Many of the SMSFs in the ATO's sights have limited recourse borrowing arrangements in place, with most of the almost 18,000 SMSFs holding most of their assets in property.
Hong Kong hedge funds are particularly affected because they use Cayman investment managers, while offshore management companies have been less popular among European managers in recent years, according to Bloomberg.
The Securities and Exchange Board of India, or SEBI, has always been suspicious of the source of capital for hedge funds investing in India from Singapore or Hong Kong
In her budget, finance minister Nirmala Sitharaman proposed a tax increase of 3% for individuals with an annual income of of between Rs 2 and 5 crore, and 7% for those earning more those earning more than Rs 5 crore
After the banking crisis, 10 countries suffered losses in excess of USD100 billion every year through tax evasion, according to 2011 data from the Tax Justice Network.
The surcharge, popularly known as a "Robin Hood" tax, will help fund the government's development spending