Zero % Tax for Hong Kong s Carried Interest Tax Concession natlawreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from natlawreview.com Daily Mail and Mail on Sunday newspapers.
Brookfield Asset Management Inc: Reports $6.4 billion of Investment Gains in First Quarter on $13 billion of Asset Sales
(US$ millions, except per share amounts)
Three Months Ended
2
2,3
2. Excludes amounts attributable to non-controlling interests.
3. 2020 per share amounts have been adjusted to reflect BAM s three-for-two stock split effective April 1, 2020.
4. See Basis of Presentation on page 8 and a reconciliation of net income (loss) to FFO on page 5.
Funds from operations (FFO) in the quarter were a record $2.8 billion and net income was $3.8 billion. This was due to strong financial results in our operations, the ongoing growth in our asset management franchise and increased asset sale activity. Growth in FFO from our invested capital was strong despite a lagging impact of our property results from the global shutdowns, but as economies normalize our affected assets are all coming back.
As long awaited by the Hong Kong private equity funds industry, the Inland Revenue (Amendment) (Tax Concessions for Carried Interest) Ordinance 2021 (the Amendment Ordinance) became law.
Basis of Presentation
This news release and accompanying financial statements are based on International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), unless otherwise noted.
We make reference to
Funds from Operations (“FFO”). We define FFO as net income attributable to shareholders prior to fair value changes, depreciation and amortization, and deferred income taxes, and includes realized disposition gains that are not recorded in net income as determined under IFRS. FFO also includes the company’s share of equity accounted investments’ FFO on a fully diluted basis. FFO consists of the following components:
FFO from Operating Activities represents the company’s share of revenues less direct costs and interest expenses; excludes realized carried interest and disposition gains, fair value changes, depreciation and amortization and deferred income taxes; and includes our proportionate share of FFO from
Income Tax Increases on the Wealthy
The Biden Administration proposes to increase income taxes on
the wealthy and provide more resources to the IRS to enhance
compliance. The headline increases relate to taxing capital gains
and qualified dividends at the top ordinary income tax rates and
the elimination of the step up in basis rule.
Increase Top Income Tax Rate. The rate would
be increased to 39.6 percent (from 37 percent) for taxpayers within
the top 1 percent.
2 Note, the 39.6 percent rate was the top
rate in effect prior to the Tax Cuts and Jobs Act of 2017
(TCJA).
Subject Long-Term Capital Gains and Qualified Dividend