Co-founder of equity giant Apax questions tax relief for partners of large firms, while government considers further examination of the industry
Accountancy Age, 14 Jun 2007
Owners of private equity giants should pay more tax, according to a co-founder of Apax, Sir Ronald Cohen.
Sir Ronald said the capital gains tax relief given to private equity partners' earnings, allowing them to pay tax at ten percent rather than at the higher rate of 40%, should be re-examined, reported the FT .
'Maybe the ten percent rate needs to be raised to something more reasonable,' said Sir Ronald.
He said the tax break was still appropriate for smaller and more entrepreneurial funds.
The government is placing the private equity industry under increasing scrutiny, as criticism of partners' use of tax relief grows.
The Treasury Select Committee is set to increase the number of sessions it holds looking at the way the industry operates, reports The Daily Telegraph .
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