Product Code: WI0004FR
The report provides analysis, information and insights on regulations for curbing offshore tax evasion implemented by various governments across key markets and their impact on wealth management companies:
- Intensive analysis of the measures being taken by some of the developed nations and emerging economies to mitigate offshore tax evasion by their taxpayers and the corresponding impact on wealth management companies
- Detailed analysis of the initiatives being taken by some tax havens in order to stop inflow of untaxed wealth and the specific effect this has on wealth management companies in their territories
- Insights into what wealth management companies can do to keep growing their business despite paucity of offshore funds due to punitive measures being imposed by the originating countries on concealed offshore incomes
- Provides a snapshot of the broader trends related to the growing prominence of certain locations as tax havens and the dynamics between onshore and offshore wealth due to taxing the previously untaxed offshore wealth
Summary
Governments globally have been taking initiatives to curb offshore tax evasion for many years. However, this phenomenon has assumed increased urgency since 2008-2009 when economies across the world, developed nations in particular, were severely impacted financially. Their prime targets have been offshore tax havens such as Switzerland and Singapore. Coordinated and individual actions taken by different jurisdictions have significant ramifications for offshore wealth management companies and other institutions whose business is significantly driven by offshore deposits. The economy at the forefront of fighting offshore tax evasion is the US. It has entered into agreements with several nations to ensure that their financial institutions implement the provisions of the Foreign Account Tax Compliance Act (FATCA), passed by US Congress. Under FATCA, the financial institutions of partner nations are required to give details of accounts held by US taxpayers with them, or be subject to a withholding tax of 30%. Jurisdictions such as the UK have been signing bilateral agreements with other economies, under which limited timeframe disclosure facilities are being offered to offshore account holders to come clean on their wealth or face penalties. Wealth management companies in tax havens entering into these agreements are expected to handle significant funds through tax payments by offshore account holders. This comes under the category of tax information exchange agreements, whereby financial institutions in treaty countries are required to submit client data.
Scope
- This report provides a detailed analysis of measures being taken by some developed nations and emerging economies to mitigate tax evasion offshore by their tax payers
- It explains the key provisions of some of the important acts such as the Foreign Account Tax Compliance Act in the US
- It details the measures being taken by certain tax havens to reduce their geographies from being used to evade taxes
- It details the impact on wealth management companies that had previously derived a major share of their business from offshore wealth
- It details the market entry strategies and product, target and customer retention strategies used by various wealth management companies in the wealth management industry
- It suggests the new business models and marketing strategies to be adopted and the new geographies that have to be targeted by wealth management companies in tax havens to keep their business growing
Reasons To Buy
- Understand the significance of the measures being taken by some nations such as the US, the UK and Germany to tax the offshore concealed wealth of their taxpayers
- Comprehend the impact on wealth management companies whose business is driven mainly by offshore wealth
- Gain insights into the business models that have to be adopted, the inherent strengths that have to be highlighted and the jurisdictions that wealth management companies in offshore tax havens have to focus on to continue to expand their businesses
Table of Contents
1. Executive Summary
2. Global Snapshot and Outlook
- 2.1. Global Offshore Tax Evasion Dynamics
- 2.2. Regulations and Compliance across Key Markets
- 2.2.1. Developed economies
- 2.2.2. Tax havens
- 2.2.3. Emerging economies
- 2.3. Recent Developments and Future Outlook
3. Developed Economies
- 3.1. The US
- 3.1.1. Introduction to FATCA
- 3.1.2. Key agreements with offshore economies
- 3.1.3. Impact on wealth management business
- 3.1.4. Challenges
- 3.2. The UK
- 3.2.1. Introduction to offshore tax evasion regulations
- 3.2.2. Key agreements with offshore economies
- 3.2.3. Impact on wealth management business
- 3.2.4. Case study
- 3.2.5. Challenges
- 3.3. Germany
- 3.3.1. Introduction to offshore tax evasion regulations
- 3.3.2. Key agreements with offshore economies
- 3.3.3. Impact on wealth management business
- 3.3.4. Case study
4. Tax Havens
- 4.1. Switzerland
- 4.1.1. Initiatives to curb tax evasion
- 4.1.2. Key agreements
- 4.1.3. Impact on wealth management business
- 4.1.4. Case study
- 4.1.5. Challenges
- 4.2. Singapore
- 4.2.1. Initiatives to curb tax evasion
- 4.2.2. Key agreements with other economies
- 4.2.3. Impact on wealth management
- 4.2.4. Case study
- 4.3. Hong Kong
- 4.3.1. Initiatives to curb tax evasion
- 4.3.2. Impact on wealth management businesses
5. Developments in Emerging Economies
- 5.1. Brazil
- 5.2. Russia
- 5.3. India
- 5.4. China
6. About WealthInsight
List of Tables
- Table 1: Key Destinations for Offshore Wealth, 2011
- Table 2: Offshore Tax Evasion Regulations in Developed Economies
- Table 3: Anti-Tax Evasion Legislations in Tax Havens
- Table 4: Initiatives to Curb Offshore Tax Evasion Taken by Emerging Economies
- Table 5: US Accounts Held By Financial Institutions and Reporting Guidelines
- Table 6: Exempted Offshore Institutions and Products
- Table 7: FATCA Regulations and their Implications
- Table 8: Number of US HNWIs and their Overall Wealth, 2008-2017
- Table 9: Key Challenges of FATCA Regulations
- Table 10: Penalties for Different Inaccuracies
List of Figures
- Figure 1: FFIs Under FATCA Regulation
- Figure 2: Obligations for FFIs Under FATCA Regulations
- Figure 3: Evolution of US FATCA Regulations, 2010-2014
- Figure 4: US FATCA and its Impact on Financial Institutions
- Figure 5: Completed and In-Process Agreements with Offshore Economies, February 2013
- Figure 6: Taxation Agreements Between the US and Switzerland
- Figure 7: Taxation Agreements Between the US and Ireland
- Figure 8: Taxation Agreements Between the US and Mexico
- Figure 9: Taxation Agreements Between the US and Denmark
- Figure 10: Taxation Agreements Between the US and the UK
- Figure 11: Number of US HNWIs and their Overall Wealth, 2008-2017
- Figure 12: Case Study - HSBC
- Figure 13: Case Study - Wegelin & Co.
- Figure 14: Classification of Territories for Determining Penalties for Offshore Tax Non-Compliance
- Figure 15: Classification of Territories for Determining Penalties for Offshore Tax Non-Compliance
- Figure 16: Benefits to Individuals who Volunteer under LDF
- Figure 17: Benefits of Providing Information under IOMDFK
- Figure 18: Case Study - Tax Payments and Offshore Employee Benefit Trusts
- Figure 19: Case Study - Offshore Tax Evaders Roderick Smith and Stephen Howarth
- Figure 20: Case Study - Credit Suisse
- Figure 21: Case Study - UBS
- Figure 22: Singaporean and German Tax Agreements
- Figure 23: Case Study - Bank of Singapore
- Figure 24: Impact of Tax-Evasion Regulations on Hong Kong Wealth Management
