VNUNet.com – The rapid development of new investment strategies devised by hedge funds has attracted the interest of tax authorities.
The focus on taxation is because of the complex arrangements employed by the industry.
Robert Mellor, a partner at PricewaterhouseCoopers, said that because of this complexity it could become risky for hedge funds to establish a taxable presence in European jurisdictions where tax policies remained uncertain.
‘With the emergence of some of the new fund strategies, the risk of creating a taxable presence in an onshore EU jurisdiction is significantly increased,’ Mellor said.
Debbie Payne, hedge fund senior manager at PwC, said the lack of consistency in taxation policy towards hedge funds in Europe was limiting the opportunities for the funds to distribute their products throughout the continent and fragmenting the market.
