Edition 3, June 2007
Vistra adds Luxembourg to its Global presence
I am proud to announce the latest step in our development as a Global fiduciary business: the acquisition of Benelux Trust, one of Luxembourg’s leading providers of corporate and fiduciary services. The deal is subject to regulatory approval in Luxembourg.
Established in 1990, Benelux Trust has a team of 45 highly experienced and well qualified professionals who provide services to mainly corporate clients. In addition to its high levels of expertise and service, Benelux has an excellent reputation as an employer, with most of its staff having worked there for many years. Benelux Trust, which will join the Vistra network as its Luxembourg office, will continue to operate with the same staff and under the same management.
This acquisition brings even greater scope to the Vistra Group, which will now benefit from access to the extensive network of tax treaties and the favourable legislative environment that Luxembourg has to offer. Combined with the highly skilled workforce, this step further enhances our ability to provide the international dimension our clients have become accustomed to.
The purchase of Benelux Trust fits into Vistra Group’s long term vision to build an Independent trust and corporate services provider through multiple acquisitions and organic growth. In addition and in line with this vision Vistra recently started with its activities In Cyprus and The Netherlands (see further in this newsletter). Vistra now employs some 125 people in seven countries and is therefore able to provide a full range of cross border solutions for wealth protection and the structuring of assets and cash flows.
These latest steps in the expansion of Vistra are a true reflection of our ethos of "Crossing borders, Creating solutions". In the course of the next months we will announce further expansion. In doing so we will always stay conscious of the fact that as a Group we need to be large enough to be able to provide the full range of cross border solutions, but small enough to guarantee the Personal and tailored service our clients deserve.
Bart Deconinck
Chief Executive Officer
Vistra and the America’s Cup
The America’s Cup is one of the sporting world’s most prestigious trophies. Taking place every three or four years, only one team gets to challenge the holder for the prize, having proved its worth against ten other would-be contenders in the Louis Vuitton Cup.
As a world leader in marine services, Vistra understands what it takes to compete with the best in an environment where every day requires consistent attention to detail. With this in mind, Vistra Marine Services attended the final round of the winner-takes-all, Louis Vuitton Cup 2007 in Valencia.
This is the first time that the America’s Cup has been staged in Europe and the final of the Louis Vuitton in June saw the last two boats compete for that all important challenger’s place.
With the stakes so high and the boats and crews of an exceptionally professional and evenly matched standard, it took everyone by surprise to see Emirate’s Team New Zealand complete the first ever clean sweep over Italy’s Luna Rossa team.
In spite of the whitewash, the racing still made for a magnificent spectacle, especially when viewed from private hospitality boats with access to restricted areas of the race course. During the event, Vistra Marine Services also enjoyed the use of exclusive on-shore and terrace facilities that provided our guests with an excellent vantage point from which to watch the parade of boats in and out of Port America’s Cup.
As the Formula One of sailing competitions and with team budgets in excess of 100 million euros, it is well known that appropriate and efficient financing has always played an important part in the America’s Cup. Vistra Marine Services understands the financial and administrative demands that maritime vessels place on owners and has the expertise to assist with the acquisition and operation of both yachts and aircraft. With two-and-a-half decades of experience, our specialised team is able to consider the many complex issues of these operations and to select the most secure, tax-efficient and cost effective ownership or leasing arrangements.
Like all of the America’s cup crews, Vistra Marine’s team has the wealth of knowledge and experience required to stay at the top of its field, delivering solutions that provide the best results for clients.
For more information please contact
Matthew Ruane
For more information on Vistra’s Marine & Aviation services, please click
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Vistra features prominently in the Swiss media
Following Vistra’s successful acquisition of Luxembourg-based Benelux Trust (see above), the highly-respected Swiss daily financial newspaper, L’AGEFI, has printed a front page story about the takeover in its edition of 18th May 2007.
The article, written by Mohammad Farrokh, gives a clear insight into the professional history of the Vistra board, not only describing them as being "one of the most prestigious trust management teams in Geneva" but also outlining the company’s strategic vision as independent suppliers of the highest quality, personalised trust management services.
Acknowledging that Vistra is a real alternative to those trust companies that have been integrated into much larger financial services providers, the article shows an understanding of the need for discretion and a minimising of the potential for conflicts of interest, which is something that is more probable with a trust company that operates under the umbrella of, for example, a banking brand.
Farrokh suggests that independence is a quality of the highest importance in the trust management sector and that this is something that Vistra clients can be assured of, particularly under the direction of such a strong management team. Walter Stresemann, Managing Director of Vistra’s Swiss office comments on this with the observation that, "10 years ago, I thought that independent (asset) managers were going to disappear. We are now seeing the opposite phenomenon evolving."
The article is rounded off with a look at the positive effects for the trust industry of the recent Swiss ratification of The Hague convention and the legal separation of the trustee and the trust holdings that it entails. Farrokh comments that Vistra clients will be well placed to take advantage of this development with the imminent creation of Swiss-based Vistra Trustees SA.
In a short time, Vistra has developed a strong reputation as a leading provider of trust management and corporate services. This success is due to the hard work and dedication of staff who are determined to find the right solutions for our clients. As the article notes, the world of trusts has become progressively more complicated, with multiple jurisdictions often having to be used in order to gain the maximum client benefit. With a presence in seven jurisdictions, the developing Vistra global network is in a prime position to take advantage of all that these centres have to offer.
Click here for the full article. Click here for an English translation.
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Tako van Ginkel joins Vistra
We are proud to announce that Tako van Ginkel has joined Vistra. Tako gained over 20 years of experience in trust and corporate services in the Dutch market serving some of the leading providers like Van Lanschot and MeesPierson. Until recently he was responsible for all marketing and business development activities for Fortis Intertrust in the Netherlands. Under the leadership of Tako van Ginkel, Vistra will focus on developing its corporate business in the Netherlands.
Our London Office
Along with clients, intermediaries and service providers, Vistra staff in London recently celebrated moving into new offices at 55, Park Lane.
The 2,800 sq ft Park Lane offices give us the flexibility to rapidly grow the number of professionals serving our clients. In addition to the main office area, there is a boardroom with seating for 10 people as well as two other meeting rooms and an exclusive ground floor entrance at 18, South Street. The Mayfair location was chosen because it is at the heart of the city’s private client and wealth management business. It offers us a strong and visible presence that is essential in one of the world’s major financial and business hubs.
Unique services
The London office employs multilingual staff that are able to help our clients with a variety of issues, including moving to the UK, as well as delivering bespoke solutions that suit specific structuring and taxation needs.
We are proud that Vistra London is one of the only Trust and Corporate service providers with the expertise and importantly, the necessary licence to deliver UK immigration services. By dealing with these issues on our clients’ behalf, many of the worries and concerns that accompany such an important decision are removed, making it possible for those concerned to concentrate on personal and family matters.
In addition, we have created Vistra Trustees (UK) Ltd, to enable our highly qualified structuring and accounting professionals to provide UK-based trust solutions to Vistra clients. This is the perfect complement to our existing trustee services in Jersey, Switzerland and New Zealand.
The success of the London office is reflected in the staff growth rate of 50% over the last year, a rate which is expected to increase during 2007.
Our Cyprus Office
With the lowest corporate tax rate in the European Union, it is hard to ignore the advantages that Cypriot companies benefit from but it is not just the tax system that makes Cyprus so attractive.
The island is well positioned at the crossroads of three continents and has a world-class professional infrastructure that includes international banking facilities as well as excellent legal and accounting services. With English widely spoken, doing business in Cyprus is uncomplicated and trouble-free.
However, with both local and international companies being taxed at a uniform 10%, the fiscal benefits of Cyprus International Business Companies ("IBC") cannot be ignored. Added to this is the fact that they are flexible enough to undertake a variety of activities (see box) which means they are ideal for meeting clients’ individual needs.
There are two main types of IBC: resident and non-resident companies. The main difference being that resident companies are taxed on their worldwide income, whilst non-resident companies are taxed only on their Cyprus source income but cannot benefit from the wide network of double taxation treaties that the island has in place.
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Main activities of Cyprus IBCs:
- International holding company for direct investment
- International trading
- Holding of property worldwide
- International royalty company
- Collective investment schemes
- Finance company
- Service company
- Agency structure
- Marine services
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Cyprus’ entry to the EU in 2004 has given the island a massive boost, not least to its credibility as an EU low tax jurisdiction. This status is confirmed by the 10% corporate tax system which helps Cyprus stand apart from those offshore centres that have gained adverse reputations due to their zero tax rates.
The future looks very strong for Cyprus and with an office in Nicosia, Vistra is ideally placed to take advantage of the benefits for international tax planning that the island has to offer.
For more information please contact
Nirmal Sooknah
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The principal tax benefits of a Cyprus resident IBC:
- Dividend income received in Cyprus is in general wholly exempt
- There is no withholding tax on payments of dividends and interest to non-resident individuals or companies
- Royalties paid to non-residents are in general exempt
- Profits from a permanent establishment abroad are exempt in Cyprus
- Losses incurred from a business abroad are tax deductible in Cyprus
- Exemption from capital gains tax on sale of non-Cyprus assets but sale of immoveable property situated in Cyprus is taxable
- 50% of interest income not accruing from ordinary business activity is exempt from corporation tax
- There are no thin capitalisation rules
- No CFC legislation applies
- Full advantage of a wide network of double tax treaties
- Being a member of the EU, it is entitled to the advantages of EC merger directive, the EC Parent-Subsidiary Directive and the EC interest and royalties directive.
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