MFA Submits Comments to Australian Treasury on Latest Draft IMR Legislation

On February 14, MFA submitted a comment to the Australian Treasury regarding the most recent draft Investment Manager Regime legislation (IMR 3).  In our letter, we noted that the revised draft, while containing some positive changes, continues to have provisions that make it unlikely to achieve its objective of encouraging foreign funds to invest in Australia by removing uncertainties about their tax treatment.  In particular, we expressed concerns with the draft’s (1) limits on the amount of any individual’s participation in a fund, which could exclude many funds as a result of standard performance allocations; (2) requirements to look-through certain intermediary investors; and (3) retroactive application of certain requirements to prior tax years.