Friday, March 13, 2009

Curtis Alert on Stop Tax Haven Abuse Act

Curtis publishes Alert on the Stop Tax Haven Abuse Act, which analyzes the impact on investment funds of tax havens and foreign secrecy laws. The Stop Tax Haven Abuse Act comes on the heels of the tax proposals in President Obama's 2010 budget plan which proposed to tax carried interest as ordinary income. The bill includes several harsh tax treatments, including taxing certain foreign corporations managed and controlled in the U.S. as domestic corporations, and requiring withholding tax on dividend substitute payments from swaps and other derivatives. The bill, expanded from the prior legislation cosponsored by then Senator Obama in the Senate and then Congressman Emanuel, has been endorsed by Treasury Secretary Geithner and is expected to be a top priority in Congress.

Link: Curtis Alert


Update: Connecticut Banks Committee Passes Bill Concerning Hedge Funds

The Banks Committee of the Connecticut General Assembly voted on March 10, 2009 to pass "An Act Concerning Hedge Funds" that would, among other changes, increase the minimum financial qualifications for investors in private funds to at least $2.5 million for individual investors and at least $5 million for institutional investors in "investment assets" which include any security, real estate held for investment purposes, bank deposits, cash and cash equivalents, commodity interests held for investment purposes and such other forms of investment assets as may be established by the Banking Commissioner. If passed by the Connecticut General Assembly, the bill may become effective as early as October 1, 2009.