Fri, Nov 28, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

German Finance Ministry is tougher on alternative funds than the EU

Tuesday, January 08, 2013

amb
Robert Welzel
Benedicte Gravrand, Opalesque Geneva:

Germanys Ministry of Finance (BMF) presented a draft revision of German fund tax law on 4th December 2012, which is connected to the draft bill for the implementation of the EUs AIFMD (Alternative Investment Fund Manager Directive) it issued in July.

Robert Welzel and Steffen Gnutzmann, both partners with WTS, a tax and legal consulting firm based in Frankfurt, talked to Opalesque about a possible snag they found in the fund tax law proposal.

They claim that based on the two draft bills, the competitive landscape for alternative funds may be significantly transformed. The German AIFMD implementation not only brings about a manager regulation, they say, it also contains significant product regulation, first via regulatory law and second via tax law.

"Basically the regulation is that we have good funds and bad funds, especially from a tax law perspective," Steffen Gnutzmann told Opalesque. "The good funds will generate a better after-tax return for the investors than the bad funds."

German investors usually invest in tax-optimised products, Robert Welzel explained, and funds that authorities do not welcome will be put in a tax regime that investors may want to avoid. So the German implementation of the AIFMD and the related tax law may end up being unfair tax-wise on certain funds.

The future fund tax law would provide for three p......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Unlucky Paulson & Co. rebrands $1.6bn Recovery Fund after 13% drop[more]

    From Businessweek.com: A maturing U.S. economic recovery is prompting Paulson & Co. to change course. The $19 billion hedge fund firm, led by billionaire John Paulson, told investors on a conference call this month that the Paulson Recovery Fund will be renamed Paulson Special Situations Fund on Jan

  2. Opalesque Roundtable: Islamic Finance races ahead with Sukuk, the first managed account platform, and foreign demand[more]

    Komfie Manalo, Opalesque Asia: A number of developments took place within Islamic finance in the past years, including the launch of a Islamic managed account platform and the further growth of the sukuk space that saw this instrument evolve from being a type of an ABS security that was rarely

  3. Fund Profile - A complex hedge fund strategy works for United Technologies[more]

    From Institutionalinvestor.com: Reports that portable alpha is dead have been greatly exaggerated, as Mark Twain might have phrased it. Another Connecticut Yankee, giant United Technologies Corp., is gearing up to grow its successful, nearly decade-long portable-alpha program. The UTC strategy took

  4. Opalesque Exclusive: The unintended consequences of Basel III[more]

    Benedicte Gravrand, Opalesque Geneva: Bijesh Amin, co-founder and managing director of Indus Valley Partners (IVP), a technology solutions and services firm focused on the alternative asset management industry, has recently observed

  5. Legal - Six years after AIG takeover, lawsuit reveals another potential buyer[more]

    From Institutional investor.com: When former Treasury secretary Henry (Hank) Paulson Jr. testified in a suit last month about the U.S. government takeover of American International Group, his words were — mostly — numbingly familiar. Explaining the “punitive” terms set for the September 2008 bailout