Cayman LLCs – Unlocking Withholding Tax Recoveries through a Unique Investment Vehicle
For many years, the US investment vehicle landscape has had a strong affinity to Cayman domiciled structures. Immense benefits can be achieved for US tax-exempt investors as well as non-US investors in US structures through the use of offshore, Cayman Islands domiciled feeder funds. However, in setting up these structures, withholding tax (and the ability to reclaim taxes incurred on foreign investment income) is often overlooked.
Companies Turn to Withholding Tax Recovery Opportunities as Dividend Payouts Plummet
2020 has certainly been a challenging year and very few corporates around the world will be unaffected by the COVID-19 pandemic. It’s no surprise that dividend payouts have decreased drastically and in this uncertain time, it’s difficult to predict how long this downturn will last.
Withholding Tax: The Quintessential Guide to European Court of Justice (ECJ) Claims
What is the European Court of Justice in the context of Withholding Taxes? All countries that form part of the now 27-Member States of the European Union (EU) are subject to the laws and regulations set by the EU. The Treaty on European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU) are the two main sources of EU law.
Swedish Withholding Tax Case Win For US Investment Fund Spells Good News for Other Foreign Investors
Last month, the Swedish Supreme Administrative Court issued a milestone judgement stating that Swedish tax authorities should not deny withholding tax refunds (that were requested based on EU Law) to a US investment fund, based on the Fund’s legal structure.
WHT Refund Granted to Spanish Pension Fund by Italian Supreme Court
In several judgements regarding withholding taxes on Italian investment income, it came as a surprise to many when Italian tax courts found that the dividend withholding tax (WHT) regime applicable to non-resident recipients may be seen to be discriminatory in certain cases and thus in violation of the principle of the free movement of capital as evidenced by CJEU case-law. This line of reasoning has recently been upheld by the Italian Supreme Court (Corte di Cassazione) in their judgement (No. 1967/2020 published on 29 January 2020) where it ruled that a Spanish pension fund should be...
Withholding Tax: What Happens Post the Brexit Transition Period?
The 31st of January has come and gone and the UK has officially left the European Union. As the sign read outside the European parliament; “It’s not goodbye, it’s au revoir”. But let’s talk about goodbye.
Pension Funds, Are You Claiming the Withholding Tax that is Rightfully Yours?
Pension funds are often entitled to reclaim 100% of their withholding tax (WHT) on foreign investment income. But do all Pension Funds know this is the case? Are you claiming the full amount that is owed to you? With over $200bn in taxes withheld from pension funds alone globally, you should ask, how much of it belongs to you.
Finland Taxation Changes Spell Big Opportunities for Foreign Investors in 2020
Foreign investors should take advantage of the 2019-passed amendments to Finnish legislation related to the taxation of investment funds. These amendments came into force on January 1st 2020 and are aimed at making Finland a more attractive investment market as well as allowing Finnish investment management firms to explore international investment opportunities without added taxation costs.