Audit of family foundations

Comprehensive verification and operational security of a family foundation

A family foundation audit is more than just a document review. It's a comprehensive analysis – from accounting and CIT/VAT settlements to checking compliance with the foundation's charter and the family foundation act.

Our team of experts combines knowledge from accounting, law, and tax consulting, allowing us to identify not only errors but also real opportunities to improve the financial and tax efficiency of foundations.

Basic support scope

Conducting periodic audits of the foundation (every four years or more often, according to the Family Foundation Act).

Conducting ad hoc tax and financial audits of family foundations.

Who are we directing the audit of the family foundation's compliance and proper functioning to?

We direct periodic family foundation audits to entrepreneurs and organizations who want to consciously and safely manage their assets and reliably and punctually fulfill statutory foundation audits.

A family foundation audit at ATF Family Office is not just a legal requirement, but above all, an extremely important process.

It allows you to verify the reliability of the foundation's operation, improve its functioning, and increase the trust of donors and beneficiaries. We base our actions on accuracy, transparency, and an understanding of the specifics of each foundation.

Step 1

Preliminary analysis and audit preparation

We are learning about the structure of a family foundation, the scope of its activities, and its sources of funding.
Together with the Client, we establish the goals and expectations for the audit – whether it is to be statutory, internal, or advisory in nature.
We are developing a work schedule and a list of required documents and financial data.

Step 2

Documentation and process review

We are analyzing accounting books, financial statements, contracts, board resolutions, and accounting policies.
We are verifying the foundation's compliance with the Family Foundation Act, tax regulations, and internal rules.
We identify areas of risk, irregularities, and potential opportunities to improve management efficiency.

Step 3

Report and Recommendations for the Family Foundation

We are preparing a detailed audit report, including findings, conclusions, and practical remedial recommendations.
We discuss the results with the founder, the board of directors, or the supervisory board, pointing out specific improvement actions.
We support you in implementing recommendations and help adapt financial, tax, and organizational processes to compliance and transparency standards.

Ensure your foundation operates legally and risk-free.

FAQ

We know that establishing and running a family foundation is a big responsibility.

What is a family foundation and when is it worth establishing one?

This tool is for asset protection, succession planning, and orderly management of family finances. It is useful when you want to separate private assets from business assets, maintain long-term control of the company, and ensure clear rules for beneficiary benefits.

What tax benefits can a family foundation offer?

The act provides for tax preferences at the foundation level and special rules for taxing benefits for beneficiaries. In practice, a well-designed structure allows for reducing tax burdens, avoiding double taxation, and safely planning payouts. The key is to tailor solutions to the asset profile and family plans.

How are benefits paid to beneficiaries and the founder taxed?

Taxation depends, among other things, on the degree of kinship, the source and type of benefit, and the foundation's internal documents. The standard practice is to prepare a benefits policy and a payment schedule to take advantage of available preferences and not lose exemption rights.

Does a family foundation pay corporate income tax (CIT) and value-added tax (VAT)?

The foundation is a taxpayer and subject to general rules, but some of its income may benefit from preferences. The scope of CIT/VAT obligations results from the type of activity (e.g., rental, dividends, asset disposal, services). Therefore, before each transaction, we assess the tax consequences and prepare a secure settlement model.

A family foundation can conduct the following activities:

The catalog is limited and focuses on asset management, investing, and activities supporting the statutory objectives. „Operational” activities should remain within the portfolio companies. The foundation acts as the owner and supervisor of these companies.

What is the step-by-step process for establishing a family foundation?

First, we design the charter, the list of beneficiaries, and the benefit rules. Then, we complete the documents, contribute assets, and submit the application to the registry. After registration, we implement accounting policies, compliance procedures, and establish the reporting calendar. We manage the entire process „end-to-end,” including remotely.

What is the cost of establishing and operating a family foundation?

The costs include: court and notary fees, legal and tax advisory services for establishment, ongoing accounting and reporting services, tax advisory services, and (if needed) a family foundation audit. We always prepare a transparent, individualized quote.

What bodies does the foundation have and what does its corporate governance look like?

As a rule, the management board operates, and the articles of association may provide for additional supervisory bodies. Key elements include: clear competencies, resolution-making procedures, a stakeholder register, and well-described compliance processes. This ensures that decisions are predictable and legally sound.

Can a company or real estate be transferred to a foundation, and how should it be accounted for?

Various assets (shares, securities, real estate, rights) can be contributed to a foundation. Each transfer should ideally be preceded by a CIT/PIT/VAT analysis and a review of agreements and collateral. We prepare an asset contribution plan that is tax-efficient and formally secure.

How to prepare a foundation for an inspection or audit?

We begin with a review of the books, verification of documents (articles of incorporation, resolutions, contracts), tax tests (corporate income tax, VAT, benefits), and assessment of procedures. We conclude with a report containing recommendations and the implementation of corrections so that the foundation is ready for an audit and maintains the continuity of its tax preferences.