31.05.2012 - Removal of tax quirk for SWFs could benefit US buyout houses
Proposals to allow sovereign wealth funds to invest in US private equity funds without losing their tax-exempt status could boost investment in the asset class, says US law firm Pepper Hamilton in a recent note. Sovereign wealth funds are often formed as entities separate to a government, and if a SWF conducts any so-called ‘commercial activity’ anywhere in the world, they currently stand to lose their special sovereign-related tax exemption status (on certain types of income) in the US. Commercial activities are defined as “business conducted for income or gain”...............................................Full Article: Source
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