Private equity chiefs face up to tax review
Industry leaders express hope that Ed Balls's tax review will ease pressure on the sector and appease unions
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
statement.
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.’
Further reading:
Treasury to review private equity tax relief
Advisers say tax attack on private equity will yield
little
Wellcome Trust throws support behind private equity