Offshore Company .How / do I declare to HMRC I am director even if absolutely no income or benefits is derived from that company ?
SimplyFinance Answers is a great place to start your research, but it is not a substitute for personalised, professional
advice. Please review our Terms of Use or Sign Up to ask a question or comment on an existing question. If you would
like to speak to an expert directly, use our Adviser Search to find an adviser in your area and contact them directly through SimplyFinance.
I am wanting to incorporate an Offshore company NOT to avoid tax but (a) because I need a seperate legal entity and (b) because the Offshore Co doesnt require any tax returns etc etc to be filed and also keeps my name discreet. Do I need to declare that I am a director even if I ,honestly, will make no money from it ?.
yippeeyah
1 year ago
SquareInsider
answered 1 year ago
Offshore Company Directors / HMRS Declarations ?
Hmmnnn - an interesting conundrum ! At base levels, you do not state if you are a UK national [ Domiciled, resident, or otherwise ] for tax liability purposes just for starters.
I would say that the main issue here seems to be a question of whether there is any legal requirement to declare a ' Director ' status of an Offshore Corporate entity to any IRD/IRS office ?
Simply, the best advice is to seek qualified legal opinion from a
UK professional consultancy on this sole issue at outset.
It may or may not be the case that: If you do not receive any form of income / director benefits,then possibly there is no requirement to file a declaration ?
Naturally, I would hazard a guess that if you state a beneficial interest in a Offshore Corporation, then you will most probably be asked to declare any gains & losses etc etc on respective tax declarations annually, or perhaps, apply for exemption under any rulings applicable. In parallel, it begs the question WHY you wish to be an offshore dircetor in the first place, if as you state, there is no financial gain or tax mitigation reasons for doing so ?
At a cost of some $ 5,000 USD for full O/S Company & Trust or Private Foundation structure protections, there are compelling reasons to initiate such procedures legitimately. However, they are only worth considering if the CGT, WHT, and IHT savings far outweigh potential liabilities by way of comparison.
Therefore, seek professional legal advice in resolving the filing notifications issue first, and then consult with suitably qualified offshore specialists in how prudently wise to set-up Offshore Corportions for optimum tax mitigation and confidentiality later !
report abuse
Hmmnnn - an interesting conundrum ! At base levels, you do not state if you are a UK national [ Domiciled, resident, or otherwise ] for tax liability purposes just for starters.
I would say that the main issue here seems to be a question of whether there is any legal requirement to declare a ' Director ' status of an Offshore Corporate entity to any IRD/IRS office ?
Simply, the best advice is to seek qualified legal opinion from a
UK professional consultancy on this sole issue at outset.
It may or may not be the case that: If you do not receive any form of income / director benefits,then possibly there is no requirement to file a declaration ?
Naturally, I would hazard a guess that if you state a beneficial interest in a Offshore Corporation, then you will most probably be asked to declare any gains & losses etc etc on respective tax declarations annually, or perhaps, apply for exemption under any rulings applicable. In parallel, it begs the question WHY you wish to be an offshore dircetor in the first place, if as you state, there is no financial gain or tax mitigation reasons for doing so ?
At a cost of some $ 5,000 USD for full O/S Company & Trust or Private Foundation structure protections, there are compelling reasons to initiate such procedures legitimately. However, they are only worth considering if the CGT, WHT, and IHT savings far outweigh potential liabilities by way of comparison.
Therefore, seek professional legal advice in resolving the filing notifications issue first, and then consult with suitably qualified offshore specialists in how prudently wise to set-up Offshore Corportions for optimum tax mitigation and confidentiality later !