Investment funds have highly specialized tax and accounting requirements. Their regulatory and investor reporting obligations are very rigorous. John Mott manages a specialist tax and accounting practice that delivers a highly personalized consulting and compliance service to small and medium-sized investment funds that choose to out-source some or all of their tax, accounting and reporting obligations. Mott’s practice is often able to complement the service offerings of the large third-party fund accounting and valuation providers.
Mott’s practice specializes in providing tax and accounting services to investment funds. Fund clients currently being serviced are varied as follows:
- net assets ranging from $5 to $300 million;
- investors numbering from 10 to over 60,000;
- distribution by Offering Memorandum and Prospectus;
- investor record keeping book-based (CDS) and certificated;
- listed and private.
Fund clients pursue a variety of investment strategies:
- hedge funds;
- resource flow-throughs;
- venture capital;
- fixed income;
Fund clients are legally organized in a variety of forms:
- limited partnerships;
- labour sponsored venture capital corporations;
- mutual fund trusts;
- mutual fund corporations;
- closed-end unit trusts.
Tax services provided to investment funds include:
- preparing annual tax reporting (forms and instructions) to investors;
- printing and mailing of investor tax forms;
- preparing fund tax and information returns for reporting to the federal and provincial tax authorities;
- preparing adjusted cost base (ACB) calculations;
- providing technical support to the investor services function;
- providing tax rate and other information to support the marketing/sales function;
- researching fund and investor tax issues.
Accounting services provided to investment funds include:
- fund accounting and valuation;
- supervising and liaising with the internal or third-party fund accounting and valuation service;
- supporting and liaising with the external auditors;
- preparing interim financial statements for reporting to investors;
- preparing MER calculations;
- preparing management fee calculations;
- computing the financial statement provision for income and capital taxes;
- providing technical support to the investor services function.