Will we all end up being considered has-beens…? – and how to avoid hiring a has-been…

From a Hong Kong perspective Europeans regulations and administrative pressure are unbearable, the last news about the changes in VAT treatments are welcomed as it will necessarily put once again a free economy on the map. So, Hong Kong and other low tax jurisdictions are ready to onboard new clients.
Chinese and other Non-European traders selling in Europe are in a European point of view accused of abuse and even fraud by not paying VAT, achieving higher profit margins than European entrepreneurs, who do pay VAT abiding to more efficient controls.
Starting July 2021, the situation is supposed to change with the implementation of stricter controls in order to officially regain 7 billion of VAT, part of the 150 billion alleged fraud.
Why is this bad for the European digital economy?
Online platforms and market places will without any doubts enforce the new rules, governments are claiming that this would allow a fair competition and enhance the Intra-Europe e-commerce business. Clients will have to pay higher prices for their purchases.
Why is this SUPER BAD for the European Economy?
Governments and advisors are ignoring the DNA of most of these small traders, ignoring their qualities, fears and opportunities.
MOBILITY
Nobody is trapped in his/her country of birth, most of these businesses don’t even need an office location. Business partners are located worldwide, freelancers and other agents are paid by apps.
FEARS
Small traders are more concerned by administrative complexities than by taxes, they evolve in a very dynamic and high demanding environment and would prefer focusing on media buying instead of accounting. They are legitimate entrepreneurs and have fears to be accused on wrongdoings, if and only if, they are successful.
OPPORTUNITIES
The world is small, small traders are welcomed everywhere as they bring businesses, purchase power and future taxes. They know these facts; they are ready to move.
Hong Kong is welcoming small traders and has many advantages:
Dubai, Mauritius, Panama and other welcoming jurisdictions don’t have the same PROXIMITY advantages, making it longer to scale up the businesses.
Being a small trader in Hong Kong is a logical step to success.
Trusts has always been a vehicle to protect the wealth and assets of entrepreneurs. Opting for offshore trusts would depend upon the jurisdiction where the trust is going to be created. In practice, majority of ultra-high-net worth-individuals (UHNWIs) would oftentimes utilize trusts for their retirement, tax, investment, wealth, and estate planning schemes.
Most trusts vary in their characteristics, regardless if the trusts are in the form of revocable, irrevocable, discretionary, fixed and hybrid options. All these sorts of trusts would have advantages and disadvantages, depending on the use and its ultimate purpose.
No matter what type of trust is utilized, the settlor and its beneficiary can always be the same individual. This way, an arrangement with a third party is already null, and this structure is always a preferred option for UHNWI’s. In context, the trustee is normally elected by the settlor and its trustee would be expected to manage and take over the estate in case the settlor is incapable.
First of all it offers protection. An offshore trust is innately confidential and private in nature. This is why your wealth and assets covered under a trust will retain its privacy integrity since you are shielded with controls to protect you identity and prevent third parties from prying or taking access to that wealth or assets.
Taking into the form of tangible investments (e.g. capital, real estate, cars etc.), which makes it more convenient to transfer and manage overseas.
Deciding to create an offshore trust will definitely be a problem solving starter pack. We know fully well that divorce, inheritance, bankruptcy or asset seizure is a very messy problem, and merely having an offshore trust will give you a safety net to prevent your assets from being seized and acquired forcibly.
this is key in protecting your assets since countries of these offshore locations are not covered by laws of other countries. In other words, if you have an existing trust, you can be assured that if a foreign government tries to seize your assets, they will never get pass the laws protecting that trusts by the offshore jurisdiction where the trust is covered under. However, it is not advisable for US nationals to appear in trusts arrangements in any legal capacity since the US will definitely have a reach on those assets held in trusts.
If your goal is to protect your assets while benefiting from a very low tax obligation, then moving into an offshore trust is necessary. Although offshore trusts differ from the traditional trusts, going for the former will definitely offer more asset protection and security.
Whether you are protecting your assets from being covered on a marital property in a divorce, or preventing creditors from filing claims against it, or any other personal motivations whatsoever, one thing is for sure, your assets will be protected regardless of if your circumstances are unfavourable.
For your reference, there are other forms of trusts built solely to serve its original purpose. Usually it can be Marital Trusts, Credit-Shelter Trusts, Asset Protection Trusts, Dynasty Trusts, Spendthrift Trusts, Standby Trusts, and Charitable Trusts. Motivations in creating a trusts would differ from case to case basis, but oftentimes, trusts serve as a way to manage assets, to significantly reduce tax obligations or probate costs, preventing spousal coverage in a marriage, protecting the assets from creditors in a bad debt, and most importantly, the most popular use of trusts as being a way to ensure a multi-generation transfer of wealth.