2025 Australian Federal Budget Summary On Tuesday, March...
In our 13th installment of the Family Office...
2024 Australian Federal Budget Summary On Tuesday 14th...
What is the Generation-Skipping Transfer Tax (GSTT)?
The Generation-Skipping Transfer Tax (GSTT) is imposed by the Internal Revenue Code (sections 2601 to 2664) at the Federal level as an estate... Read more
Which U.S. States Impose Estate and Inheritance Taxes?
Some U.S. States impose their own estate and inheritance taxes. It is important to note that these taxes apply in addition to any... Read more
U.S. Tax Implications with Australian Inter Vivos and Testamentary Trusts
It is common for Australian estate planning purposes, to plan for the succession of control of an inter vivos trust either by Will... Read more
U.S. Citizens with Non-U.S. Citizen Spouses
It is not uncommon for a U.S. citizen to have a non-U.S. citizen spouse. However, U.S. tax law treats non-U.S. citizen spouses (even... Read more
Intestacy in a Cross-Border Context – How would your Estate be Distributed?
“Intestacy’ refers to the circumstances when a person dies without a valid Will. In a cross-border context, this could occur where: 1. a... Read more
Should you have an “International Will”?
If you have assets in two or more jurisdictions, an “International Will” could make your estate planning simpler as it would extend to... Read more
Incapacity – Who would Manage your Interests in Two (or more) Countries?
If you are mentally incapacitated and unable to make decisions for yourself, or if you are unable to attend to decision making and... Read more
Are you Tax Compliant, and if not, what does this mean for Your Estate?
Did you know? Obtaining probate (i.e. the process of having a decedent’s Will recognized by the courts and the appointment of the executor... Read more
The U.S.- Australia Estate Tax Treaty Explained
Australia no longer imposes any estate or inheritance taxes (death duties having been abolished in 1979). The U.S. imposes Federal gift and estate... Read more
Indian entities and U.S. taxation: U.S. shareholders of Indian corporations
In our blog series on the U.S. taxation of Indian entities, we have discussed how Indian corporations are generally taxed in the U.S.... Read more
What is the U.S. Estate Tax Rate?
For the 2020 tax year, the U.S. Federal Estate Tax threshold is US $11.58 million (up from US $11.4 million in 2019) per... Read more
What are the U.S. Estate Tax Implications for Non-Resident Aliens Holding U.S. Assets?
It is possible for a “non-resident alien” (i.e. a person who does not live in the U.S. and who is not a U.S.... Read more
Indian entities and U.S. taxation: Income not effectively connected to the U.S.
U.S. federal tax law categorizes income earned by foreign corporations in the U.S.: - effectively connected income (ECI) with U.S. trade or business;... Read more
Key considerations for U.S. investors on abolition of dividend distribution tax in India
The memorandum to Indian Union Budget 2020-21 (Budget 2020) states that the present-day dividend distribution tax (DDT) was introduced to ease collection of... Read more
Modification of Indian Tax Residency Rules
The global movement of Indians from India to other countries has finally caught the eye of the Indian administration. India seems to be... Read more
Indian entities and U.S. taxation: U.S. partnerships
The flow through framework for partnerships in the U.S. means that the taxes are applied to partners rather than a partnership entity. It... Read more
Restructuring your US operations – Part 3: Anti-avoidance rules in the Internal Revenue Code
Where a corporate reorganization results in a transfer of property to a foreign corporation (such as an Australian registered company), the normal nonrecognition... Read more
Restructuring your US operations – Part 2: US corporate reorganization relief
As with the Income Tax Assessments Acts, the Internal Revenue Code (IRC) provides for tax relief (“nonrecognition”) for corporate reorganizations (under sections 354-368).... Read more
Restructuring your US operations – Part 1: why, and how you would convert an LLC to an Inc.
Many Australian business owners often fund their initial expansion into the US market through a limited liability corporation or “LLC”. An LLC is... Read more
Indian entities and U.S. taxation: Operating in the U.S. as a branch or subsidiary
The business activities of an Indian entity operating in the U.S. may or may not create a physical presence. Before expanding your Indian... Read more
Indian Entities and U.S. Taxation – Part II
Indian entities generating revenue from conducting trade or business within the U.S. have effectively connected income (ECI) and taxable in the U.S. Broadly,... Read more
Indian entities and U.S. taxation – Effectively connected U.S. income
An Indian entity doing business in the U.S., unlike a U.S. incorporated entity, is generally taxable in the U.S. ‘on its taxable income... Read more
The Australian Bushfires – how you can help support Australia while ensuring that donations are tax deductible in the United States.
The bushfires are having disastrous consequences across Australia. It is with great sadness that each day we witness, from afar, the destruction of... Read more
Woodpoint Capital: 2020 Investment Letter
The recession debate: A recession occurs on average every seven years. But in the US, the bull market is roaring into its 11th... Read more
Is your Australian related party loan “debt” or “equity” for US tax purposes?
If you are attempting to determine how your related party loan could characterized for US tax purposes, there are a number of considerations... Read more
Is your Australian trust a “grantor trust” for US tax purposes?
The US taxes a “United States Person” (defined to include a ‘US resident’ or a citizen) on a worldwide basis, whereas non-US persons... Read more
A nonresident individual married to a U.S. citizen may be required to file a U.S. tax return if…
Generally, the number of days an individual spends in a country is one of the important determinants of taxability in such country. But... Read more
The 2019 OECD Tax Statistics – how does the US and Australia compare?
The OECD has released its annual Revenue Statistics Report comparing the tax data for all OECD countries . The OECD Tax Statistics The... Read more
Rules of POEM – Part II
An earlier blog on POEM started with a discussion on the determinants of residential status of a foreign corporation in India. The Indian... Read more
CGT and foreign resident beneficiaries: TD 2019/D6 and TD 2019/D7
The Australian Taxation Office recently released draft Taxation Determinations TD 2019/D6 and TD 2019/D7. The combined effect of the draft Determinations is that... Read more
What to do before you start establishing your entity in the U.S?
Expanding business operations into the U.S. can be a lucrative opportunity to grow business if the structural decisions are made at the right... Read more
CGT Main residence exemption removed for Foreign residents
The Australian Senate passed the Treasury Laws Amendment (Reducing Pressure on Housing Affordability Measures) Bill 2019 overnight. If you are a “foreign... Read more
Reporting compliance for foreign trusts in the U.S.
In our previous blog for our U.S - India channel, Foreign Trusts in the U.S., we discussed about the treatment of foreign trusts... Read more
The U.S. GILTI rules do not correspond to Australia’s CFC attribution rules for the purposes of the Australian hybrid mismatch rules: TD 2019/D12
The ATO has just released draft Tax Determination TD 2019/D12 in which it confirms that section 951A of the U.S. Internal Revenue Code... Read more
Hierarchy of the CFC and PFIC Code Sections
If you look back to our definition of a PFIC, it appears as though a foreign company can concurrently be a CFC and... Read more
Should You File a Form 5471 or Form 5472?
If your business is expanding into the U.S. then you will need to determine exactly which forms to file and how much income... Read more
FBCI Exclusion One: The De Minimus Rule
In our earlier blog post, Digging Deeper into Subpart F Income: Foreign Base Company Income, we discussed how FBCI must be included as... Read more
Double Tax on U.S sourced Capital Gains
The ATO have successfully argued in the Federal Court of Australia in the case of Burton v Commissioner of Taxation [2019] FCAFC 141... Read more
Subpart F Income
What is Subpart F Income? It relates to international tax and is income earned within a Controlled Foreign Corporation (CFC) that will be... Read more
Subpart F Income: The Briefer
As mentioned in the previous blog, So You Own a CFC, What Now?, we introduced the fact that controlled foreign corporations must pay... Read more
What does ‘two-up’ have in common with selling Australian real estate while living in the US?
I am often asked how can a capital gain associated with your main residence that is tax-free in Australia be taxable in the... Read more
So You Own a CFC, What Now?
In our whitepaper, The Expansion of “United States” Taxpayers: How the TCJA Drags Unassuming Foreign Companies and Individuals under its Scope, we analyze... Read more
Stage Five Clinger: How the TCJA Latches onto Unassuming Foreign Persons through Constructive Ownership
In our whitepaper, The Expansion of “United States” Taxpayers: How the TCJA Drags Unassuming Foreign Companies and Individuals under its Scope, we discuss... Read more
Part Three of the TCJA Attribution Rules: Down the Rabbit Hole
In our blog post titled “Owning” Shares that aren’t Yours: The Code’s Confusing Definition of “Ownership”, we introduced how U.S. Shareholders of a... Read more
Part Two of the TCJA Attribution Rules: The Expansion Upward
In our blog post titled “Owning” Shares that Aren’t Yours: The Code’s Confusing Definition of “Ownership”, we introduced how U.S. Shareholders may be... Read more
Family Attribution Rules
What is Attribution? Attribution is an artificial concept used for tax purposes to prevent tax avoidance. This artificial concept treats a person/taxpayer as... Read more
“Owning” Shares that aren’t Yours: The Code’s Confusing Definition of “Ownership”
The Code employs various definitions of what constitutes “ownership” in various circumstances, and with regards to the classification of foreign companies as CFCs,... Read more
The “Controlled Foreign Corporation” Regime: What is a CFC Anyway?
While the U.S. tax system appears to be federal in nature, the U.S. uses the Internal Revenue Code to cast a wide web... Read more
Is a Nonresident Alien’s Sale of a Partnership Interest a U.S. Trade or Business?
Our previous post, The Code Fails to Define a “U.S. Trade or Business,” even though You’re Still on the Hook for Paying Taxes... Read more
The Code Fails To Define A “U.S. Trade Or Business,” Even Though You’re On The Hook For Paying Taxes On It
As mentioned in our prior post, Even Nonresident Aliens may be Taxable in their U.S.-Sourced Income, a nonresident alien will be liable for... Read more
Even Nonresident Aliens may be Taxable on their U.S.-Sourced Income
A nonresident alien of the United States will be subject to U.S. taxation if they have income that is “effectively connected” with a... Read more
U.S. Residents are taxable, U.S. Persons: So, What is a “U.S. Resident”?
Under the Internal Revenue Code a Person is liable for fulfilling their U.S. tax obligations if they are a “resident” of the United... Read more
The U.S. Tax Terms You Need to Know
By way of introduction, the following blogs series is on the various tax topics found in our article, The Expansion of “United States”... Read more
The U.S. Tax System: The TCJA’s attempt to move from Worldwide to Territorial
I wanted to take the chance to break down some of the big picture topics mentioned in the article, The Expansion of “United... Read more
Introduction on the United States Federal Income System
In our whitepaper, The Expansion of “United States” Taxpayers: How the TCJA Drags Unassuming Foreign Companies and Individuals under its Scope, we discuss... Read more
IRS programs to get into compliance for misreported foreign assets
Members of wealthy Australian families who relocate to the US, or members of US-based families moving to Australia, are often doing so without... Read more
How does the new era of information exchange impact your tax filing?
With the new wave of global information exchange, governments are placing international tax compliance on the forefront. Nations across the globe have made... Read more
Do you have unreported foreign assets or bank accounts?
The new wave of information reporting is shaping the way global economies work together to tackle tax avoidance and financial crimes. As a... Read more
What is the New Voluntary Disclosure Program?
The IRS released a memorandum containing procedures for the Updated Voluntary Disclosure Practice (UVDP) on November 29, 2018. Similar to the OVDP, the... Read more
FATCA Has Covered You!
In our whitepaper, Interaction of Indian and U.S. Tax Laws, we examined and explained the interaction of Indian and U.S. laws. In doing... Read more
Foreign Trusts in the U.S.
Under the U.S. tax laws, foreign trusts (i.e., non-U.S. trusts) may be classified as grantor or nongrantor trusts. Generally, nongrantor trusts are not... Read more
U.S. Shareholders and Recharacterization of Income
Generally, under U.S. tax law, a foreign corporation may be classified a controlled foreign corporation (CFC) where it has U.S. shareholders. Additionally, a... Read more
Distribution from Trust to Beneficiaries
Trusts or foundations have been the most widely used entity form to pool, protect and administer assets. Our whitepaper, Interaction of Indian and... Read more
Trusts for Transitioning Assets to Next Generation in India
Trust structures offer asset protection and beneficial governance mechanisms to Indian families with Indian residents and nonresidents members. However, foreign trusts should be... Read more
Tax Reporting Considerations in India
As I have stated in my other blogs that India lays out reporting requirements based on the residence of the taxpayer. The U.S.... Read more
Capital Gains on Transfer of Capital Assets (Part 2)
Continuing from the last blog on capital gains, this blog specifically addresses how capital gains are to be taxed in case of nonresident... Read more
Capital Gains on Transfer of Capital Assets in India (part 1)
Our whitepaper titled Interaction of Indian and U.S. Tax Laws lays out a brief outline on capital gains tax in India. A resident... Read more
Foreign Exchange Control Considerations
The Indian currency is restricted, that is, remittance in or outside India are regulated under the Indian exchange control law. Foreign Exchange Management... Read more
Black Money Act in India
India has entered into information sharing agreement with the United States (U.S.) under the Foreign Account Tax Compliance Act (FATCA). This has been... Read more
Dividend Repatriation from India
An entity incorporation in India depends on the long-term objective of the business founders, viz. to earn profits or secure gains from selling... Read more
Foreign Businesses Entering India
A wide tax rate differential between foreign and Indian resident corporations in India may allure external businesses to operate in India either by... Read more
Permanent Establishment in India
A foreign (non-resident entity) in India may carry out business activities with Indian resident related or third parties. Where it does business with... Read more
Establishing an Indian Base
An ideal form of entity depends on the purpose of the entity. For example, an ideal entity to pool assets of a high... Read more
When Foreign Residents Become US Shareholders…
The latest tax reforms under the Trump administration seem to despise the global entrepreneurs. The increasing disclosure requirements, allocation and attribution of profits... Read more
US Tax Residence Rules for Natural Persons
There has been an increase in the movement of high net worth individuals from India to the U.S. Having covered the residence rules... Read more
Indian Tax Residence of Unincorporated Entities
In addition to individual and corporate taxation, unincorporated entities are also taxable in India. Few examples of unincorporated entities are limited liability partnerships... Read more
Indian Tax Residence of Onshore and Offshore Trusts
A trust is considered an Indian resident where the control and management are wholly or partially located in India. The use of Indian... Read more
Forms of Trusts in India
In our whitepaper titled Interaction of Indian and U.S. Tax Laws, I had discussed different forms of trusts in India. Basic forms include... Read more
Trusts in India
Oliver Wendell Holmes said, “Put not your trust in money, but put your money in trust.” Trusts or foundations are common forms of... Read more
The MLI’s Principal Purpose Test: The Concept & India’s Position
On November 24, 2016, the OCED/G-20 lead Base Erosion Profit Shifting ("BEPS") introduced the formulation of Multilateral Instruments ("MLI") in an effort to... Read more
Rules of POEM
The last blog discussed the determination of residential status of a corporate entity in India. A corporate entity is considered an Indian tax... Read more
Corporate Entity: Indian Tax Residence Rules
The tax residential status in India of a corporate entity that the individuals collaborate to form is different from such individual owners. The... Read more
Individual: Basis of Taxation in India
Our readers would now know that India follows residence-basedtaxation. Our whitepaper titled Interaction of Indian and U.S. Tax Laws further illustrates the broad... Read more
Individual: Indian Residence Rules
Out whitepaper titled Interaction of Indian and U.S. Tax Laws discusses the residence rules in India and the U.S. In this blog, I... Read more
Why is Residence an Important Question?
The mobility of individuals has been in high concentration as students, expats and business owners and investors are increasingly relocating from their home... Read more
Trump Tax Reform Puts Domestic Business First and Foreign Founders Last
Written by: Peter Harper and Janpriya Rooprai Illustrations by: Janpriya Rooprai Peter heads Asena Advisors in North America and a member of the... Read more
US Market Entry Guide: Top 3 business drivers that should impact entity choice
If you have a specific US market entry tax question please complete the ‘Have a tax question?’ form on the right hand of... Read more
US Market Entry Guide: What are my entity options?
If you have a specific US market entry tax question please complete the 'Have a tax question?' form on the right hand of... Read more
US Market Entry Guide: Top 10 issues to consider
For many international business owners, the US market is the holy grail of consumer markets. Technology is making it easier than ever to... Read more
Entity Classification Of Foreign Companies And Trusts In The US And Penalties Associated With Getting It Wrong!
In our experience the area that carries the most risk is the failure of a taxpayer to properly classify an Australian entity under... Read more
Penalties For Non-Disclosure Of Foreign Financial Assets
The FBAR, together with the FATCA regime, requires U.S. taxpayers to disclose foreign financial assets subject to certain threshold requirements. Due to the... Read more
OVDP to end – If you have intentionally been non compliant with US taxes the time to act is now!
In the publication featuring the Tax Specialist in February 2017 titled “Nowhere to Hide – An Update on Remediation Options for U.S. Taxpayers... Read more
The Multilateral Instrument and The Changing Framework of Permanent Establishment
On November 2016 over 100 jurisdictions concluded negotiations on the multilateral convention to implement tax treaty related measures to prevent base erosion and... Read more
Wine, Wine, I need more Wine: While Trump’s Tax Reform is Delivering on The Election Promises Made to his Base, the Tax Reform has a Biting Impact on Foreign Businesses!
In my Whitepaper “United States Entity Considerations in the Trump Era”I discussed the opportunities that will exist for companies that wish to headquarter... Read more
Global Innovators Are Paying For Trumps Tax Reform? Have You Received The Invoice For Your Share?
In the Whitepaper “United States Entity Considerations in the Trump Era” we discussed headline tax reform but we did not discuss the deep... Read more
The US will not be my 1st Choice as a holding company jurisdiction, will it be yours?
In a whitepaper, that I had published in the Tax Specialist in April of 2018, I made the bold assertion that people may... Read more
What Is A Check The Box Election And Should A Foreign Corporation Make One?
Our whitepaper, “United States Entity Considerations In The Trump Era” outlined how the check the box regime can impact Australian businesses. While that... Read more
I have an online business selling products to US customers – am I required to pay tax in the US?
In our US Market Entry Guide we talked about the timing and drivers for establishing an entity in the US. We are often... Read more
Should I fund my US subsidiary with debt or equity?
In our US market entry guide we talked about flow through taxation and how it can be positively or adversely impact a foreign... Read more
Understanding Sales Tax in the US
If you have a specific US market entry tax question please complete the ‘Have a tax question?’ form on the right hand of... Read more