The following experience reports provide a short overview, in which areas we already successfully assisted our clients.
The Blockchain topic in all its different forms and shapes increasingly gains notice within the general public as well as from individual countries. Liechtenstein strives to take a leading role in this area and provides and optimal entrepreneurial and fiscal environment. Besides the most commonly known cryptocurrencies like Bitcoin and Ether, the underlying technology will come with far-reaching changes through so called Smart Contracts and new innovative financing and fundraising methods.
Our experience and network enables us to holistically advise various clients and projects in the long term. Starting with the fundamental structural planning of an Initial Coin Offerings (ICO) resp. a Token Generating Event (TGE), via the design of the financial accounts, towards the fiscal optimisation of the ICO and the subsequent business activity such as the general classification of cryptocurrencies, as well as aspects in connection with VAT and the income tax.
During the last couple of years we were able to submit and to comprehensively advise our clients on more than 900 voluntary disclosures (§ 371 AO) and adjustments (§ 371 AO [German Tax Code]), drawing on the expertise of our fully authorised tax consultant licenced in Germany. As part of this work, we did not only declare the respective investment income but also the income from letting or leasing of real estate (foreign commercial properties, holiday homes), mandatory and private (foreign) pensions as well as income in accordance with AStG [law to prevent international fiscal evasion]. The assets concerned were located in particular in EU countries and/or Liechtenstein, Switzerland, Monaco, Andorra, Australia, China (Hong Kong), Canada and the USA as well as in offshore centres such as Bermuda, the British Virgin Islands and Panama.
The presentation of investment income in the tax declaration is a complex matter with significant tax risks. By setting up a comprehensive securities accounting process and considering the applicable national tax laws, we made our client benefit from extensive tax relieves. Additional benefits included tax-efficient asset allocation, simple and up-to-date reporting options as well as direct transfer of data from the accounting system to the tax invoice.
Non-profit foundations open up great opportunities in the worldwide support of cultural and scientific institutions and projects, but can potentially involve fiscal pitfalls. We were able to assist our client in planning and establishing a non-profit foundation recognised by the tax office and to provide consultancy services regarding the selection of institutions and projects as well as supervision. This also included the allocation of assets in accordance with the purpose of the foundation.