Case: Saved from loss

Client request

In a nutshell, a client has an investment portfolio managed by a bank in a private account in Switzerland. Each year, the income generated by his securities is subject to income tax in his home country.

Of course, the client does not mind taxes. But he hesitated when he was advised by his banker to register a company with the BVI and transfer his portfolio to it.

Such a solution is presented as more convenient to the bank. The client is also on the plus side and will be able to reduce his costs. A win-win situation, as it were. But we have our doubts. First, we know what the BVI is and how difficult it has become to operate in their jurisdiction. Secondly, the client's country of residence is a party to the automatic CRS exchange and there is a law on CFCs.

The solution

  • Estimated CB portfolio yields and upcoming tax payments;
  • Made an update of information on the law on CFCs;
  • Estimated budget for registrations and company maintenance;
  • Compiled a Legal Opinion detailing the legal and tax implications of transferring the securities portfolio to a company proposed by the bank.

The result

As a result of the personal counselling, the client received up-to-date and complete information to make a decision.

We also gave our client some advice, because having helped entrepreneurs for over 10 years to register companies in different parts of the world, we are familiar with the benefits of not only the BVI.

But most importantly in this example, we believe that our analysis and recommendations helped the client make the right choice and avoid financial loss.

We have ensured:

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Reasonable source of funds

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Written a Legal Opinion detailing the implications

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Helped avoid financial losses