Navigating the Maze: AIFMD and New Tax Rules - A Channel Islands Funds' Perspective breakfast briefing - March 2016

Ongoing regulatory and tax changes in the funds industry continue to shape the competitive landscape for Jersey and Guernsey.  The Islands are expected to obtain recognition under AIFM and EU passporting, alongside the private placement regime method, but this brings new reporting and regulatory requirements.  At the same time, changes in international tax are leading to a new world of transparency and scrutiny from tax authorities.    

PwC recently brought together industry thought leaders to discuss these changes, the effect they will have on the funds industry and different ways in which Jersey and Guernsey businesses may be impacted.  Key topics covered included:

  • Recapping the AIFM reporting obligations both in EU investor territories and to the Jersey/Guernsey regulators.
  • Why AIFM reporting and tax information from FATCA and CRS need to be aligned.
  • What are the substance and transfer pricing implications for island businesses that decide to use passporting, what benchmarks exist, and how might country-by-country reporting work for funds in Jersey and Guernsey.
  • The private placement regime and any heightened permanent establishment risks from the visibility given by CRS.
  • The potential impact of new "disguised management fee" rules in the UK, as well as changes in non-dom rules and carry rules.  How will administrators run average period calculations, taking account of partial disposals, debt for equity swaps etc?
  • An update on the progress of the OECD's Action 6 on treaty abuse and potential approaches for alternatives.
  • Onshore/Offshore regimes contrasted.

The PwC Channel Islands tax team were joined by industry experts from PwC UK; Rob Mellor, Tim Wright, Grant Lee and Peter Brewin and provided insights into these and other issues at the breakfast briefing.

Click here for survey results for Jersey and Guernsey on AIFMD and New Tax Rules.

If you have any queries, please don't hesitate to contact your usual PwC contact.