CS Global Partners: EY Says Citizenship is Independent of Tax Residency
The CBI Index has published a report compiled by top global tax advisors Ernst & Young (EY) that provides important insight on the distinction between citizenship and tax residency and debunks the myth that citizenship by investment (CBI) programmes, such as those operated by the Commonwealth of Dominica and St Kitts and Nevis, pose a risk to tax reporting.
Following an in-depth analysis, EY concludes that: (1) citizenship and tax residency are “distinct” concepts; (2) CBI programmes do not themselves facilitate tax evasion and incorrect reporting under the CRS; and (3) citizenship is not relevant to obtaining tax residency in Dominica, St Kitts and Nevis, or St Lucia,
These findings are significant, as they counter recent criticisms of CBI programmes made by bodies such as the OECD and the European Commission, which are largely based on the mistaken view that CBI programmes are, for all intents and purposes, vehicles for obtaining a new tax residency status.
EY surveys historical precedent and model international conventions to conclude that tax residency, as a concept, is “separate to that of citizenship.” Tax residency, it says, is “often built around the degree of personal socioeconomic links with a country,” and that a majority of tests, including those in the OECD Model Tax Convention, look to physical presence, a permanent home, a habitual abode, or a centre of vital interests to determine tax residency. “[R]eference to citizenship,” instead, “is rarely used as a tie-breaker in relation to residence.”
The report highlights CBI as an industry where the concept of tax benefits, tax residency, and citizenship are commonly – and erroneously – associated. Countries may offer both tax incentives and CBI options, but the two are separate. Indeed, the more common reasons for applying for citizenship are listed as political security, increased travel prospects, lifestyle advantages, and escape from prejudice.
The report finds support in the words of the OECD, which, in February 2018 said that CBI schemes “generally do not provide tax residence,” and of the European Commission, which, in January 2019, said “the use of these schemes does not equate to tax evasion.”
With respect to reporting tax information under the CRS, EY concludes that “citizenship should not give rise to tax avoidance and evasion opportunities, as the reporting rules [under the CRS] are explicit in not using citizenship as a test.” Per the CRS Implementation Handbook, “US specificities (such as the use of citizenship as an indicia of tax residence) […]” were removed from the CRS.
Caribbean CBI jurisdictions Dominica and St Kitts and Nevis are cited in EY’s report to illustrate how tax residency cannot be accessed by the mere fact of citizenship. In Dominica, the report shows that time spent on the island – not citizenship – is the rationale on which tax residency is based. In St Kitts and Nevis, a temporary resident is distinguished from a resident (who may be liable to certain tax) on the basis of periods spent in the Federation and purpose of stay. Of the Caribbean generally, EY says: “Whilst it may very well be common for a person to be a citizen (whether by birth or naturalisation) of the same jurisdiction in which he is resident, it is clear that citizenship is not a relevant determinant of [tax] residence […].”
In releasing its report, EY has provided much-needed commentary on the distinction between citizenship and tax residency, and, by consequence, on the independence of citizenship by investment from tax-related activities, such as reporting under the CRS.
Access the EY report here.
Om Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
SCG Chemicals Company chooses gPROMS modelling for digital design and operations22.3.2019 15:55:00 CET | Pressemelding
Process Systems Enterprise (PSE), the Advanced Process Modelling company, today announced that it has signed a long-term agreement with SCG, one of the largest integrated petrochemical companies in South East Asia, to standardise on PSE’s gPROMS® modelling technology for digital design and operations. SCG applies advanced process models within digital design initiatives to explore the process decision space rapidly and effectively, in order to reduce uncertainty and make better, faster and safer design and operating decisions. This help them to accelerate innovation and optimise the design and operation of their process plants. Dr Suracha Udomsak, SCG’s Emerging Business Director and R&D Director, says, “at SCG Chemicals, advanced process modelling (APM) is a key element in our Digital Manufacturing platform. APM accelerates innovation by making the development workflow ‘faster, cheaper & safer’, which are key considerations for us. It is a core technology building block that enables u
Logicor Announces Results for Year Ended 31 December 201822.3.2019 14:29:00 CET | Pressemelding
Logicor announces strong financial performance for the year ended 31 December Net Operating Income (NOI): €639 million, which represents year on year growth of 2.5%, reflecting our strategic focus on increasing occupancy and capturing market rental growth. Over 60% of NOI is generated in the key markets of the UK (26%), Northern Europe1 (21%) and France (15%). Gross Asset Value: €12.5 billion, a 3.3% increase in valuation, which reflects the strong performance of our portfolio, in particular in Northern Europe. EPRA Occupancy: 94.4%, with physical occupancy up 70 bps over the year, underpinned by strong growth in each of our three largest regions of the UK (+120 bps), Northern Europe (+110 bps) and France (+220 bps). LTV: 51%, down from 52% at year end 2017 following increases in property values. At year end, our debt to EBITDA ratio was 11.3x. Capital Structure In 2018 Logicor (rated BBB (Stable) by S&P) established a Euro Medium Term Note (‘EMTN’) programme and raised €1.8 billion of
Delticom AG/Mytyres.co.uk: Buying Great Value Tyres Online Doesn’t Mean Missing out on Professional Fitting22.3.2019 14:15:00 CET | Pressemelding
Spring is just around the corner, and it’s time for drivers to start thinking about changing to summer tyres. However, a tyre check may show that your current summer tyres are getting old, worn out, or have visible damage, such as cracks or bumps. If this is the case, then it's time for a new set of tyres. The legal minimum tread depth is 1.6 mm, however experts recommend significantly more – summer tyres should be replaced even if the tread depth is 3 mm. Regardless of mileage, you should change your tyres at least every eight to ten years. This is because the rubber starts to harden, the tyres lose grip on the road, and driving performance is affected. Of course, a set of four new tyres is a significant investment – authorised workshops can often charge between 250 and 350 pounds. If you want to save money, consider the alternatives: the result is an increasing number of customers turning to online shops such as Mytyres.co.uk to buy new tyres. The market share of tyres sold online ha
Trueman Man Clinic Achieves 10000 Surgery Milestone with Its SWITCH Operation22.3.2019 13:00:00 CET | Pressemelding
Trueman Man Clinic Network announced that the 10,000th surgery utilizing its SWITCH Premature Ejaculation Surgery (Nerve Conservation), has been successfully completed. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190322005013/en/ Trueman Man Clinic Network has been successfully completed the 10,000th surgery utilizing its SWITCH Premature Ejaculation Surgery (Nerve Conservation). The SWITCH Premature Ejaculation Surgery (SWITCH operation) developed in 2010 by Dr. Yang, the chief director of the Trueman Man Clinic Network, can reduce the side effects of penile neurectomy and maintain the stable reduction of the glans sensation. The Trueman Man Clinic Network is the leading hospitals for male enhancement surgeries in Korea consists of 11 clinics, with 16 doctors working. As of 2019, more than 43,000 man clinic surgeries have been performed. (Photo: Business Wire) The Trueman Man Clinic Network is the leading hospitals for m
Janssen Seeks Expanded Use of DARZALEX®▼ (daratumumab) Combination Therapy for Patients with Newly Diagnosed Multiple Myeloma Who Are Transplant Ineligible22.3.2019 11:22:00 CET | Pressemelding
The Janssen Pharmaceutical Companies of Johnson & Johnson today announced the submission of a Type II variation application to the European Medicines Agency (EMA) for DARZALEX®▼ (daratumumab) in combination with lenalidomide and dexamethasone (Rd) for the treatment of patients newly diagnosed with multiple myeloma who are ineligible for autologous stem cell transplant (ASCT). “Today’s submission brings us one step closer to our goal of improving treatment outcomes for people newly diagnosed with multiple myeloma,” said José Antonio Burón Vidal, VP Medical Affairs, Europe, Middle East and Africa (EMEA), Janssen-Cilag Limited. “We are incredibly grateful to the patients and investigators who participated in the MAIA clinical trial programme and look forward to working closely with the regulatory authorities to secure approval of this new combination.” The submission is supported by data from the Phase 3 MAIA (MMY3008) study, which were presented at the 60th Annual Meeting of the American
Bartek Ingredients Expands Leadership Team21.3.2019 22:35:00 CET | Pressemelding
Bartek Ingredients Inc. recently completed a 4,000 ton/year capacity expansion for its malic and food-grade fumaric acid production facility, and today it announces the expansion of its leadership team, with the hiring of Jeff Billig as Vice President of Marketing & Business Development and Heinrich G. Schaefer as International Sales Director. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190321005785/en/ The global leader in malic and fumaric acid ingredients expands its leadership team. (Photo: Business Wire) Bartek’s investment in both its team and facilities reinforces its position as the leader in malic and fumaric acid globally and aligns with its mission to facilitate growth and increase global reach to better serve existing customers and markets while opening up new ones. Bartek’s addition of Billig and Schaefer lays the foundation for additional resource investment in the near future while rapidly increasing its sa