Deloitte Tohmatsu to manage SPC funds expanding integrated support services

This is an English translation of the news release issued by Deloitte Tohmatsu Group on October 1, 2024. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

1 October, 2024

Deloitte Tohmatsu Tax Co. ("DTTAX", Chiyoda, Tokyo), a member of the Deloitte Tohmatsu Group, acquired the business of Akasaka International TAX &Co. (Minato-ku, Tokyo), a tax accounting firm specializing in fund administration, on October 1, 2024, to strengthen its structure to provide comprehensive support for fund administration, centering on special purpose company (SPC) business.

SPCs have the advantage of limiting risk by isolating assets from other investments and providing flexible funding for limited purposes. They may also be eligible for certain tax benefits and may be required to meet legal and regulatory requirements for some investments and transactions. As such, it is at the core of the Fund's efforts to optimize asset management, overall management, and performance.

On the other hand, depending on the type and content of the investment target, such as real estate, aircraft, ships, containers, receivables, and mega solar power, various laws and regulations apply, and the operational burden is heavy, including notification, registration, and reporting, as well as dealing with increasingly complex compliance practices. In addition to Japanese language support, this is the biggest hurdle for foreign funds investing in Japan.

DTTAX will provide comprehensive administrative services to the SPC from its establishment through liquidation and dissolution.

1. Establishment
   Support for registration procedures, tax filing, opening of bank accounts, acting for directors, provision of registered addresses
2. Management
   Negotiations with audit firms regarding legal affairs such as the sealing of contracts and the management of general meetings of shareholders, cash management such as bankbook management and cash flow monitoring, and audit response
3. Financial Accounting and Tax Compliance
   Bookkeeping, preparation of financial statement, preparation and filling of corporate, local and consumption taxes, preparation of reports and financial announcements
4. liquidation and dissolution
   Preparation and filing of tax reports, acting for registration procedures, closing of bank accounts, etc.

For 20 years, Akasaka International TAX &Co. has been providing comprehensive management services and tax preparation services to real estate funds and asset management companies, including REITs, hotels, and warehouses. In the case of an SPC established in Japan by a foreign fund, they have prepared reports, consolidated packages and public announcements in accordance with US-GAAP and IFRS.

On the other hand, DTTAX has the advantage of being able to grasp the latest situation, knowledge, and legal developments in Japan and overseas from the approximately 20,000 employees of the entire Deloitte Tohmatsu Group in Japan and supports operations including accounting process design and management. Also, there are plenty of members who can speak English.

By taking over the capabilities of Akasaka International TAX &Co., we will support high-quality and stable administrative work at SPC from its establishment through liquidation and dissolution.

Deloitte Tohmatsu Akasaka International Co., Ltd. (abbreviated as DTAI) was newly established to strengthen fund management practices.

[Overview of the new company]
Corporate Name: Deloitte Tohmatsu Akasaka International Co., Ltd.
Head Office         : Akasaka Hinoki Bldg. 10-5 Akasaka 2, Minato-ku, Tokyo
Establishment     : October 2024
Representative   : Kei Maeda, Representative Director
 

Deloitte Tohmatsu Group (Deloitte Japan) is a collective term that refers to Deloitte Tohmatsu LLC, which is the Member of Deloitte Asia Pacific Limited and of the Deloitte Network in Japan, and firms affiliated with Deloitte Tohmatsu LLC that include Deloitte Touche Tohmatsu LLC, Deloitte Tohmatsu Risk Advisory LLC, Deloitte Tohmatsu Consulting LLC, Deloitte Tohmatsu Financial Advisory LLC, Deloitte Tohmatsu Tax Co., DT Legal Japan, and Deloitte Tohmatsu Group LLC. Deloitte Tohmatsu Group is known as one of the largest professional services groups in Japan. Through the firms in the Group, Deloitte Tohmatsu Group provides audit & assurance, risk advisory, consulting, financial advisory, tax, legal and related services in accordance with applicable laws and regulations. With approximately 20,000 people in about 30 cities throughout Japan, Deloitte Tohmatsu Group serves a number of clients including multinational enterprises and major Japanese businesses. For more information, please visit the Group’s website at www.deloitte.com/jp/en.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.

Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities, each of which is a separate and independent legal entity, provide services from more than 100 cities across the region, including Auckland, Bangkok, Beijing, Bengaluru, Hanoi, Hong Kong, Jakarta, Kuala Lumpur, Manila, Melbourne, Mumbai, New Delhi, Osaka, Seoul, Shanghai, Singapore, Sydney, Taipei and Tokyo.

Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our people deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society, and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s more than 450,000 people worldwide make an impact that matters at www.deloitte.com.