Estera, a provider of corporate, funds and trust services, has launched an interactive economic substance client portal and guide to help clients establish how their entities are impacted by the new economic substance regulations.
Economic substance legislation came into effect in the Crown Dependencies and British Overseas Territories on 1 January 2019 and requires relevant entities with tax residence or, as relevant, incorporation and income in impacted jurisdictions to evidence adequate local resources, facilities and control over certain income generating activities.
Estera says it is extremely well placed to help clients understand and respond to the new legislation as it has a comprehensive understanding of its clients. In addition to its recognised jurisdictional and regulatory expertise, it has experience in gathering and reporting company data. Furthermore, Estera has a significant presence in jurisdictions affected by economic substance legislation.
The portal contains a set of questions, which will allow clients to understand the impact of the new legislation, based on their responses. Once each entity completes the survey, Estera will deliver a preliminary understanding of the applicable substance obligations (if any are relevant), provide relevant template resolutions and outline the next steps that the entity will need to take including opportunities to add substance where needed.
The importance of compliance with the new substance regulations cannot be understated given the potential liability for extensive penalties. Estera’s experts will help clients navigate the complexities of the new legislation and meet the requirements.
Eric Anliker, Estera Group Counsel, says: “Our new portal and guide will help clients understand if their entity is in scope of the new law and if it meets the substance requirements. In case of substance gaps, we are offering solutions to test and further enhance substance compliance so that our clients meet the requirements. At the relevant time, we will also help prepare and submit economic substance reporting.
“We are able to tailor our solutions to meet our clients’ requirements – whether that is as simple as providing additional directors and / or providing bespoke solutions to the entity, so that it is compliant with the new legislation. Our economic substance solutions and client portal will make life easier for our clients.”