The Hedge Fund Law Report

The definitive source of actionable intelligence on hedge fund law and regulation

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By Topic: Australia

  • From Vol. 9 No.13 (Mar. 31, 2016)

    How Hedge Funds Can Mitigate FIN 48 Exposure in Australia and Mexico (Part Three of Three)

    Exposure to withholding taxes and exposure under FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), are growing concerns for hedge funds investing in foreign securities. Australia and Mexico, along with other countries, have issued pronouncements on taxation of capital gains for non-residents. However, certain methods can be useful for funds to avoid or reduce exposure to withholding taxes. In this guest three-part series, Harold Adrion of EisnerAmper discusses hedge fund exposure to foreign withholding taxes and FIN 48. This third article explores developments in Australia and Mexico, as well as how hedge funds can minimize exposure to withholding taxes. The first article explained Fin 48 and considered E.U. developments regarding free movement of capital and its impact on funds. The second article addressed the limited exemption to capital gains taxation of non-residents announced by China and other issues for non-resident investors. For more on Australian tax issues, see “What Hedge Funds Need to Know About Tax Relief Under the New Australian Investment Manager Regime” (Jun. 11, 2015). For further insight from EisnerAmper professionals, see our two-part series on “How Can Hedge Fund Managers Structure, Negotiate and Implement Expense Caps to Amplify Capital Raising Efforts?”: Part One (Jun. 20, 2013); and Part Two (Jun. 27, 2013).

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  • From Vol. 8 No.23 (Jun. 11, 2015)

    What Hedge Funds Need to Know About Tax Relief Under the New Australian Investment Manager Regime

    A new Australian investment manager regime (IMR) is set to take effect on July 1, with possible retroactive effect to 2011.  Following the U.K. Investment Manager Exemption model, the IMR is intended to provide eligible foreign investors with relief from Australian tax with respect to most investments in Australia.  In a guest article, Nikki Bentley and Seema Mishra, partner and special counsel, respectively, at Henry Davis York, discuss the history and current status of the IMR provisions; elements and scope of Australian tax exemptions under the IMR; certain considerations when establishing a hedge fund in Australia under the IMR; the potential impact of the IMR on the hedge fund industry in Australia; and a comparison of the Australian IMR to other similar regimes.  For more on the Australian IMR, see “Key Hedge Fund Tax Developments in the U.K., the European Union, Ireland, Germany, Spain, Australia, India and Puerto Rico,” The Hedge Fund Law Report, Vol. 6, No. 26 (Jun. 27, 2013).

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