BISYS To Offer Hedge Fund Tax Reporting For Non-German Hedge Funds

BISYS announced it will now offer comprehensive hedge fund tax reporting for non German hedge funds. The offering is in full compliance with the German Investment Act and Investment Tax Act, which took effect on January 1, 2004, overhauling the

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BISYS announced it will now offer comprehensive hedge fund tax reporting for non-German hedge funds. The offering is in full compliance with the German Investment Act and Investment Tax Act, which took effect on January 1, 2004, overhauling the tax treatment of investments in non-German investment funds.

The laws provide a legal framework for hedge funds in Germany, and enable investors in a non-German domiciled “transparent fund” to obtain the favorable tax benefits that previously were only applicable to German investments in German domiciled funds.

Historically, tax reporting has been the primary roadblock for selling non-German hedge funds in Germany, and BISYS has established itself as a pioneer in developing reporting that complies with the stringent German tax requirements. Working closely with taxation experts in the German market, BISYS provides the information required to enable funds based in any jurisdiction to be certified as fully transparent. Under German law, this allows the fund to be filed with and approved by the German authorities, enabling German investors to receive favorable taxation benefits.

These tax benefits allow German investors to have full or partial exemption on capital gains and dividend income as well as other preferential tax treatments. BISYS also provides tax reporting for Fund-of-Funds investors in other hedge funds, to allow them to attain the transparency they need to meet the Germantax requirements.

BISYS clients, Zulauf Asset Management AG and Absolute Portfolio Management Limited, are both utilizing BISYS’ comprehensive tax reporting offering. Their non-German funds, Gondwana Fund Limited, Absolute Plus Convertible Arbitrage Fund Limited, and Absolute Plus European Hedge Fund Limited, have all been certified under the German tax legislation with a fully transparent tax status the most advantageous status for a non-German hedge fund and its investors.

“We believe this is a win-win situation for everyone”, said Karen Tyrrell, managing director of BISYS Hedge Fund Services in Europe. “We are excited to offer the tax reporting component to our clients and open the doors within the German marketplace to these dynamic investment vehicles. We worked hard to get the proper tools and procedures in place and look forward to continued growth in the German marketplace.”

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