BusinessCompany NewsWall Street tax ‘gimmicks’ investigated

Wall Street tax 'gimmicks' investigated

A US government report is expected to uncover billions in lost taxes, implicating big name investment banks

An investigation by the US congress has alleged derivative ‘gimmicks’ have
been employed in helping hedge funds avoid billions of dollars in taxes.

According to a report on
ft.com,
the Senate permanent subcommittee on investigations says the strategies enabled
investors to avoid paying the 30% withholding tax on income by treating dividend
payments as returns on so-called equity swaps, stock loans or other derivatives
transactions.

The report includes transactions made by some of the largest investment
banks, including Lehman Brothers, Morgan Stanley, Citigroup, Deutsche Bank, UBD
and Merrill Lynch.

Carl Levin, a Democrat and chairman of the subcommittee, said impacts of such
a scheme have denied the US government of billions of dollars in taxes.

‘These are gimmicks which are peddled by American financial institutions
[and] designed, concocted and peddled to deny Uncle Sam the taxes that are owed
under our law,’ he said.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

4w Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor