Inland Revenue scrutinises fund transfer pricing

Hedge fund managers should ensure valuations of work by their offshore operations are at arms' length as the Inland Revenue focuses on transfer pricing as part of its crack-down on hedge funds, according to tax experts.

Robert Edwards, tax partner at London fund support firm HedgeStart, said transfer pricing was one of a few 'hot' areas the Inland Revenue was currently examining, and a key tax risk to hedge fund managers ignoring experts' advice.

Problems with transfer pricing ' the paying of

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