Private equity leaders have expressed their hope that the review of how the
industry is taxed, announced by economic secretary
Ed Balls , will bring a
close to the controversy that has clouded firms recently.
Industry body, the British Venture Capitalist Asscociation, said the
proposals announced by Balls, which will explore the use of shareholder debt in
highly-leveraged deals, would hopefully take the heat out of the recent debate
on the merits of the industry.
‘We look forward to to contributing to the review,’ the BVCA told
the FT in a
Paul Kenny, general secretary of the GMB Union, one of the most aggressive
private equity opponents, welcomed the review.
Kenny said: ‘Ed Balls confirmed that there are rules to ensure that equity is
not disguised as debt to in order to obtain a tax deduction.’
HMRC compliance crackdown targets SMEs, resulting in £468m for year ending 31 March 2016
The average cost of fraud increased 35.4% to £3.9m in 2016, compared to 2015 data
Report argues that the government must change the way it makes tax and budget decisions
Committee expresses concern about costs to businesses and April 2018 implementation date