Prepare for possible tax reform in Brazil: financial statements for private investment companies
Over the next few months, the Brazilian resident shareholder in an offshore company should weigh: what the potential tax burden means, adding up: the ongoing costs for maintaining the company, annual accounting preparation, and the potential tax payments. That way, these costs can be compared with alternatives, such as restructuring. Most of the time, other alternatives will increase costs or at best, break even, and may not be necessary.
But in order to make an effective analysis, it is important to use financial statements to evaluate these potential effects of the proposed tax reform for private investment companies.
By preparing financial statements, using the IFRS standards and reviewing the best methods offered by IFRS to account for financial investments, the shareholder could more easily evaluate the potential tax burden going forward.
Since the methodology utilized to prepare financial statements can make a huge difference for this analysis, Dartmouth is offering 2020 financial statement preparation for companies which have been using US GAAP or other standards, or which may have not yet prepared financial statements.
