Ernst & Young warns hedge fund managers they will come
under greater scrutiny by the city's Inland Revenue from this year. According to asianinvestor Hong Kong’s Inland Revenue Department is
making a more concerted effort this year to audit fund managers working in the
city’s alternative investment firms, and it is currently peak season for audit
requests, according to Ernst & Young.
Hedge fund execs are likely to receive the most scrutiny,
says the consulting firm, since these firms tend to have structures domiciled
offshore in jurisdictions like the Cayman Islands.
The IRD's move coincides with a crackdown on tax avoidance
on wealthy individuals in the West. One such case relates to the UK’s HM
Revenue and Customs, which claimed victory in June regarding a tax-avoidance
scheme whereby directors of Sloane Robinson Investment Services channelled
bonuses to a Guernsey-based trust to avoid a £13 million tax bill….
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