Jon Hanifan Quoted by Financial Times on Possible German Fund Tax Levy
Financial Times, in its article “Germany poised for alternative fund tax crackdown,” quoted Akin Gump hedge funds tax principal Jon Hanifan on the potential impact that a possible tax on certain German investors as a way to curb tax evasion could have on alternative fund managers working in Germany.
Hanifan noted that were the tax levy to be applied, it could “narrow the range” of alternative fund managers that distribute funds in Germany. He also said that several of the firm’s fund management clients have consulted him regarding the value of structuring new funds such that German investors would be permitted to invest in them, noting “If the investment amounts are big enough, or if there is a large number of German investors interested, [an alternative fund manager] would do it. But if you have one investor offering €1 million, it is probably not worth it. Or the manager could say that the investor has to pay for it, which will create a drag on that investor’s returns.”