Author: Niu Ltd

17 February 2016 – New York, NY

Klasko Immigration Law Partners is pleased to announce that it has been chosen to be the North American Regional Representative Office of the Investment Migration Council (IMC). The IMC will now have regional representative offices in Hong Kong, London and NYC.

The IMC is the only global, non-profit organization associated with investment-related migration. Based in Geneva, Switzerland, the worldwide association for investor immigration and citizenship by investment brings together the leading stakeholders in the field and gives the industry a voice. The IMC sets the standards on a global level and interacts with other professional associations, government and international organizations on issues related to investment migration. The IMC helps to improve public understanding of the issues faced by clients and governments in this area and promotes education and high professional standards among its members.

Klasko Immigration Law Partners Chairman Ronald Klasko stated “We are honored and feel very privileged to be the IMC’s representative for North America.  The US has one of the most active investment migration programs in the world, the EB-5 Visa program. Our firm has been advising thousands of investors since the inception of the program and therefore is uniquely positioned to be of great assistance to the Council and its membership.  We look forward to expanding our representation of high net worth individuals seeking citizenship by investment in many countries throughout the world.  In so doing, we will contribute our experience and expertise to the IMC membership; and our clients will benefit from the shared knowledge and best practices provided by the IMC.”

IMC CEO Bruno L’ecuyer, added “We are delighted to have Ron Klasko heading our North American office. Thanks to his wealth of knowledge and expertise, we are confident that our strong synergies will allow us to reach our objectives in setting the global standards, promoting professional development and high ethical standards among our members, as well as, bridging the gap between Academics, Government & Professionals”

 

About Klasko Immigration Law Partners

Klasko Immigration Law Partners, LLP has offices in Philadelphia, New York, and Chicago and has been selected as one of the top 5 business immigration law firms in the United States by the prestigious Chambers Global: The World’s Leading Lawyers for Business (Chambers and Partners) for the past ten years. The Firm is consistently rated in the top tier of immigration law firms by U.S. News and World Report and Chambers Global.  Our lawyers have also been recognized in Best Lawyers in America and as top EB-5 lawyers by EB5 Investors Magazine.

The Firm’s 24-member EB-5 Team is one of the largest and most respected EB-5 practices in the world.  It is led by H. Ronald Klasko who served 4 terms as Chair of the EB-5 Committee of AILA and as Chair of the Best Practices Committee of IIUSA.  He is globally recognized as a leader among EB-5 lawyers. The firm’s EB-5 Blog is considered a “must read” for cutting edge EB-5 information, and its website serves as one of the most expansive and trusted sources on EB-5 law.

 

For more information, please see www.klaskolaw.com  or www.eb5immigration.com.

To access the data sheet on the Portugal (GRP) program results for the month of January 2016, please click here

 

Prime Minister Justin Trudeau’s pitch to convince the world’s richest that Canada is a good place to invest came too late for a pilot program intended to lure 60 millionaire immigrants to Canada in an effort to give the economy a boost, CBC News has learned.

“There has never been a better time to look to Canada,” Trudeau said this week before a crowd of the world’s business elite at the annual meeting of the World Economic Forum in Davos, Switzerland.

• ANALYSIS | Trudeau ministers hope Davos speed dating builds relationships
• 60 millionaire immigrant investors to be offered permanent residency

The Immigrant Investor Venture Capital program, a revamped version of a program critics once denounced as “cash for citizenship,” was launched last January by the former Conservative government following a commitment it made in the 2014 budget.

The one-year pilot was meant to attract rich immigrants willing to make a non-guaranteed investment of $2 million up front to be held for 15 years in a fund managed principally by BDC Capital, the investment arm of the Business Development Bank of Canada, in return for permanent residency. Applicants also had to prove they had even more money in the bank.

But a year after it was launched, the pilot program has yielded just seven applications from potential international investors and no permanent resident visas.

“The demand for this pilot program has been low,” said Nancy Caron a spokeswoman with the Department of Immigration, Refugees and Citizenship Canada in an email to CBC News this week.

Dashed expectations

The previous Conservative government thought it would result in hundreds of applications from rich immigrant investors.

“The program will be open for applications from Jan. 28 to Feb. 11, 2015, or until a maximum of 500 applications are received,” the previous government announced around this time last year.

‘We are reviewing options to determine next steps, but no decisions have been made yet. We want to ensure our immigration system grows the economy and also focuses on family reunification.’– John McCallum, minister of immigration

A year later, Canada is still waiting to welcome its first new millionaire immigrant investor.

“A total of seven applications are in process,” said the departmental spokeswoman this week, adding that as of Dec. 30, 2015, four applications had passed a first-stage review and three had passed a second-stage review and were “in process.”

Only when an application reaches the second-stage is it then given a “pass or fail,” Caron explained.

With all seven applications still in process, “No permanent resident visas have yet been issued under this program,” she said.

‘A blank cheque’

The previous Conservative government tightened up the rules under the new pilot after acknowledging that immigrant investors under the old “ineffective” program were not likely to stay in Canada over the long term and contributed “relatively little” to the Canadian economy.

While the Conservatives were hoping to have better luck with this program than they did under the former Immigrant Investor Program, Richard Kurland, an immigration lawyer and policy analyst based in Vancouver, said the pilot was “broken” from the get-go.

“Canada was asking prospective immigrants to write a blank cheque and hope that 15 years down the road they would see any return on that investment,” Kurland said in a phone interview with CBC News.

“It’s no surprise to see that the wealthy immigrant investor crowd would look at other immigration possibilities to come to this country in order to grow our economy, create jobs and find a secure place for their own families.”

The first sign of trouble came two weeks after the program was launched, when the deadline to apply was immediately extended from Feb.13 to April 15, 2015.

But with demand still low, the federal government reopened it a month later saying it continued “to test the demand” of the pilot.

“The Immigrant Investor Venture Capital Pilot Program will greatly benefit the Canadian economy by attracting immigrant investors with strong business skills,” said then-immigration minister Chris Alexander in a press release.

“Keeping program standards high will ensure that Canadians continue to benefit from our immigration programs …and we warmly welcome anyone who wants to apply.”

In the end, the program remained opened for the entire second half of the year, starting on May 25 until it closed on Dec. 30, 2015.

Kurland said this is an opportunity for the new Liberal government to retool the fund.

“With a fresh turn of the page nationally, politically, it’s time to focus on a re-design of Canada’s immigrant investor fund.”

According to Kurland, Immigration Minister John McCallum’s “strong background in finance” will make it easier for the government to make some changes to the program.

McCallum worked as a chief economist at one of Canada’s big five banks and a professor of economics before he entered politics.

‘Reviewing options’

But the minister isn’t yet saying what changes he might consider.

In a written statement sent to CBC News Friday morning, McCallum said, “We are reviewing options to determine next steps, but no decisions have been made yet.”

“We want to ensure our immigration system grows the economy and also focuses on family reunification.”

Reached by phone in Calgary, Conservative immigration critic Michelle Rempel said the point of a pilot program is “to see what works and what the uptake is.”

“Our broader policy was looking at ways to hit our economic immigration targets… and our broader consultations supported that,” Rempel said in a phone interview with CBC News Friday afternoon.

“I want the government to consult Canadians prior to posting their immigration levels report,” she said with the House of Commons set to resume next week.

That annual report lays out how many immigrants Canada will accept under each of the immigration streams for the year head.

It was to be released in the fall but was delayed because of the general election.

 

Source: CBC

To access the data sheet on the Golden Residence Programme (ARI),  please click here

The government set out its proposed changes to the fees for visas, immigration and nationality applications and associated premium services for 2016–17.

Specific fee changes for 2016–17 will apply after further legislation is laid in Parliament by April this year.

The new legislation will set maximum levels on the amounts for broad categories of fees that can be charged by the Home Office over the next 4 years. There are no current plans to raise fees to the maximum levels.

These increases will allow us to reduce taxpayer contributions towards the border, immigration and citizenship system and ensure that by 2019–2020 the system is self funded by those who use it.

The main changes are:

• small increases (2%) for visit, study and work visas
• fees for settlement, residence and nationality will increase by 25% in 2016–17
• targeted increases have been applied to premium services, such as the priority visa service

 

Fees for all sponsorship categories will stay at the current rates.

 

The new fees for applications can be found in the fees table.

 

You can read more about additional changes in the Fees Order

 

From:UK Visas and Immigration

London, December 2015

Fragomen LLP has been appointed as the Investment Migration Council (IMC) Regional Representative Office (RRO) for Europe.

Last November, Fragomen Worldwide, the world’s leading immigration services provider, joined with other leaders in the fields of immigration and citizenship-by-investment to establish the Investment Migration Council (IMC). IMC Advisory Committee members include Austin Fragomen, partner and chairman of the Fragomen Worldwide Executive Committee and Nadine Goldfoot, partner.

The Geneva-based nonprofit organisation was created to improve public understanding of the issues faced by investors and governments, promote education of the field, and propagate professional standards and ethics. The IMC is initially opening offices in New York, London and Hong Kong. Professor Dr. Dimitry Kochenov, chair in European Union Constitutional and Citizenship Law at the University of Groningen in the Netherlands, is serving as IMC chairman.

“Investor immigration is a diverse, rapidly growing field being driven by a variety of factors, including growing private wealth in emerging economies, interest in visa-free travel, and high-net-worth individuals seeking insurance against political, social or economic upheaval at home,” said Nadine Goldfoot. “The IMC will serve as the primary organisation for the field, bringing together key stakeholders and giving the industry an official voice. As the Europe RRO we will we working closely with our colleagues in the industry to promote best practice and share thought leadership throughout the region.

As a world leader in immigration, Fragomen has extensive knowledge of investor migration policies and programs around the world. The firm’s Worldwide Private Client Practice provides assistance to high-net-worth individuals, their families and their advisors as they navigate the complexities of alternative citizenship and residency programs in jurisdictions worldwide.

 

About Fragomen Worldwide

The Fragomen Worldwide organisation is recognised as the world’s leading global immigration services provider. The firm employs more than 500 attorneys, solicitors or similar immigration professionals, and over 1,500 additional immigration professionals and staff located in more than 40 offices in 20 countries. Each Fragomen office is established either as a law firm or an immigration consultancy, in accordance with applicable local law and regulation. For more than 60 years, Fragomen has represented a broad range of companies, organisations and emerging businesses, working in partnership with clients to facilitate the transfer of employees worldwide. For detailed information about Fragomen’s practice, please visit www.fragomen.com.

 

 

 

The Investment Migration Council (IMC), the worldwide association for Investor Immigration and Citizenship-by-Investment, head quartered in Geneva, has recently opened an office in Dubai, represented by Citizenship Invest and also in Hong Kong, represented by Mandeville & Associates.

These ‘touch points’ serve to spread the reach of the IMC and its work throughout some of the key markets in the world. They have their own committees, and contribute to elevating standards regionally. It is also expected that the offices will organize a number of briefings, provide business opportunities and act as information stations for governments, the public and media.

Bruno L’ecuyer, IMC CEO, commented that ‘the opening of these representative offices is only the beginning as from here the council will expand to London and New York by the end of 2015, offering a coherent global framework of ethical and professional conduct to this relatively new industry.’

L’ecuyer further mentioned that ‘both of these offices add further value and help immensely on improving public understanding and transparency of investor immigration and citizenship programs.’

Citizenship Invest is classified as one of the leading companies licenced by various governments to process citizenship with a longer-standing track record within the industry and Mandeville & Associates, with over 20 years of solid experience in the industry will further support global finances. Both will act as representatives in their respected business hub.

 

About the IMC

The Investment Migration Council (IMC) is the worldwide association for investor immigration and citizenship-by-investment, bringing together the leading stakeholders in the field and giving the industry a voice. The IMC is a Swiss registered non-profit association with its headquarters in Geneva.

 

About Citizenship Invest

Citizenship Invest (CI) is recognized as a leading specialist in Citizenship by Investment programs. CI has processed citizenship applications for families in more than 40 countries across Middle East, Asia, Africa and Europe. The company started 6 years ago and is now one of the few selected which are licensed by various Governments to process their citizenship and this year has been carefully selected to represent the IMC in Middle East.

 

About Mandeville & Associates

Established in 1996, Mandeville & Associates Ltd. offers counselling services intended for international business people of every continent desiring to settle in the United States of America, Canada and Europe.

With our head office in Hong Kong and professionals permanently based in Beijing, Singapore and Shanghai, our firm offers a wide range of immigration and consultancy services with a team of specialized lawyers and multilingual supporting staff at our four locations.

In the last 10 days, I have met with no less than four people whose companies are relocating them to the United States. These people are being asked to relocate for periods of up to three years, with the possibility that the assignment could be extended further. There are a number of issues that arise when an individual relocates to, and potentially becomes a tax resident of, the United States. Below are nine issues that should be addressed in such a situation. Each issue is discussed in brief, and a U.S. tax advisor should be consulted if any of these situations apply.

1. Make sure your bank will still work with you.

Many banks now have policies, for non-tax reasons, that they will not work with people resident in the United States. Before you move to the United States, make sure that your bank will continue to work with you while you are in the United States. If not, consider moving the bank account to an institution that will work with you while in the United States, or alternatively, consider having an external asset manager, who is registered with the U.S. Securities and Exchange Commission (SEC) as a registered investment advisor, be your contact person. Otherwise, the financial institution will close the account.

2. Does your portfolio hold investment funds?

The United States has very strict rules as to the taxation of offshore investment funds, such as Luxembourg SICAVs. These can be subject to disastrous tax consequences if held by a U.S. tax resident. Prior to moving to the United States, individuals should review their portfolio to determine whether or not they have offshore investment funds. While it would be simplest for such individuals not to hold offshore investment funds while resident in the United States, if they do, they should consult with their U.S. tax advisor and investment manager to evaluate whether or not such investments should be held while in the United States. In many cases, there are possibilities to address holding such investments, and these should be discussed with the relevant advisors.

3. Do you have an interest in a trust?

The United States has adverse U.S. tax rules for U.S. tax residents who settle or benefit from certain non-U.S. trusts. These rules can apply to trusts settled by an executive before the executive relocates to the United States. Further, these rules can apply to distributions the executive receives from a trust settled by other persons. Individuals relocating to the United States should review existing trust arrangements prior to moving to the United States. In addition, they should review any plans of family members to establish trusts from which the individual might benefit. Individuals relocating to the United States should consult with their U.S. tax advisors to discuss planning to mitigate the adverse rules applicable for U.S. tax residents with interests in non-U.S. trusts.

4. Stepping up basis in assets.

Unlike many countries, the United States does not give an individual a new acquisition value in his or her currently held assets when he or she moves to the United States. Instead, the assets retain their original acquisition value. This can lead to high capital gains taxes if the assets are sold while resident in the United States. Thus, it becomes imperative that prior to a move to the United States one steps up the basis in his or her assets to the current fair market value. Oftentimes this can be as simple as completing a sale and a repurchase at fair market value of the assets within an appropriate timeframe, ensuring that there is adequate distance between the two. Thus if the assets are subsequently sold, the price at the repurchase will be used as the cost basis for U.S. tax purposes, reducing the potential capital gains tax.

5. No holding companies.

It is quite common for people around the world to hold their assets through a holding company. Oftentimes these have significant tax benefits, depending on the tax jurisdiction at issue. In some jurisdictions, however, such structures do not provide a tax benefit and, moreover, can actually be extremely tax disadvantageous. In the United States, there is a set of rules called the Controlled Foreign Corporation (CFC) rules that can cause income to be taxed at significantly higher rates than it would otherwise be if the income is earned by a non-U.S. company owned by a U.S. resident. While a detailed description of the CFC rules is beyond the scope of this article, a U.S. tax advisor should be consulted if any non-U.S. holding companies are owned.

6. Evaluate the issue of assets held through community of heirs.

Many people in Switzerland hold assets that they inherited through what is known as “community of heirs.” There are many misconceptions regarding the tax treatment of the community of heirs. Some people take the view that these are taxed as estates. Other times people take the view that they are taxed as simple partnerships. The law in this area is very unclear and can lead to undesirable results if no additional planning is done.

7. The importance of timing.

In comedy and tax planning, timing is everything. For an executive relocating to the United States, timing is critical. The timing of an individual’s U.S. residency start date impacts when the individual first becomes subject to U.S. tax as a resident. Timing the recognition of income and losses (and coordinating that timing with the residency start date) can yield significant tax savings. Many executives can control some aspects of when they recognize income or losses; for example, by having dividends paid from controlled companies, accelerating collections, or recognition of bonuses and services income. Due to the importance of timing, individuals are well advised to consult with their U.S. tax advisors early when considering a relocation.

8. Planning for a potential long term move to the United States.

While people are always excited about a short term relocation to the United States, it is common for some people to end up staying in the United States indefinitely. While income tax for U.S. purposes is an important concern, the U.S. estate tax, which can be as high as 40 percent of the taxable estate, can be extremely devastating. Planning can be done in advance of a move to the United States to help mitigate the impact of the estate tax, if there is even a remote chance that the individual might stay in the United States long term.

9. Do not keep money undeclared.

Even if one is going to the United States for only a short period of time, one should under no circumstances fail to report income or assets to the United States. The United States taxes its residents on a worldwide basis, unlike most other nations, and income earned outside of the United States must be reported and subject to tax. Foreign income and assets are also subject to special reporting requirements under U.S. law and the United States is extremely aggressive in this area. A U.S. tax advisor should be consulted on the tax and reporting obligations that might apply to an individual relocating to the United States, who will likely have significant income and assets in his or her home country.

 

Author: Marnin Michaels, Partner, Baker & McKenzie Zurich, Switzerland

www.bakermckenzie.com