Tax Transparency is a fact of life in financial markets as the Common Reporting Standard (CRS) and global tax reporting becomes reality. Not only do banks and fund managers hae anti-money laundering (AML) and know -you-customer (KYC) responsibilities, they must report to the tax authorities all returns flowing from their funds. Total transparency of investor tax residency and identity is now the norm.
Thanks to advances in technology, investors now have global access to a multitude of specialist platforms, and investment products from a wide variety of asset classes and countries.
Many of those onshore vehicles will themselves be tax exempt, obtain double tax treaty access and suffer no withholding tax on distributions or redemptions.
As product solutions proliferate, asset managers will get used to dealing with a wider range of different fund regimes and legal structures.
Investors will expect robust and efficient tax infrastructure and