Make Good Use Of Your Offshore Status

[george]

Make good use of your offshore status

`So much to do, so little time!''George Bernard Shaw is said to have remarked on his death-bed. While the same degree of pre-destiny might not be as urgent for expatriates leaving postings after many years overseas as it was for one of history's most famous playwrights, there are still many things to consider before final departure. How many of us give sufficient time to the financial areas of our lives that could possibly affect us once we land back on the native soil we left five, 10 or even 20 years ago?

There is much to consider. The fortunate may have access to their companies' lawyers, accountants, tax specialists and consultants. For the vast majority, there will not be much more than a final ``Bon Voyage'' party, a slap on the back and good luck, before everyone departs early once the free drinks have run their course.

For the experienced expat who has taken the time to structure his/her financial affairs, the implications of the journey home are of no concern. For less experienced professionals or those who haven't considered the consequences of returning to the old tax environment, the potential costs to them or their loved ones who stand to benefit from their career earnings loom large.

In which case, it's a good idea to examine the potential dangers now, face them and be prepared rather than find yourself uttering the words ``If only I ...'' once back within the bounds of home-country revenue legislation. Solutions are available to legally avoid the taxman's grasp, not evade duty-bound commitments.

The importance of professional independent financial advice: In matters of finance, investments and taxation, there is no one rule for all; each nationality has a different set of rules.

For example, American expats will need different financial advice than British, Scandinavian or Dutch nationals. This makes it very difficult for us to generalise and advise across the board. One thing for sure is that it is important for those returning home to consider flexibility in financial structures should you change your mind or long-term plans.

Consequently, some of the questions that you may wish to ask your adviser to give you peace of mind may include:

Do I have any taxation, social security, compensation fund and corporate filing requirements to complete?

Do I amend, change or cancel any wills or should I consider the benefits of trusts, offshore companies, etc, to pre-empt any future contestment?

Is it wise to maintain my Thai and offshore bank accounts, minimise balances or close them altogether?

Do I cancel all offshore investments, pension plans, savings accounts, credit/debit cards, and other various transactional entities in favour of new domestic liabilities?

Should I consider consolidating all of the assets I have obtained offshore into a streamlined structure or, if I have not done so, open new offshore accounts and investment options before I or the family return to native shores ?

What is the reality in tax terms of any bank and investment accounts that I have opened over the years? Will they remain tax-exempt, how do I stand, how should I declare these assets for taxation purposes and how will that affect any gains I have made in the past?

The issues, reasons, merits and measures available to strategically mitigate one's position are as varied as fish in the ocean. Each can be different according to status, nationality, age, and whether you are prey or still operating in internationally protected waters.

Similarly, then, just as fish differ from ocean to ocean, and climate to climate, so too does the level of advice you receive. Insist your adviser take a full brief of your exact situation as well as your your plans moving forward. As mentioned previously, it's always beneficial to build in an element of flexibility should one change one's mind or become a ``victim of circumstance''.

In reality an attitude of ``Mai pen rai, it can wait until I get back home'', is certainly not to be recommended.

What are my options? One thing's for sure, expatiates returning home, whether temporarily or more permanently, must deal with all finance, investment, taxation and inheritance-related issues before leaving their present tax-sheltered positions. Ignorance of tax laws is no excuse when it involves the riches that you have toiled for over the years.

And in the words of BBC1's world-renowned wildlife expert David Attenborough: ``That, viewers, is a different planet, and one that we will explore in more depth in The World About Us next week, and future episodes to come.''

Questions to the author can be directed to Barclay Carrigan International on 02-653-1971 or by e-mail to [email protected]

--Bangkok Post 2005-10-24