The corporate sector is always making inroads into the wealth management sector, and vice versa.

That is the firm belief of the FareWell team!

However, corporate taxation and estate taxation are governed by separate tax rules.

The Case of the Contribution-in-Kind

We believe that the entrepreneur’s assets and the company’s assets form a single entity.

Our approach, then, involves applying corporate engineering mechanisms to wealth management issues.

For example, how can an entrepreneur selling his company defer the 30% flat tax by using the “contribution-and-sale” method, which requires him to reinvest 60% of the sale price?

But above all, once the investment has been made, how can corporate structures be used to redirect the funds toward wealth-building projects?

Our team of tax attorneys, who are experts in tax planning, offers solutions. We believe we just need to think differently and take a tailored approach.

The Case of the Tax Audit

Here, too, the entrepreneur’s assets and the company’s assets form a single entity. For example, when a personal tax audit leads to a business tax audit—or vice versa—or when an audit is launched simultaneously against both the company and its executives or shareholders.

The rules that trigger a tax audit vary from one regional office to another.

However, several warning signs—which are common across the various regional offices—can trigger a double-check, as follows:

  • A discrepancy between the taxpayer’s lifestyle and reported income, compared to the company’s prosperity.
  • Exceptional cash flows between the company and its executive and/or shareholder.
  • More generally, any change in method or inconsistency in the financial transactions between management/shareholders and the company (compensation, loans, etc.)

The Farewell team is often called upon to manage both the oversight of the company and that of its executives and/or shareholders. The key here is toanticipate such audits so that the client and their accountant are technically and psychologically prepared to handle them when they occur.