Abu Dhabi, Bahamas, Bahrain, British Virgin Islands, Cayman, China, Curaçao, Cyprus, Dubai, Gibraltar, Guernsey, Hong Kong, Isle of Man, Malta, Mauritius, Portugal, Seychelles, Singapore, South Africa, Switzerland, The Netherlands, Turks & Caicos Islands, United Kingdom. Introduction Europe Americas and Middle East Fiscal News Legal News In The Press Contact + Info The Caribbean and Asia Automatic exchange of tax information – coming soon This is moving inexorably closer and at quite a fast pace. The OECD is asking that all states automatically exchange tax information in respect of any bank account opened in their jurisdiction by a resident of another state. More than 65 countries and territories, including all OECD member states, have now publicly committed to introduce automatic exchange, while more than 40 of these have committed to implement as early as 2017. In other words, it is highly likely that all countries will soon adopt rules and regulations similar to the US FATCA Act, which finally came into force as of 1 July. The exchange of information will focus on beneficial ownership of accounts whether they are in the name of an individual, trust, company or other entity. We can only repeat our usual advice – clients need to ensure that their entities and structures are fully compliant in all respects. Tax planning is not dead. It is alive and well, but the emphasis must be on legitimate and compliant structures. Any arrangements 3 4 6 10 14 18 21 23 that rely on less than full and frank disclosure are bound to fail and may cause huge financial and practical problems for the client. The Global Competitiveness Index The World Economic Forum has published its annual ranking of countries according to their efficiency and competitiveness. The Europe top ten in order are: Switzerland, Singapore, Finland, Germany, the US, Sweden, Hong Kong, the Netherlands, Japan and the UK. The bottom three – out of 148 economies – are Burundi, Guinea and Chad. Most offshore financial centres are not included but I suspect that they would generally be ranked as highly efficient and competitive. Fiscal News Legal News In The Press Introduction Contact + Info It is no surprise to see Singapore and Hong Kong so high in the rankings. They are both excellent places to do business and Hong Kong is consistently voted as the place with the least constraints on entrepreneurs wishing to start a business. These two jurisdictions are also the gateway to China. Anybody wishing to set up a business would be well advised to look at what they have to offer. Middle East and Asia Americas and The Caribbean Her Excellency Shaikha Mai bint Mohammed Al Khalifa (front, third from left), Bahrain’s Minister of Culture, opens the Sovereign Art Foundation IKNS Prize 2014. Sovereign Art Foundation (SAF) In April, in partnership with the Ibn Khuldoon National School (IKNS), SAF launched The Sovereign Art Foundation IKNS Prize 2014. Artwork by 800 IKNS students was displayed at the Arts Centre of the National Museum of Bahrain for an exhibition (top) opened by Her Excellency Shaikha Mai bint Mohammed Al Khalifa, Minister of Culture. The artworks were then sold in aid of The Royal Charity Organisation to support 5,000 orphaned children in Bahrain. This is an exciting new venture for SAF and our first major event in the Middle East. We thank everyone who supported us. Hong Kong artist Adrian Wong won the 10th edition of the Sovereign Asian Art Prize on 10 May, which was sponsored for the fourth consecutive year by Swiss private bank, Bank Julius Baer. The winner received a trophy and US$30,000. The winner of the Schoeni Prize, the award for the public’s favourite artwork, was Anton Del Castillo from the Philippines who previously won the same award in 2010. Both winners were announced at the Charity Gala Auction and Dinner at the Four Seasons Hotel in Hong Kong where the finalists’ artworks – except for the winning piece, which was acquired by SAF – were auctioned by Christie’s, raising a total of US$285,400, which is divided equally between the artists and SAF’s charitable projects. We also raised over US$440,000 during the evening to continue SAF’s work in assisting, rehabilitating and educating disadvantaged children from around the region. ® The Sovereign Group 2014 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by means, It costs only US$500 to send a child through one of our programmes for a year and the results are remarkable. Please contact electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of The Sovereign Group. The [email protected] for more information or to donate. information provided in this report does not constitute advice and no responsibility will be accepted for any loss occasioned directly or indirectly as a result of persons acting, or refraining from acting, wholly or partially in reliance upon it. Sovereign Trust (Bahamas) Limited is licensed as a Financial Corporate Service Provider – Licence No: 153 / File No. 157. Sovereign Sovereign news (Cayman) Limited is licensed by the Cayman Islands Monetary Authority with a companies management. Licence No. 558456. Sovereign Trust (Gibraltar) Limited is licensed by the Financial Services Commission of Gibraltar – Licence No: FSC 00143B. Sovereign Asset Management Limited is authorised by the Financial Services Commission of Gibraltar to conduct investment business. Sovereign Sovereign continues to expand in several of its offices worldwide. I am pleased to announce the recent appointments Insurance Services Limited is authorised by the Financial Services Commission of Gibraltar as a general and life insurance intermediary. Sovereign Trust (Channel Islands) Limited is licensed under a Full Fiduciary Licence by the Guernsey Financial Services Commission. of Andrew Galway and Stephen Griffiths as managing directors of our offices in Singapore and Malta respectively. Reference No: 2005108. Sovereign Trust (Isle of Man) Limited is licensed by the Isle of Man. Financial Supervision Commission as a Neil Entwistle has also been appointed as a director of Sovereign Insurance Services in Gibraltar. Finally, we have appointed Corporate Service Provider. (Licence No. 43,215) and as a Trust Service Provider (Licence No. 43,521). Sovereign Trust (Malta) Limited is licensed by the Malta Financial Services Authority as a Trust Service Provider (Licence no. C26143) and as a Retirement Scheme Julie Balcombe to develop Sovereign’s brand in Nairobi, Kenya. Administrator under Sovereign Pension Services Limited. (Licence no. C56627). Sovereign Trust (Mauritius) Limited is licensed as a Management Company. Licence No. Mc00006831. Sovereign Trust (Netherlands) BV is licensed as a Trust Company by De Nederlandsche Editor Christopher Owen Bank (DNB). Sovereign Trust (Seychelles) Limited is licensed by the Seychelles International Business. Authority. Licence No. ICS056. Sovereign Trust (Singapore) Pte Ltd is regulated by the Monetary Authority of Singapore as a Trust Business Licence holder (No. TC Design Saman Sung Howard Bilton 000020-1). Sovereign Trust (TCI) Limited is licensed by the Financial Services Commission of the Turks & Caicos Islands. Licence No. 029. Printer Asia One Printing Limited Chairman of The Sovereign Group page 3 Introduction Europe Americas and Middle East Fiscal News Legal News In The Press Contact + Info The Caribbean and Asia Malta amends Maltese Citizenship Act at behest of EU Algirdas Šemeta, EU commissioner responsible for taxation, said Switzerland and the four other countries now accepted that automatic exchange of information must be at the core of their relations with the EU in taxation. “I have assured member Malta agreed to amend the Maltese Citizenship Act (L.N.450 of 2013) by introducing, on 29 January 2014, a requirement states that our negotiations with these countries will continue with speed and ambition, with the aim of presenting results for applicants to demonstrate an effective residence status in Malta prior to the grant of Maltese naturalisation. The move before the end of the year,” he said. followed discussions with the European Commission. Austria’s Finance Minister Michael Spindelegger said: “It’s clear that we cannot wait until a deal with third parties is concluded.” Last November, Malta’s parliament approved an Individual Investor Programme (IIP) introduced under the Maltese Citizenship Act to enable qualifying “high value” applicants to be naturalised and receive a Maltese passport. Malta is a member of the European Union, a member of the Schengen borderless travel area and has a visa waiver agreement with the US. Sovereign Comment Applicants are required to contribute €650,000 to an independently-managed National Development Fund. Spouses and These are important developments and further updates will continue to be published in future editions. Regular children of applicants for Malta citizenship are each required to contribute €25,000 and unmarried children between the readers will know that Sovereign has always conducted its business on the basis that any corporate or trust structuring ages of 18 and 25 and dependant parents €50,000 each. should always be fully compliant. It is also important to note that rules change and may expose an existing structure to unwelcome scrutiny. Any readers worried that they may fall into this category are encouraged to contact their The programme was criticised by the European Parliament, which