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Showing posts from October, 2019

States - Business Activity Tax Nexus Guidance

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Here's what we previously wrote on Wayfair and sales and use taxes -  http://www.mooresrowland.tax/2018/12/supreme-court-abolishes-physical.html http://www.mooresrowland.tax/2019/10/navigating-post-wayfair-world.html

Some states are going further and now corporate income tax nexus can be triggered without physical presence
Wayfair has, for now, answered the question (at least, in part) of whether economic activity creates substantial nexus under the Commerce Clause for purposes of sales and use taxes.  However, questions remain regarding whether and to what extent business activity tax nexus standards could be impacted. While states had boldly asserted economic nexus in the business activity tax context pre-Wayfair, the response since has been somewhat muted, until recently.  Three states, Pennsylvania, Texas, and Wisconsin, have recently sought to fill in the blanks with regard to business activity tax nexus, with varied and inconsistent results that may raise more questions and concer…

Perpetual Nomad? Is it possible to pay taxes nowhere?

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I previously wrote about flag theory here - http://www.mooresrowland.tax/2019/05/flag-theory-aka-perpetual-traveler.html

Now the question often asked is this.  If I keep moving and don't spend enough time to trigger tax residency in any one country.  Am I legally free from taxes full stop?

If you're American?  The answer is here -   http://www.htj.tax/streamlined/
http://www.htj.tax/us-pre-immigration-planning/ http://www.mooresrowland.tax/2019/09/the-best-jurisdiction-for-us-citizens.html

As for everyone else?  My answer will have 2 aspects 1. National tax policy and 2. CRS





In terms of #1, I'll use Australia as a case study.  Bear with me as this will be a long answer



Australian Resident

An individual is an Australian resident for tax purposes if they pass one of four distinctive tests:

1 – Reside in Australia
2 – Domicile in Australia unless a permanent place of abode outside Australia
3 – 183 days in Australia unless a usual place of abode outside Australia
4 – Member of a…

Family Offices in Singapore

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Family offices are private wealth management advisory firms that serve ultra-high-net-worth (UHNW) investors. They are different from traditional wealth management shops in that they offer a total outsourced solution to managing the financial and investment side of an affluent individual or family. For example, many family offices offer budgeting, insurance, charitable giving, family-owned businesses, wealth transfer, and tax services.
Understanding Family Offices
Some high new-worth individuals may want to consider opening a family office. A family office provides a wider range of services tailored to meet the needs of HNWIs. From investment management to charitable giving advice, family offices offer a total financial solution to high net worth individuals. In addition, the family office can also handle non-financial issues such as private schooling, travel arrangements, and miscellaneous other household arrangements. Family offices are typically either defined as single family offices…

Taxation of Digital Products

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For background, please read -  US - http://www.mooresrowland.tax/2019/10/navigating-post-wayfair-world.html EU - http://www.mooresrowland.tax/2019/10/distance-selling-in-eu.html Digital Nomads in Asia - http://www.mooresrowland.tax/2018/04/tax-responsibilities-of-digital-nomads.html US Digital Nomads - http://www.mooresrowland.tax/2018/03/non-us-digital-nomads-working-for.html



Taxing remote businessesFor a government to levy corporate tax on a foreign firm, tax rules require a “nexus” or link between the taxpayer and the taxing jurisdiction, typically in the form of physical presence such as offices or workers. In our digital world, firms can interact with users and create value in a country without needing to physically set up there. More than 130 countries are discussing new rules, under the OECD’s Inclusive Framework, to change the nexus requirement so it is not dependent on physical presence. 
The rules will determine how to allocate some taxable profits to (and among) market jurisdict…