At the end of September, I spent two weeks in Hong Kong, which sandwiched in the typhoon, making presentations and meeting with contacts and clients. As always, I wanted to share some of the pictures, but also some of the common situations I encountered.
Proactive v. Reactive – There has been a shift and now taxpayers are becoming much more proactive about their U.S. tax requirements. In the past, there were more meetings about “what did we do wrong” but now it is changing to “what can we do right.” Many businesses are identifying their U.S. shareholders or employees and ensuring that the activities of the business regarding these people are in compliance with U.S. tax law.
CRS v. FATCA – For several years we have been presenting on the interaction between FATCA and CRS, and that the U.S. is in a unique position to offer asset protection and decreased compliance requirements. As faulty structures in Hong Kong are invalidated many taxpayers are now seeing the U.S. as a potential investment option. For more on this click here.
Noncompliance Continues – There are still many taxpayers either discovering or coming to terms with their U.S. tax reporting obligations. Now that OVDP is closed, there are fewer options but even so the importance of addressing these issues is evident.
These are the trends from my personal experience and might not be representative of the overall tax climate. We will continue to strengthen our ties with the Hong Kong business community and look forward to our next trip. A special thank you to all of my gracious hosts, friends, and contacts. As with every trip, we were well taken care of and overwhelmed with the cooperation and hospitality.
