International Tax for Asset Managers
Delivering results that make a difference globally
U.S. and foreign governments are proposing tax law changes to stimulate their economies and fight budget deficits. Many of these proposed changes involve changes to the tax treatment of cross-border income, and they may impact the way international asset managers engage in tax planning. Regulatory reporting may consume even more time than it does now, and the failure to file or adequately report transactions to multiple tax authorities may subject funds to significant penalties.
In addition, the Dodd-Frank Wall Street Reform and Consumer Protection Act and similar laws in other countries are fundamentally changing the regulatory framework for financial services firms in general, including asset management firms. As a result, fund managers are modifying the structure and location of investment activities to address operational and transaction tax issues.
Facing these issues, along with the continued challenges of the global economy, fund managers may need to modify their approach to international tax planning and compliance to protect the after-tax return derived from their fund structure.
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