Apax co-founder questions private equity tax breaks
Co-founder of equity giant Apax questions tax relief for partners of large firms, while government considers further examination of the industry
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 .
Further reading:
Advisers push a minumum CGT threshold for private
equity