxation VAT Consultancy TAUNTON OFFICE Winchester House, Deane Gate Avenue, Taunton, TA1 2UH Tel: Fax: BRISTOL OFFICE One Redcliff Street, Bristol, BS1 6NP Tel: Fax: YEOVIL OFFICE Motivo House, Yeovil, BA20 2FG Tel: Fax: Disclaimer - for information of users: The information in this flyer is intended for general advice only and no action should be taken in respect of individual circumstances without receiving specific advice. MGI is a worldwide alliance of independent auditing, accounting and consulting firms. Neither MGI nor any member firm accepts responsibility for the activities work, opinions or services of any other members. w w w. m i l s t e d - l a n g d o n. c o. u k i n f m i l s t e d - l a n g d o n. c o. u k