Under the current regime, a notional interest is calculated on the capital made available to the Swiss permanent establishment that leads to a reduced taxable net profit of the Swiss finance branch in Switzerland.
Vistra Cyprus, being recently awarded the required licensed certificate, with registration number CIP 448, is now permitted to make such submissions
The real commercial risk for organisations that are not ready to take this challenge seriously won’t necessarily come from the existing set of competitors, which might use the same traditional approach.
In the meantime, for those with the luxury of time to plan ahead, it may be possible to implement share structures which do not fall foul of the new rules from the outset.
Mr Kosky praised the Guernsey courts for a “virtually paperless” trial and a judgment made within nine months of the hearing concluded, particularly, he said, when Guernsey had little track record of litigation of such a size.
Stringent requirements for the incorporation of Jersey companies, together with regulation and supervision of trust and company service providers, ensure this information is accurate and current.