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Article: Offshore funds could enjoy flexible tax relief; Tax changes could lead to more flexibility for offshore funds investing in US.(Brief Article)
- Article from:
- Investment Adviser
- Article date:
- October 7, 2002
CopyrightCOPYRIGHT 2002 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By James Mawson
Offshore funds investing in US securities could have more flexibility in deciding how to claim tax relief.
The US tax office, the Internal Revenue Service, put in place a new tax system at the start of 2001, which could impact on offshore funds. This system views funds as either:
the "beneficial owners" for example, an onshore unit trust of the income, in which case the tax is paid by the fund; or
as a "look through" or "transparent" fund, such as an offshore fund, where the income is passed to the ultimate beneficial owner after tax.