Archive - June 2015
CCA 201525010: CODI, recourse v nonrecourse liabilities and tax uncertainties
CCA 201525010 offers a useful insight and a cautionary tale regarding the unpredictability of certain recourse v. non-recourse liability issues in the partnership context. The issues which are the topic of the CCA arise primarily in the private equity fund context, and more often in the real estate context. What are the issues? When a project is held by an entity treated as a partnership and has some sort of financing, there is a substantive tax question regarding whether this financing is recourse or non-recourse for tax purposes. This determination could have various implications....
June 22, 2015 read more
W-8 and W-9 electronically signed print-outs, valid?
Here is the kind of 21st Century issue that often makes investment fund compliance uncertain and complex. The issue was raised recently by the Association of Global Custodians which requested an update of the FATCA FAQ clarifying that electronically signed print-outs of W-8s and W-9s should be treated as valid documentation for withholding purposes. What’s the problem here? FATCA regulations allow investment funds to maintain electronic portals whereby they can collect various withholding forms electronically. Some funds have them some don’t. For the funds that do, instead of...
June 10, 2015 read more