Welcome to our April 2023 edition of the Funds Tax Bites, where we provide a “bite size” overview of the key recent and anticipated tax developments globally that we expect to be of interest to those operating in the investment funds industry.

In its efforts to continue to promote fair tax competition and address harmful tax practices, the European Council decided on 14 February 2023 to add the British Virgin Islands, Russia, Costa Rica and the Marshall Islands to the EU list of non-cooperative jurisdictions for tax purposes or “blacklist”. Now is the time for multinational enterprises and investment funds with subsidiaries or investors in these jurisdictions to consider the potential tax implications of this development on their structures.

The UK and international tax landscape has never been quiet for fund and asset managers (GPs) but a number of recent tax developments will have the potential to significantly affect how these businesses operate. Some of these developments will, however, be welcome by most GPs.