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Podcast Ep. 9: Inna Ganz on CTA Affecting European Investors

In Episode 9 of the FinCEN Report Podcast, our CEO Jonathan Wilson spoke with Inna Ganz, the Director of Corporate Tax for USTAXFS in Zurich, Switzerland.

About Inna Ganz and USTAXFS

Inna is a CPA (licensed in California) who practices in Zurich, advising European investors on their investments in U.S. entities. Because the Corporate Transparency Act (CTA) will require reporting companies in the U.S. to disclose their beneficial owners (regardless of where they reside), many European investors in U.S. entities will find themselves having to provide their personally identifiable information to their U.S. portfolio companies.

USTAXFS is a consulting firm that specializes in assisting individuals and entities outside the U.S. with their unique tax reporting requirements for investments in the U.S. Ganz’s role at USTAXFS involves leading the corporate practice, dealing primarily with private equity and venture capital funds affected by U.S. tax rules due to their investments or U.S. based investors. Prior to USTAXFS, Inna worked with PricewaterhouseCoopers.

Unique U.S. Tax Reporting Limitations for European Investors

This podcast episode delves into the intricacies of the CTA and its impact on European investors. Ganz highlights the apprehension and unease among her clients regarding the disclosure obligations mandated by the law. She emphasizes the importance of educating investors about these requirements, addressing their concerns about beneficial ownership, substantial control definitions, and the scope of the law.

Compliance Strategies and the Future of Investment Structuring

Ganz offers her insights into how the CTA might influence investment structuring and compliance strategies. Despite the challenges, she believes that tax or compliance considerations rarely drive investment decisions solely. Ganz predicts that investors will likely comply with the new requirements without drastic restructuring of their investments, relying on the guidance of tax practitioners to navigate the complexities of the CTA.

Communication and Awareness Strategies

The conversation also highlighted the strategies USTAXFS employs to inform clients about legal changes, emphasizing the critical role of awareness and preparation. By engaging with fund managers and trust companies, Ganz and her team ensure that their clients are well-informed about the CTA and its implications. They stress the importance of proactive communication and education to mitigate the impact of these legal requirements on their clients’ operations.

Final Thoughts and Advice

In her concluding remarks, Ganz urges investors and entities to pay close attention to the evolving regulatory landscape. She warns of the severe penalties for non-compliance, underscoring the necessity of staying informed and prepared. Ganz’s advice is clear: do not ignore the implications of the CTA and leverage the resources and expertise available to ensure compliance and minimize risks.