HKPEFA and KPMG Joint Seminar: Mergers & Acquisition Tax Update
KPMG shared with over 40 HKPEFA members their experiences and insights on the latest hot topics that affect the private equity industry:


(1) Delisting, relisting and VIE restructuring 


Mainly driven by the capital market valuation disparity and regulatory development in China, delisting from the US and relisting on A-share market has been a hot trend in the last couple of years.  VIE restructuring is often part of the transaction.  However, significant tax and accounting issues from both China and US perspectives, if not dealt with property, could not only give rise to significant tax liabilities, but also derail the future IPO. KPMG is a leading advisor in delisting transactions and we were pleased to have Paul Ma, Partner, Tax, Deal Advisory, M&A to have shared with us his insight from experience dealing with transactions such as Asia-info leakage, iSoftStone, Spreadru, Shanda Games, Perfect World, Qihoo360,, Fushi Copperweld, Mindray etc. 


(2) Carry interest treatment for HK corporate and salaries tax purposes 


Tax treatment for carry interest has been a controversial topic for the private equity fund industry in Hong Kong and other parts of the world.   Darren Bowdern, Partner, Mergers & Acquisitions shared with us the latest HK IRD challenges and insights from various cases KPMG have assisted clients to prepare and address in the past.

Many thanks to Jocelyn Lam for being our facilitator and organiser for the session.