Trireme Confiance - Pensions for All

8/9/2019 Trireme Confiance - Pensions for All

http://slidepdf.com/reader/full/trireme-confiance-pensions-for-all 1/19

Explorer Lite Introduction

James Barber-Lomax&

Richard Garrod



• The Tax Gap• Opportunity• Explorer Pension - recap• Explorer Pension - Figures

• Explorer Lite• Explorer Lite - Fees• Case Study• Why Q

• Incentives

Agenda



Tax Gap Facts

• ! lot "uestions # $Will the %S close F!TC!&' or $gi(e up on trying tocatch non resident !)ericans&'

• For the tax year *+,,-*+,* ./0C reported that personal taxa(oidance and e(asion cost the %1 234, 5illion in taxes

• 6n the %S the latest 60S released 7igures are 7ro) *++8 sho9 thatpersonal tax e(asion and a(oidance has cost o(er:4

;<+ =6LL6O>

• 6s the 60S going to 5ac? do9n&&



Massive Opportunit

• <) =rit Expats # ho9 )any 7ir)s loo?ing 7or these clients&

• @4<) %S Expats # >O O>E LOO16>G !FTE0 T.6S /!01ETA



!xp"orer #ension

• %S Co)pliant and tax e77icient Pension 7or %S taxpayers

• Clients contri5ute lu)p su)s 7ro) a7ter tax dollars

• >o tax on gro9th # a5ility to in(est into PF6Cs

• =ene7its can 5e ta?en 7ro) age <+

• B+ lu)p su) # no %S or /altese Tax

• 6nco)e # partially taxa5le on capitalDgro9th split4

• Fees 7or deere Group discounted to ;*@<+ esta5lish)ent ;B+++ongoing4



!xp"orer Figures

• !(erage case sie ;<?

• Co)pletion ti)e reduced inline 9ith applications )ade

• 1ey 0egions 7or su5)issions # S9iterland and Philippines

• Feed5ac? #

• >er(ous

• >eed exa)ple o7 PF6C in(est)ent costs• Clients need to ha(e signi7icant lu)p su)s to Husti7y 7ees4



,I+I,

Investments into “Passive Foreign Investment Companies” for US Taxpayers !s introduced 5y Congress in ,38 the %S apply additionaltaxes and reporting o5ligations to %S taxpayers 9ho in(estinto Passi(e Foreign 6n(est)ent Co)panies J$PF6Cs'K4 The60S de7ine a PF6C as 444 any 7oreign corporation i7 @< percentor )ore o7 its gross inco)e is passi(e inco)e or i7 <+ percentor )ore o7 its assets are assets that produce or are held toproduce passi(e inco)e4 What this )eans is generally anynon-%S )utual 7und or in(est)ent 9rapper 9ill 5e treated asa PF6C4 These rules apply to %S taxpayers li(ing inside the%S and a5road4

To de)onstrate the i)plications one should 7irst considerthe position should an in(est)ent 5e )ade into a non-PF6C4

LetMs assu)e a %S taxpayer purchases stoc? o7 a %Sco)pany 7or ;,+++++ in Nanuary *++4 ,+ years later thestoc? is sold 7or ;,4,) - producing a taxa5le gain o7 ;,)4 !sthe stoc? 9as held 7or )ore than ,* )onths the %S 9ill treatthis as a long ter) capital gain and tax the gain at *+ assho9n in the ta5le 5elo9

Purchase Cost ;,+++++Sale Price ;,,+++++Gain Mae ;,++++++Tax !ate *+Tax Paya"le ;*+++++#et Investment !eturn ;+++++

67 the sa)e in(est)ent 9as )ade 5ut this ti)e into a non %Sentity that is classi7ied as a PF6C the position is (ery di77erent4%lti)ately the %S 9ill re-characterise the gain )ade as

ordinary inco)e spread e"ually across the in(est)entperiod4 To 9or? out the exact position it is li?ely that theser(ices o7 a %S Tax !d(isor 9ill 5e re"uired adding on7urther signi7icant costs4

6n this case the in(est)ent has )ade ;,) o(er a ,+ yearperiod4 There7ore ;,+++++ is dee)ed to ha(e 5een recei(ede(ery year 7or the past ,+ years4 This inco)e is su5Hect to taxat the highest )arginal inco)e tax rate 7or each year4=et9een *++ and *+,* the highest rate o7 %S taxation 9asB< rising to B348 in *+,B4

On top o7 this an interest charge is paya5le on the percei(edde7erred inco)e tax charge paya5le along 9ith the tax4

The 5elo9 ta5le sho9s the exa)ple 9or?ings and theulti)ate charges against a PF6C in(est)ent4

$ear Tax %&e Interest %&e

*++ ;B<+++ ;,,<+*++< ;B<+++ ;B3+@*++8 ;B<+++ ;@,*++@ ;B<+++ ;,,8,*++ ;B<+++ ;,,8,*++3 ;B<+++ ;,+,*+,+ ;B<+++ ;,,@

*+,, ;B<+++ ;,,@,@*+,* ;B<+++ ;,,+<*+,B ;B38++ ;,*3,@

T%T'( )*+,-.// )0,-/12

=y in(esting into a PF6C in this exa)ple the total taxes andinterest paya5le are ),,1-.123 The expected 7iling charges9ill 5e a 7urther ;*++++ )eaning the net in(est)ent return isreduced to )+*4-*41 9hich )eans this in(est)ent has costthe in(estor Hust under ;*@++++4

This clearly sets out 9hy it is i)perati(e 7or %S taxpayers tota?e appropriate ad(ice on in(est)ents as typically PF6Cin(est)ent rules and penalties are carried throughin(est)ent 9rappers and co)panies to the underlyingindi(idual4

For 7urther in7or)ation on this and possi5le solutions pleasecontact us atD

5 ames 6ar"er7(omax

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8 $ Ha)es45ltrire)epensions4co)

9ISC('IM8!S

This docu)ent has 5een 9ritten in general ter)s and should 5e seen as 5road guidance

only4 The docu)ent cannot 5e relied upon to co(er speci7ic situations and the reader

should not act or re7rain 7ro) acting upon the in7or)ation contained herein 9ithout

o5taining speci7ic pro7essional ad(ice4 Trire)e Pension Ser(ices J/altaK Li)ited and its

o77icers e)ployees and agents do not accept or assu)e any lia5ility or duty o7 care 7or any

loss arising 7ro) any action ta?en or not ta?en 5y anyone in reliance on the in7or)ation in

this pu5lication or 7or any decision 5ased on it4

Within the 5orders o7 the %nited States this docu)ent is intended to 5e solely read 5y

pro7essional ad(isors 7or general a9areness and to assist the) in their pro(ision o7 ad(ice

to their non-resident %S taxpayer clients4

6n this case # client in(ests ;,++?

and sells ,+ years later at ;,4,)4

67 non PF6C the ;,) gain is taxedat *+ - ;*+++++4

67 PF6C gain is taxed at top rate o7inco)e tax plus interest4 Total taxand 6nterest ;8*A

Filing costs o7 around ;*+++ ayear # i4e4 ;*++++4

It has cost your client $270,000to invest in a PFIC!



!xp"orer %Lite

• Sa)e Plan as standard Explorer 5ut OL 7or clients 9ishing to 7undregular sa(ings plans4

• /ini)u) 7unding le(elsD ;*+++ per )onth 7or ,< years;<+++ per )onth 7or ,+ years;,++++ per )onth 7or < years

• Pro(idersD 0LB8+ R Generali• Pro(idence Wealth co)ing online Q

• C" continue to 7und e(en i7 client returns to the %S

• C" trans#er existin policies!



!xp"orer Lite Fees

• Esta5lish)ent Fee - $%,&00

• !nnual Ongoing Fee - $%,&00

Less than $' a day!!!

We do not deduct ongoing 7ees until a7ter end o7 6nitial Period4 First

year annual paya5le up7ront4

Clients 9ishing to 7und lu)p su)s also should go into )ain Explorerto also 5ene7it 7ro) 9ider in(est)ent choice JStructured >otes etcK4



!xp"orer 's( )tandard Regu"ar

• ;*+++ a )onth 7or ,< years 9ith < returnD

• Standard 0egular ;B++++

• Explorer ;<,++++

• $(0,000 in )ax and Interest *aved

• >o reporting # no hassle # >O T!



*a+ple Case *tudy

• Client pays ;*+++ per )onth 7or ,< years

• Policy gro9s at < per annu)

• !t end o7 Policy Ter) # Pension is 9orth ;<,++++

*apita"+,./...

Gro0th(+12./...

;*? per )onth 7or ,+ )onths

70 o# the total value is Capital-i-e- .oney client has alreadypaid tax on-

)otal /alue $'%01



• !t retire)ent age Client can ta?e up to B+ as a lu)p su) 9hich is ta?en

as per the @+DB+ split

• /ax Lu)p Su) is ;,<B+++

#% M'(T8S8 %! US

T':;

B + C is ta ?en 7ro) t he Gro 9

t h - ; < 3 + +

@ + i s t a? e n 7 r o ) t h e C ap i t al - ; ,+ @ ,+ +

*apita"+,./...

Gro0th(+12./...

PCL*

)otal /alue $'%01



• Plan is no9 9orth ;B<@+++

• Trire)e calculate the )axi)u) pension inco)e using annuity ta5les

• istri5ution ta?en under %S $Si)pli7ied annuity' progra)

• Explorer Calculator sho9s the exact %S inco)e tax pro7ile

*apita"+323/4..

Gro0th(+1.5/1..

67 T<IS *A)! 138 TA9FOR +55: OF 67*OM!;;

Inco+e

)otal /alue $'71

;-+++ 6nc o)e



<uarter 5 = >h !xp"orer 7o0?

• *trea+lined reportin # allo9s 7or !)ericans to a(oid %S penaltiesand Hail 5y putting in B years o7 inco)e tax returns and 8 years o7F=!0s

• %S Tax year is C!LE>E0 year

• Loads o7 %S clients loo?ing to get co)pliant 5e7ore B,st ece)5erA

• %S Client LO/E to re7er 5usinessA

• Supple)entary notes a(aila5le 7or clients

• Na)es )o(ing to u5ai 7or glo5al support



6ncentive 3.15

• First Explorer Lite co+pleted application pac? 7ro) each o77icerecei(ed 5y Trire)e in /alta # 5ottle o7 cha)pagne

• /ost a)ount o7 applications 7or Explorer and Explorer Lite 5y ,st Nan7ro) region # leather 5usiness port7olio 7ro) !spinal o7 London

JExplorer Lite , Point4 Explorer * PointsK



6ncentive 3.15

)op sales person lo3ally as at %st 4uly 20%'

2 #ull corporate hospitality tic1ets to ho+e a+e at either

"rsenal or .an 5nited

Includin return #lihts and a hotel #or 2 nihts #or 2 people!

6'0 Points +ini+u+ to uali#y8



Explorer Pensions *u++ary

•Explorer Lite 7or 0egular Sa(ings

•Explorer 7or Lu)p Su)s

•Tax 7ree gro9th

• !5ility to in(est into PF6Cs 9ith no penalties

•0educed reporting o5ligations

•Tax e77icient retire)ent 5ene7its 7ro) age <+



4a+es 9ar3er:Lo+axE)ailD Ha)es45ltrire)epensions4co)

PhoneD U J+K @@,,,@8

;ichard <arrod

E)ailD richard4garrodtrire)epensions4co)

PhoneD U J+K @@,,+B3@

We5D 9994trire)epensions4co)

*ontact

mailto:[email protected]?subject=

mailto:[email protected]

http://www.triremepensions.com/

http://www.triremepensions.com/

mailto:[email protected]

mailto:[email protected]?subject=



This presentation has 5een 9ritten in general ter)s and should 5e seen as 5road guidance only4

The pu5lication cannot 5e relied upon to co(er speci7ic situations and you should not act or

re7rain 7ro) acting upon the in7or)ation contained herein 9ithout o5taining speci7ic pro7essional

ad(ice4 Trire)e Pension Ser(ices J/altaK Li)ited its o77icers e)ployees and agents do not

accept or assu)e any lia5ility or duty o7 care 7or any loss arising 7ro) any action ta?en or not

ta?en 5y anyone in reliance on the in7or)ation in this pu5lication or 7or any decision 5ased on it4

60S Circular *B+ isclosureD

To ensure co)pliance 9ith re"uire)ents i)posed 5y the 60S in Circular *B+ 9e in7or) you that

unless 9e expressly state other9ise in this co))unication Jincluding any attach)entsK any tax

ad(ice contained in this co))unication is not intended or 9ritten to 5e used and cannot 5e used

7or the purpose o7 JiK a(oiding penalties under the 6nternal 0e(enue Code or JiiK pro)oting

)ar?eting or reco))ending to another party any transaction or other )atter addressed herein4

@isc"aimer

Documents

Trireme Confiance - Pensions for All