In many ways, the pandemic has stress-tested a number of areas that we have taken for granted: that a travel visa is enough to access countries where our parents, children or businesses are located; that the location of the family office or trust is neutral, so long as the jurisdiction allows foreign ownership and is tax efficient; and that there is always time to consider and deal with succession planning. With the dawn after the pandemic, however, it seems appropriate that all (be they families, business owners, trustees or regulatory and tax authorities) ponder what has been branded the ‘new normal’. What has changed and what has not? It seems clear that things will not be entirely as they were before 2020.
This issue of the STEP Journal addresses these reflections and transitional considerations. The unexpected expenses over the past two years have prompted many countries to take a closer look at their economic position and their income, in particular from taxes. Compliance issues have become omnipresent and the disclosure and reporting web is wider and tighter. Ashley Fife TEP and Georgia Fotiou TEP write about the proposed changes to the Common Reporting Standard that are likely to affect trusts; Hugo Rönneskog TEP explains the ‘unshell proposal’, a proposed directive to prevent the misuse of shell companies for tax purposes; and Sebastian McVicker-Orringe and Iain Mottram warn of the new programmes that His Majesty’s Revenue and Customs (HMRC) is developing to identify tax non-compliance. On the defensive aspect, Dawn Register TEP and Helen Adams TEP highlight the common mistakes in tax returns for trusts, estates, beneficiaries and settlors to HMRC.
The pervasiveness of digital is such that it is no longer prudent or even sensible to ignore the world of blockchain or crypto investments. In his useful guide, Dave Madan TEP deals with estate planning and administration involving digital assets. I would recommend reading this alongside Josie Cuff and Emma Menzies TEP’s roadmap for trust companies to adapt to the evolving reporting environment.
Happy reading and I hope to see you at the STEP Asia Conference in Singapore in November!