Tax havens: squeaky bum time for those with accounts in the British Virgin Islands

Generali

chewmylegoff wrote: »

Presumably though, although the money was initially paid by investors to an account in the caymans, controlled by your custodian, the money was pretty rapidly moved to an prime brokerage account in the uk and under the control of an fsa authorised bank. Most hedge funds don't have large standing balances in tax havens as far as I aware? The caymans structure is more about ensuring that (I) the funds profits are not subject to uk corporation tax; and (II) the fund manager's cayman entity can received the first cut of management and performance fees and then pay it as an offshore bonus to all the non-Dom hedge fund principles...

I've done a very rough structure above. All owners of the hedge fund were UK tax residents.