Private equity not paying 'a fair share of corporation tax'
Chief executive of Aggreko, Rupert Soames, backs criticisms of industry already under attack from unions
The chief executive of Aggreko has added to criticism of private equity tax
arrangements, piling the pressure on an industry already under fierce attack
from the trades unions.
Soames, writing to the
Telegraph, said that private equity firms were not paying a ‘fair share of
corporation tax’ and that ‘if large swathes of the UK economy pay less tax,
other companies and individuals pay more.’
The industry is accused of taking advantage of interest relief rules in
particular. Private equity arrangements commonly involve large amounts of debt
which can be offset against UK tax, with offshore set-ups in place to minimise
the level of tax paid.