2020: the year of BEPS

2020 looks like it will be the year of BEPS – definitely for Luxembourg but possibly in offshore jurisdictions too. BEPS affects the boards of alternative funds in several ways (but not long only ones).

Contrary to popular belief it will not be the offshore fund domiciles that will be first into the BEPS firing line. BEPS targets jurisdictions that have relied upon complex bilateral tax treaties for their tax advantaged status more than low tax domiciles like Cayman, Guernsey and Jersey. Luxembourg is in this category.

It is also in the BEPS firing line because of the type of alternative business that is done from there. As a rough rule of thumb, the more illiquid the alternative fund the more likely it will be in the cross-hairs of BEPS.
 
To read more on this story see the November issue of The NED.

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