HK hedge funds urged to litigate in tax cases

Hong Kong hedge fund managers should consider litigating against the city’s Inland Revenue Department's challenge to their policies on taxation of remuneration, said some industry players. This comes as at least a dozen Hong Kong-based hedge funds have begun to make settlements with the government tax department on the issue. Industry observers hope this will result in the end of a wave of tax-related audits by the IRD that is now in its third year. Tax specialists estimate that…