The phrase „sometimes size does matter” is also true in international tax planning. The amendments to legislation and banking changes we have experienced over the last few years have forced numerous clients to give up the corporate structures they had established earlier. This applies in particular to those clients for whom the financing of such a structure was no longer viable. Those who have remained will be faced in 2017 with the automatic exchange of banking information and its consequences. The third edition of the 2016 LAVECO Newsletter provides them with interesting support on how to deal with the process.
25 years ago it was similarly autumn in Budapest, with lovely warm days. On September 16th 1991, the day we signed the foundation documents of LAVECO Kft., there were two things which we had absolutely no idea about.
As I am writing these words, a relatively short article has just appeared on the international internet portals: the IT specialist who is believed to have downloaded the offshore details from the server of the company Mossack and Fonseca and handed them to journalists has been arrested in Switzerland.
Anyone who has read the lines, and more significantly between the lines, of the last 3 Newsletters will already have realised what I would like to summarise in this article: “offshore” is definitely not dead, and certain structures formed earlier should by no means be thrown away, or rather there is no point or benefit in establishing new ones. However, there are situations where it is worth making a fresh start, and heading into the new year with a clean slate.
This edition will be slightly different from normal. In a rather long leading article I summarise the messages of the 3 previous Newsletters in a different format and with additional content. If you read it all, then it becomes clear: this article does not merely combine the content of 3 editions, but by analysing the most important developments of the last 15 years brings us up to the current situation. The start of the automatic exchange of information in 2017 is now relatively close. At the same time, there is a lot of uncertainty, even among the banks „operating” the system. Even today, the experts can not say exactly what is going to happen and how. There are many questions to which we receive the answer: this may well change in the future. So it is very difficult to see the future clearly, and to offer a certain and definitive opinion.
While Europe is being swamped by unprecedented waves of refugees, I sense the signs of uncertainty on people in the business world. As if the world still hasn’t recovered from the recession which began back in 2008. Businessmen are still looking for the orientation points which will help guide them in the future. The leading article of the third issue of this year’s Newsletter also attempts to contribute to the guidance process. In regard to the exchange of information, we cast light on certain instances which you won’t read about on the official sites.