Many investment funds with international investment strategies have existing European investment platforms or some European infrastructure to facilitate E.U. investments. Many of those funds have spent significant time over the last few years evaluating those structures in light of treaty benefits and increased economic substance requirements, among other things. In connection with those evaluations, and to ensure that appropriate tax benefits continue to be available, many fund managers already have a clear understanding of the Organisation for Economic Cooperation and Development’s Base Erosion Profit Shifting initiative and related tax concepts. Developments in both national and international law, however, indicate that now is an appropriate time to further examine existing and future cross-border structuring, particularly in light of the introduction of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). In a guest article, Will Smith, partner at White & Case, analyzes one key aspect of the MLI; market uncertainty arising from recent case law; the impact of the so‑called “Dutch cases”; and the implications for investment funds. For additional commentary from Smith, see “Practical Tax Considerations Arising From Trends in European Fund Structuring
” (Jun. 13, 2019); and “Tax Developments May Make U.K. Limited Companies More Favorable Than U.K. LLPs for U.S. Fund Managers
” (Apr. 20, 2017).