A regulatory directive with tax implications
“If it moves, tax it. If it keeps moving, regulate it (…)” is a well-known quote by Ronald Reagan. This quote aptly describes the impact of the 2008 financial crisis on the financial sector (including the alternative investment fund industry).
The industry has become the subject of greater scepticism and scrutiny from public authorities, regulators and the political community.
The Alternative Investment Fund Managers Directive (AIFMD), which was adopted by the European Council on the 27 May 2011, is not a ‘tax’ directive per se, unlike the EU Parent-Subsidiary Directive, for example. However, in practice, the AIFMD will impact the business model of Alternative Investment Fund Managers (‘AIFMs’) by introducing a number of requirements or opportunities having a strong impact on their tax positions both on a domestic and crossborder basis. The European Commission also published on 19 December 2012 the level 2 regulation that will provide the basis for implementing the AIFMD across the EU.
The AIFMD has not yet been implemented in the various domestic laws of the EU member states, even though discussions have begun in several countries.
Performance issue 10 - January 2013
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.