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A local firm has launched a new facility to help clients establish what they need to do to comply with new 'economic substance' regulations.
Estera's portal contains a set of questions, which aim to help clients understand the impact of the new legislation, based on their responses.
Once each entity completes the survey, Estera will list the applicable substance obligations, provide relevant template resolutions and outline the next steps the entity will need to take including opportunities to add substance where needed.
Economic substance legislation came into effect in the Crown Dependencies and British Overseas Territories earlier this year and requires relevant entities with tax residence to prove that they are genuinely doing business and not set up to avoid tax, with 'proof' including having qualified staff working in an office on the island, as well as business plans and evidence of advertising and marketing of the company.
Pictured: The new legislation is aimed at combatting 'shell' companies, which don't genuinely do business on the island, but are simply created to avoid tax.
Eric Anliker (pictured), Estera Group Counsel, said: “Our new portal and guide will help clients understand if their entity is in scope of the new law and if it meets the substance requirements. In case of substance gaps, we are offering solutions to test and further enhance substance compliance so that our clients meet the requirements. At the relevant time, we will also help prepare and submit economic substance reporting.
“We are able to tailor our solutions to meet our clients’ requirements – whether that is as simple as providing additional directors and/or providing bespoke solutions to the entity, so that it is compliant with the new legislation. Our economic substance solutions and client portal will make life easier for our clients.”
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