Tannenbaum Helpern Syracuse & Hirschtritt, LLP
About Us Careers Contact Us Search
Home Practice Areas Industries Case Results Attorneys Publications Events Press Room

Structure of non-U.S. investment adviser’s U.S. broker-dealer on a tax efficient basis

Case Title: Structure of non-U.S. investment adviser’s U.S. broker-dealer on a tax efficient basis
Practice Area: Tax Law 
Case Desc:

Tannenbaum Helpern's client, a UK investment adviser formed as a UK limited partnership, sought to set up a U.S. broker-dealer to serve its U.S. clients. If the UK client owned the U.S. brokerage business directly, the UK client would have to file a tax return in the U.S. and could expose its UK income to potential U.S. tax. If the UK client formed the U.S. broker-dealer as a U.S. corporation, the corporation (rather than the UK client) would file a U.S. tax return and pay U.S. tax on its income, but the partners of the UK partnership would not be entitled to tax credits against their UK taxes for the U.S. taxes paid by the U.S. corporation.

Tannenbaum Helpern Tax Law attorneys worked with the clients' UK tax advisers to structure the client's U.S. broker-dealer as a U.S. limited partnership which filed an election to be treated as a corporation for U.S. tax purposes. This structure allowed the U.S. entity (rather than the UK parent) to be responsible for filing U.S. tax returns and paying U.S. taxes on its income. However, since the U.S. entity was treated as a limited partnership under UK law (with flow-through tax treatment), the UK partners were entitled to receive tax credits against the UK tax they owed on their share of the UK partnership's income for the U.S. tax paid by the U.S. partnership. This structure allowed the client to minimize the worldwide taxes paid on its U.S. based brokerage business.

Attorney(s): Michele Gibbs Itri, David Schulder 
Industry: Private Investment Funds 
Like us on FaceBook Follow us on Twitter Get LinkedIn with us Pin It! Email Us Print this Page

Sitemap |Terms of Use | Privacy | Attorney Advertising

Tannenbaum Helpern Syracuse & Hirschtritt LLP provides legal advice only to individuals or entities with which it has established an attorney-client relationship and such advice is based on the particular facts and circumstances of each matter. Contacting us through this site, or otherwise, will not establish an attorney-client relationship with us. Any e-mail or other communication sent to THSH or its lawyers through this site will not be treated as subject to the attorney-client privilege or as otherwise confidential and you should not include any confidential information in any such communication.