Industry blasts Hong Kong funds tax proposal

Hong Kong's future as a regional hub for the funds management industry hangs in balance as the government reviews comments on its proposals to clarify the tax status of offshore funds. The uncertainty over the tax treatment was highlighted in 2001 when profit tax returns were issued to several of Hong Kong's offshore funds. Although none are believed to have actually paid the tax - and the government has stated its intention to clarify the law to exempt offshore funds - the ensuing u…