Highworth Cyprus attended and was one of the key exhibitors at the INTAX Expo held in Kiev from 21st- 22nd May.
It was our great pleasure to exchange ideas and discuss matters pertaining to the fields of international business, taxation and investments including the current challenges in these industries, with delegates from more than 20 countries, and to have the opportunity to set the foundations for new co-operations while at the same time enhancing existing ones. .
The Founder and Managing Director of Highworth Cyprus, Rovertos Hanadjias had the opportunity to share his thoughts and knowledge derived from his experience in the sector of corporate structuring and taxation on the key issue of ‘Substance of non-resident companies’, providing the audience with a thorough overview and hindsight in the area, as a panellist amongst other distinguished panellists of the sector.
Mr. Hanadjias advised that when it comes down to Substance the first question one must answer is ‘What is the purpose of having a business located in a particular jurisdiction?’ And be able to justify this presence making both an economic and an operational sense, always to the satisfaction of any foreign authority which may be involved.
The issue of Substance cannot be dealt with via a particular formula, nor one size fits all, Mr. Hanadjias emphasised. It must be dealt with on a case by case basis. Each aspect in establishing substance needs to be reviewed separately examining the actual nature of the business and starting from having local directors, to having a fully operational office in the relevant jurisdiction, to having employees and subject to many further considerations.
For offshore jurisdictions, Mr. Hanadjias commented, matters tend to be more difficult as the operational justification may be extremely hard to establish. In such cases, the clients often need to seriously consider redomiciliation of the company on the offshore jurisdiction to a jurisdiction where business operations may be established and held.