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Selling Your Business?Eliminate Capital Gains Tax

  • We specialize in helping people eliminate capital gains tax when selling their business for more than $10mm USD
  • We've helped our clients save 100s of millions of dollars in taxes
  • Contact us today for your free consultation

Your Exit Strategy Doesn’t Have to Include a Huge Tax Bill

With proper planning and precise corporate structuring, here's how we help clients keep nearly all of their payoff.
01

Strategy

We begin with a thorough evaluation of your company’s financials and corporate structure. The earlier we are, the more opportunities we have to eliminate your tax burden upon exit.

02

Implementation

Through the use of corporate restructuring, strategic business valuations and government-issued tax credits, we'll lay the groundwork for an exit free from capital gains tax.

03

Exit

Dominion's international team of legal and financial advisors will usher you through a successful exit and ensure regulatory and tax compliance every step of the way.

04

Continuity

As you transition from business owner to investor, your assets will be invested in specialized insurance vehicles to ensure tax-free cash flows into perpetuity.

Get in touch to consult with a high net worth tax advisor.

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Case Study 1

SellingLand in the US

$240 millionassets value

Challenge
A US client needed to mitigate taxes incurred from selling land valued at $240 million to an energy company.
Solution

We established an offshore asset protection trust in the Cook Islands, transferring ownership of the land to the trust, thus minimizing exposure to US taxes. Cook Islands' legislation offers strong asset protection and exempts several types of taxes, effectively shielding the assets. The proceeds are further managed through a Private Placement Life Insurance (PPLI) in Bermuda, which the client loaned against to facilitate tax-free access to funds.

Client saved$48,290,000

Key Insight
This strategy leverages the asset protection and tax neutral laws of the Cook Islands while taking full advantage of PPLI tax benefits on capital gains and cash flow through loans.
Case Study 2

SellingCompany in the UK

£120 millionassets value

Challenge
A UK entrepreneur approached us looking to sell his company valued at £120 million. Staring down a capital gains tax bill in excess of £20 million, he hired Dominion to devise a tax mitigation strategy.
Solution

We began by setting up an offshore asset protection trust in Nevis and a Hong Kong LLC to hold and protect the equity, then wrapped the trust in a tax-free insurance structure. Guiding the client throughout the company sale, all the income flowed into the insurance wrapper (and not the client), skirting all capital gains tax in the process. The client took a loan using these funds as collateral, enabling tax-free cash flow that he (and eventually, his heirs) could enjoy.

Client saved£23,998,800

Key Insight
Utilizing Nevis's laws for asset protection and confidentiality, combined with Hong Kong's favorable regulatory and tax environment, this structure allows the client to sell the company without incurring capital gains tax, fully compliant with UK and international tax codes. As an added bonus, the assets remain protected and confidential under the Nevis trust.
Case Study 3

SellingCompany in the US

$100 millionassets value

Challenge
A US client planned to sell their company, which they believed to be worth around $100 million, though they had not yet received a formal valuation. This absence opened a window of opportunity to effectively eliminate their tax obligation upon completion of their sale.
Solution

The approach began with establishing an offshore asset protection trust in the Cook Islands, paired with a PPLI policy. Thus far, you'll recognize this setup from the one used in Case Study #1, but with one significant difference. By highlighting potential liabilities and operational risks, adopting conservative financial projections, and emphasizing unfavorable industry trends and economic conditions, the formal estate valuation we secured was worth only $20 million, significantly below the internally estimated value.

After several years of continued operations and courting potential buyers, the company eventually sold for $96 million, resulting in a $76 million tax-free capital gain on the value of the PPLI.

Client saved$19,266,000

Key Insight
In addition to the tax-free windfall, tax liabilities on the formally recognized $20 million value were completely offset by investing in environmental tax credits. As a result, the client avoided taxes entirely on the transaction and had immediate access to $88 million via a loan taken against the insurance policy. What's more, they anticipate recovering the value of the tax credits in full within four years.
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Get in touch to consult with a high net worth tax advisor.

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