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Luca Cristiano Maria Melchionna

Luca Melchionna’s Answers

1,007 total


  • May a C Corporation, owned by a foreign, non-US company, place its shares into a US Trust? If so are there any tax consequences?

    Situation involves: 1) a C Corporation, owned by a foreign, non-US company 2) the shares of said C Corporation 3) a US Trust

    Luca’s Answer

    Yes, it is possible. Tax consequences are linked to the trust taxation depending on its location (state) and nature (revocable or not). Type of shares is also another element to consider in this planning. In any case, please expect to deal with international tax consequences. It will be initially expensive but if well planned you will save money later. You need to engage an international cross border tax attorney with experience in trust, estate and tax planning. Good luck.

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  • Can this product be patented in the United States by the foreign inventor and his US partner?

    I have a beauty product that I am selling for less than a month in the United States for the very first time. The product was invented in Europe in 2000, but the original inventor never filed a patent. The product has been sold only Europe and Sou...

    Luca’s Answer

    If the product has been invented in Europe, I would try to find out whether there is a patent or a trademark registered in any European country. It may have not been registered in the US but still you may have serious infringement risks. Regards

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  • How to get the money back? How we can find a lawyer and court that deal with international claims of businessmen?

    Hello, My friend is an iraqi businessman. He received an official order to produce armoured clothes for usa army troops in Iraq. when the products were ready and it came time to pay the bill, all the products were confiscated like there were ...

    Luca’s Answer

    The best starting point is to see whether your friend signed a contract. I would suggest to check also where is located the production facility, where the order arrived, and who are the people involved. Then, I would hire a good business attorney. Good luck

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  • Leaving USA, moving back to France, still have to pay taxes to IRS for 5 more years on the money I will make in France?

    I'm a French citizen, married to a US citizen. We're getting divorced, I want to give up on my US residence and move back to France. Is it true that even after renouncing on my US residence and moving back to France, I'll still have to pay IRS ta...

    Luca’s Answer

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    I think you are referring to Section 877A of the Tax Code (that I suggest to read carefully). If you are a green card holder you are considered a long-term residence for purpose of expatriation tax. (Exceptions apply if you spent any of these 8 years elsewhere). Then you are subject to an immediate expatriate tax that deems you to have sold all worldwide property at its fair market value 1 day before your (similar to an income tax applying to any unrealized gains of your estate). That gain will be subject to the capital gain tax rates. The amount of the deemed sale is reduced (or excluded) by $690,000 (for 2015). Please consult with a tax attorney. Good luck.

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  • What are IRS regulations for cross-border money transfer?

    There are several companies (like Xoom) which allow to conveniently transfer money from US bank accounts to foreign bank accounts. Such transfers are done either using Wire transfer or ACH transfer. If I transfer money from my US bank account to m...

    Luca’s Answer

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    You do not have to fill out forms. However, before the end of tax season, you need to report and explain your transfer. First of all ask yourself if the money you are transferring is income (if so you need to pay taxes in it). Once you have passed this first step, then you have to report this money on your 1040 (before April 15) and file the proper FBAR (before June 30). Good luck

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  • Can I be sued in Hong Kong if I am a resident of an EU country ?

    In case of disagreement over a contract stating that all disputes will be handled by the Hong Kong courts, if I am a resident of an EU country, can I be sued in this disagreement, if I simply don't comply to come to Hong Kong ? How hard would it b...

    Luca’s Answer

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    Yes you can. It does not matter where you reside if you signed a contract stating that Hong Kong is the sole jurisdiction in case of contractual disputes. If you can prove that you did not agree on that specific clause or that there are other elements of the contract that the other party did not comply with, better to show up in court and answer any complaint. I am not qualified in HK but I am a comparative attorney by training. The majority of legal systems have form of default judgment. Therefore, in the event you intend not to appear in any HK court, you may risk to receive a HK court final award that may be later recognized and enforced in your home country as per the Hague Convention of 1971. I think you should engage a HK based attorney with experience in international contract and business law. Good luck

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  • Is a non interest bearing US Dollar bank account held in the United Kingdom by a dual UK/US citizen subject to taxes in the US?

    I received a request by the UK bank to fill out a W-9. Money has been sitting in that account for over 3 years. It is a personal, joint account (other account holder is a UK citizen). Origination of money is through off shore funds (wire transf...

    Luca’s Answer

    If there is no interest, then no taxation. However, if the amount is over $10k (combined with other offshore accounts) you have an obligation report with the US tax return with the FBAR. YOu filled out a W9 because of the FATCA. The US tax administration and the UK bank will exchange info about your bank account in the UK. Best

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  • I received a letter from the IRS requesting meeting regarding 2011 FinCEN reporting compliance. Do I need an attorney.

    My 2011 tax return was audited by the IRS including my 2011 foreign bank accounts. The examination concluded that I do not have to pay taxes for my foreign account. After the examination was completed the auditor sent me a letter requesting meetin...

    Luca’s Answer

    Unreported foreign account or foreign income is a serious issue with civil and criminal consequences. Because you have been audited you may not have chances to get into an OVD program. This may cause the application of harsh penalties. I would recommend to hire a criminal tax attorney with OVDP experience and dealing with foreign assets. You need to hire and work with attorney because you need the protection of the attorney-client rule and empower him with a POA to discuss your taxes ad financial situation with the IRS. And do not hire an accountant independently. Let the attorney hire a CPA. Be prepared because it will be very expensive.

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  • Which governing law is best to use for an NDA between and Swedish and a Hong Kong company?

    This is an NDA between two ecommerce companies and not between an employee and employer.

    Luca’s Answer

    There is no such things as "best law" (between or among countries) or "best law" for a specific contract or situation. Choice of Law is a crucial topic for any agreement and must be analyzed very carefully. It is based, of course, on the negotiating strategy of both parties and it involves several factual determinations among which: which is (or which are) the language(s) of the contract? Where are the parties located geographically? Where are the legal seats of the companies? Where the services are provided, or goods manufactures, or shipped? Where the payment will be made? What is the mechanic of the payment? Which currency used? Which is the party with predominant economic power located? Is this negotiation an opportunity to develop a long lasting commercial relationship? Has the law selected anything to do with any factual consideration of this agreement described above?
    In addition, there are some fundamental legal considerations, among which: What is the remedial system of the legal system selected? How the recovery system of that applicable law is structured? What is the time frame for judicial recovery? Is the law selected by the parties business friendly and accessible? Have both parties access to legal counsel? What are the expenses pre or post breach? What are the tax consequences for both parties? Any treaty involved? In which way the applicable law of a country signatory of certain international treaties affect the contract? Any international tax issues?
    As you may realize, facts and laws are complex matters to resolve. Therefore, I think it is clever to hire an attorney who can guide your business decisions. Good luck.

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  • Can an American work for a German based company if the German based company does not have an office in America

    Need to know if a company from Germany can directly hire an American citizen.

    Luca’s Answer

    Yes, in general, a German company can hire an American individual. There may be some jobs restricted only to Germans (like e.g. working for the government, holding public security positions, etc.). I assume also that the contract will be regulated under German Law as well as all the related benefits. Best

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