A Tax Haven is a tax jurisdiction other than your own, which assists you in legally providing tax deferral of certain taxes (primarily income and capital gains taxes). Tax Havens have been abused by taxpayers worldwide over the years; however, when used properly, they can be a legal and effective tax deferral tool. Initially, the taxpayers must report the existence of the Tax Haven holdings and report the income and gain as required in their home country. May people establish trusts or holding corporations in Tax Havens to help accomplish the goal of deferring taxes. In some cases, like the Facebook founder, individuals actually move to the Tax Haven.
Our experience attorneys help clients to legally take advantage of these structures, where appropriate. We assist clients in properly structuring the vehicles that are used, the funding of those vehicles, and then coordinating the reporting of the vehicles and assets. We currently assist clients in 14 different jurisdictions around the world. All of our clients comply with the tax rules in both the Tax Haven, as well as their home country. For US Citizens, we disclose and prepare FBARs (TD 90-22.11), 3520s and 3520As, and 8938s with the IRS. In addition, we coordinate the reporting of the client’s income tax returns in the foreign jurisdiction with the returns prepared in their home country.
Finally, should it become necessary, we represent clients before the IRS, in US Tax Court, and in litigation against third parties or creditors to defend the planning, reporting, and the underlying asset.