A closed FGR which is established in the Netherlands and which receives income arising in Norway may itself, represented by its fund manager or its depository, in lieu of and instead of the investors in the closed FGR, claim the benefits of an agreement for the avoidance of double taxation to which Norway is a party and which is applicable to those investors on behalf of those investors in the closed FGR.
Such claims may be subject to enquiry and, where requested, a fund manager or depository shall provide relevant information which may include a schedule of investors and allocated income relevant to a claim.
A closed FGR may not make a claim for benefits on behalf of any investor in the closed FGR if the investor has itself made a claim for benefits in respect of the same income. If a closed FGR intends to make a claim for benefits on behalf of an investor, the fund manager or its depositary should clearly communicate this to the investor to avoid duplicate claims in respect of the same income.
The mutual agreement with Norway has already been signed on 19 January 2012, but has only been made public by way of press release on 12 March 2012. It will be subject to regular review.
In June 2010, the Netherlands entered into a similar agreement with Canada and in September of that year with the United Kingdom. Currently negotiations are still ongoing to also come to a ‘Competent Authority Agreement’ with the United States of America.
- Various translations of fonds voor gemene rekening are possible, such as “mutual fund”, “fund for mutual account” or “fund for joint account”.
- The tax term “closed” should not be confused with the commercial term “closed-end” which usually refers to restrictions on the redemption of participations.