At Libor, we believe that the effectiveness of the tax planning is fundamentally based on its ability to achieve three core objectives:
Our tax planning and advisory services are focused on optimizing tax outcomes and managing risk, both in respect of strategic transactions and day to day operations.
At Libor, our team of experienced Cyprus tax professionals can assist our clients in providing tax efficient solutions for their international business operations.
We would first study their existing structure and would suggest a sustainable Tax Planning Structure that will have no or reduced tax liability. We will specifically look into the following categories depending on the circumstances:
This could involve the use of Cyprus Companies, International Trusts or other offshore tax vehicles (SPVS).
During the planning stage we will particularly look into the tax (technical) risks involved and offer our advice so that the risks are minimized and or eliminated. We achieve this by ensuring that key principles are identified from the outset so that they are clearly communicated and understood and that appropriate decisions are taken at the planning stage. The tax (technical) risks involved are:
A common diversion of actual corporate governance from the tax model is that actual management and operation of investment structure in reality diverts from the tax model. The result of diversion could mean different (higher) taxation:
As an example of a diversion of corporate governance from the tax model is that directors / management make key business decisions in the "wrong" jurisdiction which could lead to a denial of the double tax treaty and its benefits.
The key principle is: directors / management must make key business decisions in the "right" jurisdiction. Click to View
Other tax risks that need to be considered not only at the planning stage but throughout the life of the tax planning model include:
|Examples of tax structures |
Examples of tax structures frequently used by international businesses are: