The Inland Revenue is targeting the personal income of hedge fund managers for possible tax eva...
The Inland Revenue is targeting the personal income of hedge fund managers for possible tax evasion.
Investment Week's sister title Hedge Funds Review has learned several managers are already under investigation by the Revenue's special Compliance Offices in London and Manchester. The investigation has been undertaken because of a perception that there is a vast amount of wealth within the hedge fund industry and because of its complexity, according to Stephen Camm, director of the tax investigation department at PricewaterhouseCoopers.
The Revenue is not interested in hedge fund investors but the managers themselves and the corporate structure of the funds, he added.
It has wide powers which allow it to get information from both the people under investigation and third parties.
Some of the main areas it is covering includes transfer pricing, residence of companies not incorporated in the UK and how the principals of the business extract money from the firm. 'Managers should be worried because there clearly is a project going on and there is nothing to say that any one of these managers will not be next on the Revenue's list,' said Camm. 'The fact that a firm is
An ambitious objective
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'Illusion of control'
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Total investment reaches £9m