US Tax Advisory Services - Capability statement

US Tax Advisory Services

Our capability

As people are becoming increasingly mobile, more than ever they are choosing to relocate across several jurisdictions throughout their lifetime. These changes bring a series of considerations from a tax perspective that can be both complex and difficult for those involved. Our specialist advisers are in a unique position to provide tax services to those who require expert attention to their advisory and compliance needs.

Increased mobility

The United States of America (US) occupies a distinct position on the global stage with its unique approach to taxation. Similarly, Australia also boasts one of the world's more intricate taxation systems. The combination of both provides challenges for global citizens.

The issues affecting US citizens and Green Card holders living in Australia are generally not well understood by local tax practitioners, and a lack of proper tax planning that considers both US and Australian tax systems may lead to significantly adverse tax consequences for these individuals. Many prudent planning strategies that are commonly employed for Australians are simply ineffective or may even result in double taxation or tax penalties for US persons.

Point of differentiation

Pitcher Partners has developed a unique service to address the planning issues that have a substantial impact on both Americans living in Australia and Australians living in the US.

We have a dedicated team focused on understanding both sides of the US and Australian framework and the impact on real people. Our team is dual-qualified across both Australian and US tax and can develop a comprehensive solution for you that fits within the unique elements of both systems.

Many lead firms focus on the Australian system and refer to international network partners for advice, this leaves clients in a challenging position having to interpret two separate pieces of advice drafted from different perspectives.

Pitcher Partners is focused on being able to deliver holistic advice to clients that is easy to understand and works effectively in both systems.

Turning challenges into solutions

Common challenges

Some of the common challenges facing clients with cross-border Australian and US tax issues include:

• Incomplete advice – Individuals are often advised to structure their financial affairs under the Australian tax system, leading to potential double-tax and unnecessary complexities.

• Non-compliance issues – Without proper advice individuals can easily become non-compliant with their tax obligations. Often there is a need to go through a voluntary disclosure process to come back into compliance.

• Structuring issues – Often individuals don’t understand the additional US tax liabilities and compliance burden associated with creating structures such as trusts and companies, which may not be as effective as they would be for regular Australians.

• Tax credits – Without a coordinated approach, clients may find that they miss out on tax credits available for Australian taxes paid due to timing differences in tax years. Likewise, ensuring that all US taxes paid that can be claimed as tax credits on the Australian side is crucial.

Effective solutions

By employing solutions our team can:

• Properly assess what the most desirable structure is from a US tax perspective.

• Restructure your affairs to be more US friendly without triggering Australian tax liabilities in the process, and navigated the often-difficult matter of system mismatches.

• Suggest methods to plan around assets to put you in the best position for renouncing citizenship or minimise income generated subject to ongoing US income tax.

• Analyse how to efficiently pick up credits for Australian taxes paid.

• Establish compliance by facilitating corrective actions to achieve.

Our services

Pitcher Partners has a multi-disciplinary practice that can prepare tailored solutions to meet your current and ongoing needs.

US and Australia tax return

Preparation of tax returns across two different jurisdictions can be complex, time-consuming and stressful. Our dual-qualified tax team will help streamline and manage the process for you, including:

• Preparation of US and Australian tax returns within the same team

• FATCA and other informational filings

• Resolution of ATO and IRS issues

• Planning to help minimise ongoing compliance obligations and costs

• Coordination with your other advisors

Disclosure of assets

If you have undisclosed assets or unfiled US tax returns, our experienced team can work with you to come back into the system and up to date, including:

• Full analysis of your tax affairs and circumstances

• Mutually agree on a disclosure strategy to bring you back into US tax compliance

• Preparation of back tax and information returns

• Review of voluntary disclosure forms and explanation to tax authorities

• Forward-looking tax planning to minimise ongoing tax compliance burdens

Expatriation from US citizenship

Renunciation of US citizenship or a Green Card is a major decision and without careful planning can lead to adverse US tax consequences. We can help you through the decision process and planning towards expatriation, including:

• Analysis of your US compliance history

• Tax planning to minimise any adverse consequences

• Holistic advice for both you and your family members to understand the longer-term tax implications

Residency and relocation

If you are planning a move to the US, we can work with you to plan towards this and put you in the best Australian and US tax positions, including:

• Advice on residency trigger-points and determination of optimal timing

• Restructuring of investments and corporate structures prior to relocation

• Calculation of any potential capital gains implications

Pensions and retirement

The US taxation of Australian Superannuation and Australian taxation of US pensions are equally complex. We can leverage our depth of experience to help as you move towards retirement, including:

• Working with your financial advisers to determine the best tax strategy

• Planning towards the most optimal timing for distributions

• Correct reporting and disclosure of pensions across both jurisdictions including 401(k)s, IRAs and SMSFs

Investment structuring

Using Australian investment structures such as family trusts and SMSFs can maximise you and your family’s tax position. However, when a US resident or citizen is in the family group, it is important to understand the implications. We can assist with:

• Structuring of Australian trusts and companies within a family group

• Ongoing assistance with US and Australian compliance for the family group

• Working closely to decide on annual distributions to maximise foreign tax credits

Estate planning

Unlike Australia, the US has an estate (death) tax and gift tax regime which impacts both US citizens, as well as regular Australians with US assets. Our team can help with:

• Structuring of your tax affairs to protect against US estate tax

• Managing re-allocation of assets within your family group structure

• Working hand-in-hand with your advisers on your estate plan

Property investments

If you are buying or selling US property as an Australian, or Australian property as a US citizen or resident it is important to understand the implications across both jurisdictions. We can assist with:

• Calculation of capital gains tax and taxes arising due to foreign mortgage repayment at sale

• Optimisation of investment structure for purchases

• Managing withholding tax upon sale

A team of experts

Daniel Sparks Partner | Private Business & Family Advisory, and Tax Advisory

Focusing on high-net wealth families, Daniel’s role is to provide advice and compliance support for a significant number of the firm’s most wealthy individual clients. With a focus on individuals, Daniel utilises his specialised tax and structuring expertise to maximise value from the perspective of the business owner, executive or investor, through a ‘big picture’ strategic planning approach.

Having gained substantial exposure to the US tax regime through his work for mobile executives and international families, Daniel now regularly presents to local tax practitioners on the complex topic of US and Australian cross border taxation.

Terry Hoban Executive Director | Private Business & Family Advisory

Terry's role as a trusted cross-border tax advisor enables him to support the movement of individuals and their families between Australia, the US and around the world.

Terry advises international executives and family groups on their global tax affairs, which allows them to focus on their personal and business goals.

He has a strong reputation for providing crossborder advice to high net-worth family groups. His expertise extends to voluntary disclosure and expatriation advice for US citizens, as well as estate planning and pre-immigration planning.

Noelle Abella Senior Manager | Private Business & Family Advisory

Noelle focuses on working with high net worth individuals and senior executives to manage and advise on their Australian and US tax affairs.

She has worked in both Australia and the US, assisting family groups and internationally mobile employees who are relocating between both jurisdictions. Noelle works hand in hand with her clients to provide holistic tax services that encompass both the management of their international tax compliance obligations, and the provision of cross-border tax advice that optimises their overall tax position.

Our knowledge

Pitcher Partners regularly host and present informative sessions on topical and technical US tax issues. These sessions are aimed at both fellow tax professionals looking to better understand the issues affecting their US clients as well as individuals and businesses with US connections. Some of our previous topics include:

Seminars and webinars

• US tax for Australians – 2023 webinar (hosted by Pitcher Partners).

• US Tax Seminar – Australian Planning for US Citizens (hosted by Pitcher Partners).

• Taxation Institute of Australia – Expat Issues and Complications: The Long Arm of the US and UK (NSW Tax Forum).

• Critical Point Network – International Tax Planning Series (roadshow for local accounting firms).

• 2022 U.S. Taxation webinar

Thought leadership

• Article – “ When does good Australian tax planning advice become a nightmare for US citizens? ” –Accountant’s Daily

• Article – “ Tax considerations for Australians who become US residents" – Pitcher Partners

• Article – "401(k)s, and other emoji accidents"LinkedIn

About Pitcher Partners

140+ partners

1,300+ people

6 independent member firms

Pitcher Partners has the resources and depth of expertise of a major firm, but with a boutique firm feel. We give our clients the highest level of personal service and attention. That’s the difference.

Pitcher Partners is an association of accounting and business advisory firms located in Adelaide, Brisbane, Melbourne, Newcastle, Perth and Sydney. We have a strong reputation for providing personal service and quality commercial advice to our clients across a broad range of industries.

We specialise in working with middle market businesses in Australia, including privately owned, foreign controlled, government owned and not-for-profits. Our clients require high technical standards, matched with a personal understanding and involvement in their affairs.

Each Pitcher Partners firm is also an independent member of Baker Tilly International, one of the world’s leading networks of independently owned and managed accountancy and business advisory firms. Our strong relationship with other Baker Tilly International member firms has allowed us to open many doors across borders for our clients.

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Pitcher Partners is an independent member of Baker Tilly International. Pitcher Partners’ strong relationship with other Baker Tilly International member firms, particularly in Asia Pacific, provides clients with access to international networks, opportunities and expertise to expand globally.

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Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.

Making business personal

Daniel Sparks

Partner | Private Business & Family Advisory, and Tax Advisory

p. +61 2 8236 7712

e. daniel.sparks@pitcher.com.au

Terry Hoban

Executive Director | Private Business & Family Advisory

p. +61 2 8215 7765

e. terry.hoban@pitcher.com.au

Noelle Abella

Senior Manager | Private Business & Family Advisory

p. +61 2 8215 7767

e. noelle.abella@pitcher.com.au

Pitcher Partners has the resources and depth of expertise of a major firm, but with a smaller firm feel. We give our clients the highest level of personal service and attention. That’s the difference.

Pitcher Partners is an association of independent accounting, auditing and business advisory firms located in Adelaide, Brisbane, Melbourne, Newcastle, Perth and Sydney. We have a strong reputation for providing personal service and quality commercial advice to our clients across a broad range of industries. We specialise in providing personal service and quality advice to high wealth individuals, small to medium public companies, large proprietary companies, local government, Not-for-Profit organisations and privately owned businesses. Our clients require high technical standards, matched with a personal understanding and involvement in their affairs.

Pitcher Partners is also an independent member of Baker Tilly International, one of the world’s leading networks of independently owned and managed accountancy and business advisory firms. Our strong relationship with other Baker Tilly International member firms has allowed us to open many doors across borders for our clients.

pitcher.com.au

Adelaide Brisbane Melbourne Newcastle Perth Sydney Pitcher Partners is an association of independent firms. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.