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Published date: 5 July 2024

Tackling tax issues and investment funds - Episode 1: Untangling the complexity of Pillar Two for investment funds

As investment fund managers grapple with the potential impacts of Pillar Two legislation, a select group of Ashurst’s tax experts have compiled this podcast to demystify the details.

Adnand Sulejmani offers a brief overview of the Pillar Two legislation, its original intent and how it is enforced in Luxembourg. He also explains how to determine whether an investment fund falls within the scope of Pillar Two, including potential exemptions that exist. Alexandra Clouté explores what implications Pillar Two has for widely held and closely held Luxembourg investment funds. She also emphasises that, whatever scenario a fund finds itself in, it’s vital that fund managers perform due diligence and verify the consolidation status with investors to ensure that there are no unforeseen issues.

Patricia Allen points out that Pillar Two is more likely to apply for single investor funds or segregated mandates, and Alastair Ladkin explains how fund managers are already responding, including: mak