Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Fido Throws it Weight Behind Fund Tax Reform Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, June 16, 2010

Fido Throws it Weight Behind Fund Tax Reform

News summary by MFWire's editors

Fidelity Investments is taking a public stand to support changes to the tax treatment of mutual funds. Stephen Fisher, senior vice president and deputy general counsel at the Boston Behemoth, testified in support of Rep. Charlie Rangel's (D-New York) bill that was initially introduced last fall. Fisher's testimony was reported by the WSJ Fund Track column on Wednesday.

Fisher spoke the disparate tax treatment of funds-of-funds compared to even the treatment of standard mutual funds. Fund-of-funds cannot pass on the tax benefits of municipal bonds and foreign security tax credits, testified Fisher.

House Ways and Means Select Revenue Measures Subcommittee Chairman Richard Neil (D-Massachusetts) called the RIC Modernization Hearing (see agenda) on "The Regulated Investment Company Modernization Act of 2009" (H.R. 4337).

The paper did not report on the testimony of the two additional witnesses: William M. Paul of Covington & Burling and Joseph A. Riley of Willkie Farr & Gallagher.

Fidelity's Fisher also raised complexities faced by sponsors of mutual funds with multiple share classes, pointing out that the structure makes it easier to inadvertently pay shareholders a preferential dividend, thereby creating a corporate tax liability for the mutual fund.

He also noted carry loss forward rules that limit funds to eight years for mutual fund investors compared to indefinite carry forwards for investors in individual securities.

A third major issue addressed by Fisher to the committee are the unintended tax consequences of treating investment companies as conventional "C" corporations.

RICs are Washington shorthand for "regulated investment companies," or mutual funds. 

Edited by: Sean Hanna, Editor in Chief


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2019
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use