Thursday, February 7, 2013

Taxman steps up probes on fund managers



Ernst & Young warns hedge fund managers they will come under greater scrutiny by the city's Inland Revenue from this year.  Hong Kong’s Inland Revenue Department is making a more concerted effort this year to audit fund managers working in the city’s alternative investment firms, and it is currently peak season for audit requests, according to Ernst & Young.

Hedge fund execs are likely to receive the most scrutiny, says the consulting firm, since these firms tend to have structures domiciled offshore in jurisdictions like the Cayman Islands.

The IRD's move coincides with a crackdown on tax avoidance on wealthy individuals in the West. One such case relates to the UK’s HM Revenue and Customs, which claimed victory in June regarding a tax-avoidance scheme whereby directors of Sloane Robinson Investment Services channelled bonuses to a Guernsey-based trust to avoid a £13 million tax bill….


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