Published on 04 Feb 10
by THE TAX INSTITUTE
The Draft TD refers to ‘Private Equity'. The Professional Bodies take this as a reference to the practice of many investors including superannuation and pension funds, insurance funds, mutual funds, sovereign funds and other institutional and non-institutional investors together (in collective investment vehicles) to make specific investments or classes of investment through pooling of investment capital allocated for that purpose. Private equity investment does not involve merely investment banks investing on their own account. Given the wide ambit of the potential application of the Draft TD, a more accurate and descriptive term for such investment activity may be Pooled Fund. That term is used in this submission.
NATIONAL INSTITUTE OF ACCOUNTANTS
TAXATION INSTITUTE OF AUSTRALIA