blogup
blogdown
bloggroup

March 25, 2025

CFO Services

Case Study 3 – Tax Advisory for Single Family Offices

by Sreedhar K V

Background 

Some of our clientele include prominent Single-Family Offices (SFOs) managing diverse assets across different geographical locations. These clients usually have distinct entities operating under their umbrella and require a comprehensive tax advisory service to optimize their tax liabilities and achieve significant savings while ensuring legal compliance. 

The objective for such clients is mostly to devise a tax strategy that could: 

  1. Optimize the tax burden across all entities. 
  2. Ensure compliance with Indian tax regulations.
  3. Maximize the client’s philanthropic deductions. 

Our Role 

We have provided solutions in the following areas across different clients: 

Change in Accounting Methodology:

Entrust assisted the client in re-evaluating and modifying the accounting methodology. This change facilitated better tax savings, ensuring that the financial structure was aligned with the latest tax laws, enabling optimal deductions. 

Building a Corpus Outside India:

Entrust advised the client on the strategic decision to build a corpus outside India, particularly in tax-friendly jurisdictions such as the Cayman Islands. Our team ensured the necessary tax compliance for offshore investments, effectively managing cross-border taxation issues while adhering to international financial regulations. 

Ring-Fencing of Entities:

One of the SFOs operated with four separate entities, each having its unique financial dynamics. Entrust helped in the optimal ring-fencing of these entities to ensure tax-efficient structures. By segregating the risks and income streams, we were able to reduce the potential tax exposure while providing clear financial visibility and protection. 

Philanthropic Planning:

A key component of the client’s wealth strategy was philanthropy. Entrust played a pivotal role in structuring the client’s philanthropic donations in a manner that allowed them to claim the maximum allowable tax deductions. This involved identifying charitable entities and causes that could yield tax benefits while aligning with the client’s values. 

Impact  

Entrust’s interventions resulted in tax savings of approximately ₹2 to ₹2.5 crores for one of our family office clients. The tax-efficient structures put in place not only minimized tax liabilities but also provided the client with greater flexibility in managing their financial operations across borders. 

Through a combination of strategic accounting changes, international asset structuring, and thoughtful philanthropic planning, Entrust has been able to deliver substantial tax savings for its SFO clients. Our approach is holistic, ensuring that all aspects of the family office’s financial operations are optimized for both compliance and tax efficiency, resulting in a comprehensive solution that meets the client’s long-term wealth management goals. 

 


More like this

Investment Advisory

Active vs. Passive Portfolio Management: Why Active Management Still Holds an Edge in Indian Markets

In recent years, the global investing conversation has tilted in favor of passive investment strategies—low-cost index funds that track broader markets without attempting to outperform them. However, in the Indian context, active portfolio management still holds compelling merit, particularly in the current market environment. At Entrust, our Investment Advisory team continues to closely monitor and […]

by Dr. Karthik S
read more
Estate Planning

Understanding Prenuptial Agreements in India: Legal Insights and Alternatives

Marriage is often considered a sacred institution in India, deeply rooted in tradition and societal values. Unlike in many other countries where prenuptial agreements (prenups) are legally binding contracts that outline financial and asset-related arrangements in the event of a separation, the Indian legal system does not formally recognize such agreements

by Manthan Bavishi
read more
CFO Services

Case Study 3 – Tax Advisory for Single Family Offices

Background  Some of our clientele include prominent Single-Family Offices (SFOs) managing diverse assets across different geographical locations. These clients usually have distinct entities operating under their umbrella and require a comprehensive tax advisory service to optimize their tax liabilities and achieve significant savings while ensuring legal compliance.  The objective for such clients is mostly to […]

by Sreedhar K V
read more

signup for updates

logo

Contact Us