Precy Dumlao, Opalesque Asia:
The majority of hedge fund managers in Asia are not clearly digesting the full impact of the U.S. Foreign Account Tax Compliance Act (Fatca) and are ignoring its consequences, particularly to their operations, according to a report by Asian Investor.
Kevin Chan, chief operating officer at Baring Asset Management (Asia) commented, "The impact on this industry in Asia will be hard. While the Hong Kong Investment Funds Association organised a seminar on Fatca at the end of March, the industry has not been widely discussing this. We manage offshore funds and donít feel like we can solve these issues by ourselves. No one yet knows the extent to which this will impact the industry in Hong Kong, Singapore or other markets."
The Fatca is scheduled for implementation in 2014 that was passed by the U.S. government as part of its efforts to improve tax compliance involving foreign financial assets and offshore accounts. Under the new regulation, U.S. taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS. This reporting will be made on Form 8938, which taxpayers attach to their federal income tax return, starting this tax filing season.
Fatca also requires foreign f......................
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