Thu, Sep 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

FATCA regs finalized, but hedge funds still in limbo

Tuesday, January 29, 2013

Bailey McCann, Opalesque New York:

On January 17, the IRS issued finalized Foreign Account Tax Compliance Act (FATCA) rules. These rules will impact financial firms and investors of all stripes foreign and domestic. In essence, the rules are designed to go after US tax cheats regardless of where they reside. In establishing the scheme, the IRS has signed most other countries on to an information sharing and tax reporting agreement in order to ensure they are getting all taxes legally owed in the US. However, for hedge funds and private equity firms, which have been keenly awaiting the results of the deliberations around finalizing the rules key provisions are still up in the air. The US is still negotiating with key countries in the Caribbean on a model for tax reporting.

For foreign governments who are working with the IRS on FATCA, there are two models of doing this. Under option 1, individuals or entities report their US taxable investments, and the foreign government reports those to the US on an automated basis. With option 2, the foreign investor or firm sets up a reporting arrangement directly with the IRS and the foreign government will do some measure of IRS reporting on its own. So far, Switzerland is the only country to sign on to the second option.

Right now, the IRS is negotiating with most other countries about which model they intend to use. The result of these negotiations, more than the finalized rules, will have a significant impact on hedge......................

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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner