Legal
INTERVIEW: Private Client Law Firm Eyes Under-Served French Market As Tax Complexities Grow

This publication interviews a new player in France's private client law arena - a firm with a specialist focus on tax.
Arkwood, located in Paris, is a recently-launched boutique
tax law firm working with private clients. Continental Europe is
seeing a number of developments driving demand for such
businesses, such as ever-growing attempts by governments to
control cross-border assets, or the arrival a few months ago
of the European Union’s succession regime for wills. This
publication spoke to Stéphanie Auferil, partner. The founders of
this firm specialise in tax law.
Who are the founders?
The founders of Arkwood are all well-known practitioners coming
from Baker & McKenzie (Stephanie Auferil, Marine Dupas, Michael
Khayat and Julien Riahi). They have been working together for
many years.
Why did you set up the firm and what were the main
reasons for doing so? When did you take the decision to set up
the business?
The decision to set up the firm was a response to the wealth
management market demands that are more and more attracted
by independent boutique law firms offering flexibility, proximity
together with a high quality tailor-made service. The decision
was [enacted] in the course of 2015.
What markets do you serve? Is it just France, or further
afield?
We are French tax law experts working on complex and cross-border
structuring. As such we accompany French clients with foreign
connections (assets, family, transfer of residence), as well as
non-French clients investing in France or having other French
connections (real estate structuring, trusts with French resident
beneficiaries…). We have become one of the few French experts on
trusts and foreign life insurance.
Does your firm have any specific targets in terms of the
type of clients you want to serve, or numbers?
We aim at focusing on families (entrepreneurs, HNWI and UHNWI)
and financial institutions (private banks, life insurance
companies, trust companies). We want to build a long-term
relationship with our clients to become their trusted advisor,
rather than multiplying cookie-cutter/one shot tasks. We actually
care about our clients and feel rewarded when they introduce us
to their acquaintances.
Please set out some of the main requirements that clients
have at the moment. Can you give some concrete examples of the
kind of work that you do for clients?
Transparency and compliance is one of the main requirements of
our clients (for both financial institutions and families) within
the framework of the current changes of legislations and
complexity triggered by cross-border situations. We help many
clients with complex trust issues involving several
jurisdictions: how to organise or reorganise trusts having
beneficiaries in France, Spain and Belgium. We assist clients
with voluntary procedures in order to regularise the situation
for the past if need be, we assess whether the main objectives of
the trust planning is tax efficient and we advise on the best
steps to be taken for the future (isolation of the assets per
jurisdiction, use of life insurance strategies for the French
clients, estate planning…).
How well served are such private clients in France? Is
there a lack of talented advice for people? Is it
improving/worsening?
Until recently, the French private clients were poorly served,
especially on cross-border issues. Many families were advised by
their local family lawyers/notaries, often not qualified in
international issues. Recently through the voluntary disclosure
programmes many firms developed a wealth management practice,
though very few have a true international background and
knowledge of foreign tools (trusts, foundations, foreign life
insurance, etc.).
Where, in terms of other countries, would you consider
working in terms of clients? How much of what you do is
cross-border?
Some 80 per cent of our work is cross-border. The other
countries/regions that we have to deal with are European
countries (mainly the UK, Belgium, Luxembourg, Switzerland and
Spain), the US, Middle East and Asia.
What are the main tax issues that you are likely to
handle for clients? Can you give some examples of what you think
are the most challenging?
Post-voluntary disclosure structuring (tax efficient strategies
for holding of wealth and estate planning), relocation outside
France, real estate structuring, and tax litigation. Estate
planning, transmission of businesses and family companies remain,
of course, a major issue on both tax and civil law aspects for
our clients. Many of our clients are overwhelmed by the
increasing complex and changing regulations, especially when they
need to deal with multiple jurisdictions. We guide them in a
holistic approach and clarify their options in a way that
efficiently combines their expectations of tax efficiency
together with the risks deriving from the instability of
legislations. Also one of the most challenging for the
future will be the tight border between tax planning and tax
fraud, and the aggressive approach of the French administration
on these, leading to hard tax disputes.
Have you seen much impact on your business from the
recent EU Succession Directive?
Discussions around the EU Succession Directive and its entry into
force increased the degree of knowledge of our clients, although
we have been advising our clients for a long time to review their
estate planning and matrimonial regime when leaving or coming to
France. Many unresolved questions remain, especially with
third-party countries (those outside the EU or which do not apply
the Directive), but the EU Succession Directive is definitely a
powerful tool for estate planning of mobile family clients.
Are there other points you would like to
make?
Families are demanding of technical excellence and high quality
services, while deeply attached to tailor-made approach and long
term commitment from their advisors. Boutique law firms providing
high quality standards answer this demand.