Deal money will rise up to $102 trillion in 2020, meaning the Indian Govt for one will need to get its tax laws straight

Global Assets Under Management (AUM) are going to expand up to $102 trillion by 2020, a report said, adding the tax function would play a critical role in determining front-runners in this regard.

According to the PwC report titled ‘Asset Management 2020 and beyond’, investors' expectations will include a robust and efficient tax infrastructure by 2020 and zero tolerance of tax uncertainty or tax adjustments.

Moreover, the tax function will be critical in determining those players in the market who will be best positioned to win greater share of business in the next five years.

In-house asset management tax teams will need to evolve to deal with perpetual audits and to engage with tax authorities regularly to influence policy.

The report noted that as banks and insurers retreat from many business lines, asset managers are becoming more influential across a range of products, creating a new breed of global mega-managers.

By 2020, tax authorities would have specialist teams with the capabilities to carry out much more detailed enquiries than in the past, and the powers to request real-time investor-related information.

(Image: Indiatimes)