International: Private Wealth Newsletter | October 2019

October 2019 Edition

In brief

The October 2019 edition of the Private Wealth Newsletter features summaries of relevant and important private wealth cases, alongside a selection of legislative developments from across the world. Some of the topics discussed in this edition include:

  • The liberalization of currency control regulations in Russia
  • IRS notifications to cryptocurrency owners
  • A reflection on the advent of economic substance legislation

Click here to request the latest edition of this newsletter.

Feature

  • Wegbreit: A cautionary tale for trustees, lawyers and wealth owners

Case summaries

France

  • Management share schemes: Details on the requalification of capital gains as wages

Hong Kong

  • Wong, Choy and the capacity checklist

United States

  • In Flume, the taxpayer's inconsistent and disingenuous testimony leads to willful FBAR penalty
  • IRS concedes position on creditability of French social charges
  • North Carolina unable to tax a trust's income based solely on the residency of in-state beneficiaries

Legislative developments

Italy

  • Amendments to special tax regimes for incoming residents

Mexico

  • Anti-money laundering regularization program

Netherlands

  • Netherlands government publishes legislative proposal implementing EU rules on mandatory disclosure of 'potentially aggressive' cross-border tax arrangements (DAC6 Directive)
  • Relaxation of Dutch visa and wage tax rules for start-ups

Russia

  • Third round of the Russian voluntary disclosure program
  • Liberalization of currency control regulations

Spain

  • Ever closer to entry into force of Protocol amending the Treaty between Spain and the United States to avoid international double taxation
  • Spanish General Directorate of Taxes extends the application of the Autonomous Communities legislation re: Inheritance and Gift Taxes to individuals residing in non-EU/EEA countries

Taiwan

  • Update on new Tax Code in Taiwan to encourage funds repatriation

Turkey

  • Turkey's new asset peace initiative

United States

  • IRS begins notifying owners of cryptocurrency of potential failures to report income and pay taxes
  • IRS releases proposed regulations for foreign partner effectively connected income and withholding
  • IRS and State Department set to issue passport revocation notices (Letter 6152)

Venezuela

  • Venezuelan National Constituent Assembly approves a new tax of 0.25% on high net worth

Contacts: David Berek; Elliott H. Murray; James Gifford; Chelsea Hunter; Agnès Charpenet; Julie Rueda; Lisa Ma; Jennifer M. O'Brien; Michelle R Phillips; Michael Jaffe; Ulises Castilla Flores; Jorge S. Narváez-Hasfura; Mounia Benabdallah; Megan Ruigrok; Ilya Hoekerd; Don-Tobias Jol; Sergei Zhestkov; Artem Toropov; Isabel De Otaola; Ana Royuela; Bruno Dominguez; Michael Wong; Peggy Chiu; Christopher Murrer; Steven R. Schneider; John Richard Cacharani; Belkenia Candelario; Daniel W. Hudson; José P. Barnola, Jr.; Ronald E. Evans; Oscar Morean; Marnin J. Michaels

This article can also be accessed here.


Copyright © 2023 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.