Tax threat for industry

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By Dylan Emery The Internal Revenue Service (IRS) in the US has drawn the offshore fund management ...

By Dylan Emery The Internal Revenue Service (IRS) in the US has drawn the offshore fund management industry into its fight against tax evasion by threatening uncooperative intermediaries with a tax penalty of 31% on dividends and interest payments. From 1 January 2001, the IRS will demand the names of beneficial owners of income and interest from assets. Anonymity can only be maintained if the liability is calculated by a qualified intermediary (QI). Every one in the chain between the withholding agent (who processes the US transaction) and the beneficial owner, is considered an interme...

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