The Income Tax Appellate Tribunal has ruled in favour of an investment fund that was prohibited from offsetting its losses against future profits because of a technical mistake it made when submitting its tax return.
The Nicholas Applegate South East Asia Fund is a Mauritius-based protected cell company (PCC). A PCC is an ordinary company that is statutorily authorized to segregate its assets into cells. A creditor of one cell can only proceed against the assets of that cell – a concept known as “ring-fencing”. PCCs are the most popular entity for use as collective investment vehicles across jurisdictions, especially in Europe. They are particularly useful when a fund manager desires to manage the assets of multiple funds and, at the same time, market the multiple funds as a single opportunity.
The Nicholas Applegate South East Asia Fund had four cells, each containing a separate sub-fund. Initially the company filed separate tax returns for each of its sub-funds. Later, however, a single consolidated return was filed by the company.
You must be a
subscribersubscribersubscribersubscriber
to read this content, please
subscribesubscribesubscribesubscribe
today.
For group subscribers, please click here to access.
Interested in group subscription? Please contact us.
你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章，欢迎成为我们的订阅会员成为我们的订阅会员。
The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.
