Planning Considerations for Affected Individuals

As global tax regulations tighten and jurisdictions increase transparency, individuals with offshore structures must take proactive steps to safeguard their assets, ensure compliance, and optimise their financial strategies. Whether you already have offshore arrangements in place or are considering setting one up, understanding the key planning considerations is essential.

At Sandstone Tax, we help individuals navigate these complexities, providing tailored guidance to protect wealth while meeting international obligations.

Understanding Who Is Affected

You may be considered an "affected individual" if you:

  • Hold assets in offshore jurisdictions.
  • Are a beneficiary of offshore trusts or foundations.
  • Own or control offshore companies.
  • Receive income from foreign sources.
  • Have tax reporting obligations in multiple countries.

If any of these apply to you, strategic planning is essential to remain compliant while maximising the benefits of your offshore arrangements.

Key Planning Considerations

1. Full Compliance with Global Reporting Standards

Regulations like the Common Reporting Standard (CRS) and FATCA require financial institutions to share information with tax authorities worldwide. Affected individuals should ensure all offshore structures are properly disclosed and compliant with these frameworks to avoid penalties or legal issues.

2. Review of Existing Structures

Many offshore entities set up in previous years may no longer be fit for purpose under modern regulations. Regular reviews help to:

  • Ensure structures align with current legal and tax environments.
  • Identify unnecessary complexity.
  • Update documentation and governance as required.

3. Substance and Control Considerations

Tax authorities are increasingly scrutinising where decisions are made and who controls offshore entities. Ensuring your offshore arrangements demonstrate real, economic substance—such as local management, physical offices, or staff—is now a critical factor.

4. Succession and Estate Planning

Offshore structures can play a significant role in multigenerational wealth protection, but they must be integrated with your overall estate plan. This ensures:

  • Smooth transfer of assets.
  • Mitigation of inheritance taxes.
  • Clarity for beneficiaries.

5. Risk Management and Asset Protection

One of the key benefits of offshore planning is shielding assets from political, economic, or legal risks. However, these protections only hold if structures are set up and maintained correctly, with consideration given to local laws, treaties, and potential creditor claims.

Best Practices for Affected Individuals

  • Seek Specialist Advice – Offshore tax planning is complex. Work with experienced advisors like Sandstone Tax to ensure your strategy is robust.
  • Prioritise Transparency – Avoid secrecy and ensure all reporting obligations are met.
  • Stay Informed – Monitor changes in tax laws across all jurisdictions where you have obligations.
  • Think Long-Term – Offshore planning should support your future goals, not just immediate tax savings.

How Sandstone Tax Can Help

Our expert team provides comprehensive offshore planning services, including:

  • Structure reviews and optimisation.
  • Compliance audits for CRS and FATCA.
  • Jurisdictional risk assessments.
  • Succession and asset protection strategies.

Conclusion

For affected individuals, offshore tax planning requires careful, ongoing management to balance compliance with financial opportunity. By staying informed and working with trusted specialists like Sandstone Tax, you can secure your wealth, minimise risk, and plan confidently for the future.

Contact us today to discuss your offshore strategy and ensure you remain ahead of regulatory change.