Treasury Dept. to investors: No need to report offshore hedge fund stash
By Lawrence Delevingne
Wed Apr 13, 2011
Wealthy investors, including tax dodgers, have been given a temporary reprieve from reporting their foreign holdings, but new rules may be coming.
The government wants to know where potential tax dodgers have
hidden their cash, but not enough to make them disclose their
offshore hedge fund investments, according to a recent ruling
that received little attention outside of law firms.
"Now more than ever, the government needs revenue
and it wants to know as much as possible about the offshore
accounts of U.S. citizens," says Tom Bogle, a partner at law
firm Dechert based in Washington, DC. "Investors
don’t have to report interests in offshore hedge
funds now, but they are likely to in the near future."
The Financial Crimes Enforcement Network, the U.S.
department of the Treasury’s tax evasion team,
issued a rule on February 24 clarifying that investments in
foreign-based funds—including the offshore feeder
vehicles of U.S.-based managers used by tax-exempt
ISSN: 2151-1845 / CDC10004H
Take a trial today and access
- Performance news, fund launches, regulation changes and people moves
- Profiles of fund managers, investors and distributors
- Live league tables
- Investor mandates
Start your subscription today!
- Access our news and performance data online from anywhere
- Receive weekly emails with the latest news and performance data
- Free copies of the bi-annual Global Review inc. the Billion Dollar Club
- 24/7 online support
- Dedicated account manager