Hong Kong hedge funds caught in tax haven crackdown

Hong Kong hedge funds have found themselves in the crosshairs of the new laws introduced in the Cayman Islands targeting companies firms that shift their intellectual property to subsidiaries in low or zero-tax jurisdictions to lower liabilities, Bloomberg reported. The Economic Substance Law, effective 1 January 2019, requires firms involved in a range of activities including funds management, banking, finance and leasing, to maintain a level of operational substance that is effectively commensurate with their income-generating activities. Similar laws were also introduced in other offs...