Embed Size (px)
Citation preview
12015 Private Wealth
Private WealthDeloitte 2015 Wealth planning in a more stable environment
22015 Private Wealth
Your contacts in Luxembourg
Pierre-Jean Estagerie Partner - Tax+352 451 452 [email protected]
Vincent Gouverneur Partner - EMEA Investment Management Leader+352 451 452 [email protected]
Benjamin CollettePartner - Strategy, Regulatory& Corporate Finance Leader+352 451 452 [email protected]
Pascal MartinoPartner - Strategy, Regulatory& Corporate Finance +352 45145 [email protected]
Adriano Picinati di TorcelloDirector - Art & Finance+352 451 452 [email protected]
Private Wealth Leader
Advisory & Consulting
Audit
Tax
Raymond KrawczykowskiPartner - Tax Leader+352 451 452 [email protected]
Raphaël GlohrPartner - Indirect Tax+352 451 452 [email protected]
Laurent FedrigoPartner - Audit+352 45145 [email protected]
32015 Private Wealth
Dear Reader,
During the present decade, the wealth management professionals have been facing new challenges in an evolvinginternational tax environment. The financial crisis has lead the jurisdictions and international organizations to take actionsstrengthening the tax transparency in a more stable environment for onshore wealth.
The wealth management professionals had also to expand the frontiers of their traditional core markets to take intoconsideration the emerging countries. These countries attest a high potential for the business of their clients who alreadyhave adopted their business models from which arise new expectations.
At the same time, a generation of successful entrepreneurs are considering their wealth transfer and are seeking adviceto prepare the transfer in a tax efficient way as well as to prepare the future management of their business.
In this context, managing wealth is now more than ever a matter of careful planning anticipating international and nationalpressure to built, side by side with your trusted tax adviser, a stable experience which could stand the test of time.
The purpose of the present Deloitte Private Wealth booklet is to provide you with resources to leverage in planning forlong term success through today’s economic, tax and regulatory environment.
We hope that the new visual layout of the Deloitte Private Wealth booklet enables you to tap into the content and themany considerations that are the most relevant for your specific situation.
Best regards,
Pascal RapallinoPrivate Wealth LeaderDeloitte Tax & Consulting
42015 Private Wealth
Contents
Introduction
Current environment
Clients
Services
Resources
52015 Private Wealth
Introduction
For our Private Wealth practice, serving private clients(business owners, entrepreneurs, wealthy families, artists,etc.) goes beyond a technical tax advisory relationship.
Our practice focuses on the situation of each client with adeep understanding of the business issues. The finalobjective is to help them to address their tax positions anddeclarative obligations.
In addition to your specific circumstances, our specialistsbring a deep understanding of the current environment andhow it may affect your company and your personal situation,from regulatory changes to globalization to the ups anddowns of our economy.
In the past few years, the wealth management industrieshave changed significantly. The financial crisis has increasedinvestor’s tolerance to risk, and the current low yieldenvironment has made it more challenging to meet investor'sexpectation of returns while limiting risk. In addition, thepressure for global tax transparency from governmentsaround the world to crack down on tax evasion and tax fraud,has caused a significant shift from offshore to onshorewealth.
In this current environment, tax considerations play a criticalrole when tailoring an appropriate approach for a privatecompany and its owners. The services outlined on thefollowing pages are important resources to leverage inplanning for long-term success through today’s economicand regulatory environment.
Those concerns with tax planning must consider some key questions, amongst other :
• To what extent the international tax environment change can affect my personal situation?
• How can I structure my estate in a tax efficient way?
• What is the timeline to restructure?
Going forward
“[…] a deep understanding of thecurrent environment and how it mayaffect your specific situation […]”
Deloitte Private Wealth
Deloitte Private Wealth focuses on the specialised needs ofthe ultra-affluent, including families with multigenerationalwealth, entrepreneurs, and closely held business owners. Inan area of complex tax laws, stringent regulations andturbulent investment environment, we highly valued as trustywealth adviser with knowledge and experience, broadresources and global scope.
62015 Private Wealth
The current environment
In this section: • Impacts of the financial crisis
• Onshorisation of assets
• Foreign Account Tax Compliance Act (“FATCA”) & Common Reporting Standard (“CRS”)
• Base Erosion and Profit Shifting (“BEPS”)
• Impacts of the papyboom (i.e. intergenerational wealth transfer) on family-owned group
• Globalization of client’s expectations
72015 Private Wealth
Current tax environment
Financial crisis
Intergenerational wealth transfer
Tax – Regulatory
Globalization
Reactions
Trusted advisor
Efficient and stable structuring
Simple and compliant structuring
Tax efficient financing mechanisms
Asset protection
Management and ownership
Leadership development
Leadership change
Onshorisation BEPSFATCA / CRS
A wide generation of entrepreneurs will transfer their business / wealth to the next generation
Regulatory, tax and KYC/AML/CTC challenges
The new markets with new investments expand the nature of the sophisticated clients seeking to achieve an efficient
structure at any level
82015 Private Wealth
Clients
In this section:
Focus on customers’ profiles –both in B2C and in B2B relationships
92015 Private Wealth
Clients A wide range of expertise
Entrepreneurs Athletes, Artists and Fashion
Models
Asset Managers
For our Private Wealth practice, serving private clients goes beyond a technical tax advisory relationship. Our practice focuses on the situation of each client, with a deep understanding of the business issues
Private BanksWealthy Families Family Offices
B2C B2B
102015 Private Wealth
Services
In this section:
• Tax planning for wealthy families
• International tax and estate planning
• Succession and intergenerational
wealth transfer planning
• Restructuring of family-owned group
• Management of Intellectual Property
• Art & finance tax planning
• Tax reclaim assistance for private clients
• Assistance in private equity transactions
• Initial Public Offering and listing services
• Family governance
• Corporate governance
• Family office set up
• Income tax compliance and planning
112015 Private Wealth
Tax planning for wealthy familiesTax services
Individuals and families withsubstantial assets can findthemselves faced with difficult andcomplicated decisions associatedwith protecting and growing theirlegacy.
Developing a detailed plan for yourown long-term financial goals, thegoals you have for your family andspecial causes can help bringperspective and discipline to long-term wealth planning.
Deloitte is well versed in addressingthe many facets of wealth planningfor you, your family and yourbusiness. We can assist you inexploring issues to consider for anoverall wealth plan and availableoptions in pursuing your goalsalongside your other advisors to helpkeep your plans current.
Our Private Wealth professionalshave experience with the manycomplex issues involved in estate gift,trust and charitable planning and wecan tailor our services to your specificcircumstances.
For example, we can advise on thecreation and structure of trusts,partnerships and other planningvehicles, design gifting programsfor heirs or chosen cause, andassess charitable planningvehicles.
Our goal is to help you and ultimatelyyour estate fiduciaries, construct andimplement a wealth transfer plan thatpreserves assets, manages tax risks,considers regulatory and tax changesand reflects your goals.
“[…]assist you in exploring issues to consider for an
overall wealth plan and available options to
pursuing your goals […]”
122015 Private Wealth
Our range of services
Deloitte works closely with clients to address internationalresidency and tax matters and assess investment opportunitiesfrom a tax-aware vantage point.
We provide information based on the nuances of investing inspecific countries and asset types.
Our specialists also help to take this knowledge into accountwith your other investment and wealth planning goals so youcan make an informed decision when considering if, how andwhere to invest your wealth overseas.
International tax and estate planningTax services
Increased mobility among High-Net-Worth Individuals and familieshas coincided with a broad expansion of a globally integratedeconomy with greater cross-border trade and investment. Thesefamilies face myriad possibilities for tax and estate planning,especially when they have international residency or investments.
132015 Private Wealth
Succession and intergenerational wealth transfer planningTax servicesEvery business owner or leader has his or her own visionfor the company’s future. It takes careful planning andconsideration to give your business every chance to realizethat goal, even after you are no longer leading the companyyourself.
Succession plans should be made long before you areprepared to leave leadership, allowing time to identifysuccessors, cultivate support for your successor and yourgoals and organise the related tax and estate planningconsiderations. Deloitte understands the complexity of thesuccession planning process.
We have helped multitudes of private companies through theprocess, with the end goals as varied as the people andindustries they represent.
“Guide you through the toughdecisions and help you to see valuefrom the perspective of prospectiveleaders and/ or buyers with anawareness of tax consequences toconsider for both the business and thestakeholders.”
142015 Private Wealth
Restructuring of family-owned groupTax services
During turbulent times, manycompanies are uncertain how bestto proceed and may be unaware ofthe available options when facing arestructuring either in or outside of abankruptcy.
It is also important to consider thetax implications of restructuring orreorganization, while planning for aframework that will allow for futuretax efficiency. By taking control ofyour restructuring or reorganizationprocess, you can closely managethe decisions you make to betterconsider potential pitfalls that canlead to unintended loss of taxattributes and unfavorable taxpositions.
Deloitte assists companies throughthe various aspects of therestructuring and reorganizationprocess to help address the taximplications for the business,owners and other stakeholders.
We have significant experience inworking with financially troubledentities or those in bankruptcy andtheir complex tax issues andhelping them reorganise in a tax-efficient manner.
In doing so, we can assist withidentifying opportunities topreserve the value of taxattributes such as net operatinglosses and tax basis.
“Consulting and assistingwith implementing tax-efficient acquisition andfinancing structures.”
152015 Private Wealth
Management of Intellectual PropertyTax services
Managing this Intellectual Property (IP) has become avital part of any management team’s work, as there areample opportunities to enhance returns when financialexploitation, legal protection, and tax strategies arecombined effectively.
One of the most difficult and significant decisions inmanaging this IP lies in where to develop and hold it, asthis can have a far reaching effect on the rate of return.
Luxembourg offers the following benefits for IPmanagement:
Tax incentives for research and developmentactivities;
Low effective taxation of the holding vehicle;
Access to double tax treaty network providingfor substantial withholding tax reductions oncross-border royalty payments;
Favorable VAT rates and optimization of inputVAT recovery;
Absence of strict domestic transfer pricing rules.
Furthermore, Luxembourg has been proactive indeveloping its IP standards and is party of all the major IPtreaties and conventions, making it an ideal place todevelop or manage IP.
2015 Private Wealth
162015 Private Wealth
Deloitte Luxembourg and the global network offer a wide array of art-related services to address clients’ needs on a worldwide basis, including:
• Gift and estate tax planning for collectors, family offices, wealth managers, and art advisors;
• Intellectual Property rights for artists and heirs;• Corporate tax for brick and mortar art businesses and online
art businesses;• Philanthropy and charitable planning for collectors, family
offices, wealth managers, and art advisors;• Import and export considerations for art stakeholders.
Art & finance tax planningTax services
Art can be viewed from several perspectives – as store ofwealth, a masterpiece to cherish, a family heirloom, abusiness, a part of trust or estate, an investment or a gift to acultural institution.
Deloitte Luxembourg has been actively involved in thedevelopment of an art and finance cluster in Luxembourg aspart of the diversification of the Grand-Duchy’s economy.
We offer a full range of services coordinated by one team,for a seamless approach that best suits our client’s needs.
Through a single point of contact in Luxembourg, you willaccess the Deloitte Global network and benefit from itssupport when dealing with complex tax issues related toowning and dealing art as well as investing in the global artmarket.
“The Global art market is transforming, creating new opportunities.”
172015 Private Wealth
Tax reclaim assistance for private clientsTax services
Luxembourg private bankers will have todifferentiate and be innovative to maintain theirattractiveness vis-à-vis clients that are now morethan ever, looking for advice to optimize theirinvestments. In this context, efficient taxmanagement of their clients’ investments is atrue value-added service that private bankersneed to consider.
Tax Reclaims improves the performance ofclients’ portfolio. There are a lot of factors puttingpressure on the wealth management and privatebanking industry, where its is getting more andmore difficult to achieve significant returns. Asuccessful implementation of tax reclaim processcould enhance client's portfolio performance by0,10% to 0,15% and consequently, increasesclient portfolio Assets under Management. Taxreclaim services can be a major differentiatorwhen it comes to service offering for U/HNWIwhich will not only increase client satisfactionand retention but also attract new clients.
“Tax reclaim services offer the opportunity for relationship managers to get in touch with clients with good news which will not only create a “wow effect” but also provide great opportunities for cross-selling”
“Tax Reclaim, an innovative differentiator for your institution”
182015 Private Wealth
Private equity transactionsTax services
“ Help you make tax-informed decisions to support your goals and work throughthe pre-and post-sale periods. ”
Whether you are considering sellingall or a part of your business, you canbegin to prepare your company nowfor your near- or long-termobjectives. Deloitte works with bothsellers and buyers, including privateequity firms.
We have the knowledge andexperience to help you analyze yourenterprise value
Many private companies plan toultimately sell all or parts of theirbusiness. Other companies haveendured distress and know that sellingcertain parts of their business may betheir best approach for growth.A private equity firm is often part of thisprocess.
In order to be prepared for thepossibilities, private companies shouldconsider a number of issues, fromunderstanding the value of theircompany (from the perspective ofprivate equity firms or other buyers) tothe tax implications and opportunitiesinvolved with a sale in whatever form.
“Help you make tax-informed decisions to support your goals and work throughthe pre-and post-sale periods.”
192015 Private Wealth
Initial Public Offering and listing servicesGlobal assistance
From time to time, holdingcompanies seek to list in a stockexchange for various reasonsother than raising capital. Being arecognised international listingmarket for a wide range ofsecurities and financial vehicles,Luxembourg provides acompetitive scope of listingopportunities and alternatives.
Companies can benefit fromaccess to a large pool ofinternational investment capital,high standards of regulation, aflexible and transparent tradingplatform and a choice betweenseveral markets. A proper andefficient Initial Public Offering(IPO) structure from a taxperspective, needs to be thoughtabout from inception todivestment and should focus onsome main items.
Investor tax impact upon IPO aswell as impact of controlled foreigncompany legislation andapplicable withholding taxes onactual dividend distributionare also key features to guaranteea successful ‘go to market’decision.
Our services include our expertisein multi-disciplinary servicestailored to each issuer’s needs,such as listing agent services,preparation and review of offeringdocuments/prospectus and otherapplication requirements, adviseon legal structure and taxoptimization measures, projectmanagement and coordination,legal review and pre-issuance withthe stock exchange.
“ We offer a one-stop-shop solution to clients who want to list on the exchange.”
202015 Private Wealth
Family governanceGlobal assistance
Families often require andpromote responsible and ethicalbehavior that is elementary formaintaining a trusting andaltruistic future for a family’sheritage and wealth. Therefore,understanding and managing afamily business and its variousactivities builds on anincreasingly in-depth financialawareness. Deloitte hasexpertise in the use of a varietyof educational resources andproject management tools thatwill allow a Family Office tohandle and solve governancerelated issues appropriately.
“Deloitte has expertise […] that will allow a Family Office to handle and solve governance related issues appropriately”
Foundation of a good family governance:
• Education and learning, specific trainings;• Family councils and committees;• Corporate governance and management
structuring;• Relationship management.
212015 Private Wealth
Corporate governanceGlobal assistance
Achieving a robust corporate governance framework is keyfor an organization. Deloitte Luxembourg's CorporateGovernance HealthCheck assists in identifyingimprovement opportunities to help achieve this goal.
At Deloitte Luxembourg, we can assess your organization'sgovernance processes, measure them against bestpractices, and ensure they meet the needs of the business.We can also make sure you comply with the changingregulations. It is important for senior executives to askthemselves when they last studied their organization'scorporate governance framework, and whether they areconfident that it's robust and underpinned by integrated,resilient processes. Executives and directors shouldquestion the effectiveness of the organization's controls.We can help businesses evaluate the effectiveness of theirorganization's governance processes, develop solutions toclose the gaps and enable change to minimize risks andmaximize benefits.
“A roadmap for achieving excellence incorporate governance”
222015 Private Wealth
Family Office set up Tax services
The size and scope of a FamilyOffice can vary significantlydepending on the particularobjectives and needs of thefamily.
The optimum structure andentity type through which theFamily Office should operatewill be dependent on a numberof factors, including the locationof the various family members,tax considerations and theresources required to operatethe Family Office.
Our service in this area include :• Assessment of family’s
needs and agreeing processto establish this (e.g. bydiscussing with familymembers);
• Design of an appropriatecommercial and tax efficientstructure through which tooperate the Family Office;
• Establishing internal controlsand defining responsibilities;
• Assistance with design ofcompetitive remunerationstructure for employees;
• Advice on creation ofcorporate, trust, foundationand charitable structures;
• Advice and implementationof information technologystrategies.“ Key to setting up a
successful FamilyOffice is tounderstand theneeds and desires ofthe family as early aspossible. ”
2015 Private Wealth
232015 Private Wealth
Income tax compliance and planningTax services
2015 Private Wealth
The environment of income taxes,with ever-changing rules andregulations, is often the most complexarea of business and personalfinancial planning.
Income tax issues affect virtuallyevery aspect of your financialsituation. It is important that youconduct informed tax planning on ayear-round basis and in somecircumstances, on a multi-year basis.
At Deloitte we specialize in helpingyou understand legislative andregulatory conditions and theirpotential tax impact on your businessand individual financial goals.
“We can help you explore tax-savings opportunities and prepare for changes in the tax and economic climate.”
Experienced in addressing thecomplex issues of businessowners, their families and FamilyOffices, we can help youevaluate the potential taxconsequences of variousbusiness and personal wealthdecisions, keeping your tax,business and personalobjectives in mind.
We also can assist with taxexaminations, drawing on thespecialists of our tax controversyservices group.
242015 Private Wealth
Resources
2015 Private Wealth
252015 Private Wealth
Deloitte Private PracticeWe are with you
Deloitte Private is a private business-focussedpractice. We believe differentiating the needsof private businesses from the needs of largebusinesses assists our multi-disciplinaryprofessionals to recognise the opportunities andchallenges unique to private businesses.
We anticipate the needs of private businessesand focus on delivering innovative and effectivesolutions, while maintaining high qualityservice levels. Our local knowledge, coupledwith access to our global networks, uniquelypositions us to best serve the Luxembourgprivate market.
High net worth individuals and families
Deloitte Private is focused on delivering a fully integrated service offering to high networth individuals and families. Our depth of experience, access to thought leadershipand to the wider resources of global Deloitte, uniquely positions Deloitte Private as theleading provider of professional services to high net worth individuals and families.
Succession planning
Succession planning is a complex process involving many business disciplines. Itbecomes more complex as many different business, financial and personal issuescome into play. A good succession plan for private companies looks at a range ofissues.
Tax
Advice from tax professionals, who have the industry experience necessary for recognizing and implementing real savings, can help companies to minimize their income and capital tax liabilities. Our professionals can also assist with private companies expanding or restructuring their offshore and international businesses and investments. Our specialists in income and capital gains tax can recognize a wide range of potential tax planning opportunities, as they have access to some of the best tax practitioners in Luxembourg and around the world.
Accounting
Our accounting and tax compliance service is offering strategy meetings and regularcontact with you to ensure an efficient and coordinated approach to issues, reportingobligations and achievement of business objectives.
Our network
262015 Private Wealth
Resources
The Private Wealth Booklet is intended as a start to conversation that will continue and progress as your personal situation situations changes and grows. You can find current resources to reflect new developments on our website.
Deloitte Luxembourg@DeloitteLU - Sharing the latest news, whitepapers, podcasts, events and more from Deloitte Luxembourg.
Mobile applicationDeloitte Luxembourg at your fingertips
AnyWealth
Stay connected
Learn morehttp://www2.deloitte.com/lu
Contact usDeloitte Luxembourg560 Rue de Neudorf2220 LuxembourgPhone .: +352 45 14 51
272015 Private Wealth
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's approximately 200,000 professionals are committed to becoming the standard of excellence.
