PANews reported on January 16th that, according to the Financial Times, the U.S. Internal Revenue Service (IRS) has proposed amending Section 892 of the tax code, planning to redefine certain direct investment activities of sovereign wealth funds (SWFs) and public pension funds as "commercial activities," thereby subjecting them to taxation. The new rule may cover forms such as direct lending, debt restructuring, and co-investment, potentially affecting previously completed investment projects. This proposal is seen as potentially forcing SWFs to adopt more passive investment methods. The comment period ends on February 13th.
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