Private equity bosses 'will bow to tax rises'
Private equity leaders face a further Treasury Select Committee grilling this week, but have already privately accepted hikes to personal tax rates, despite their public protests
The largest private equity firms are expected to yield to demands that they
pay more tax, even as they prepare for a showdown with the Treasury Select
Committee this week.
Permira, Blackstone, 3i and KKR will all appear before the committee on
Wednesday this week, and according to the Sunday Times will go into the
meeting having already accepted that the taxation of carried interest, which
allows buyout bosses to pay only 10% tax, will have to be reformed to ensure
that more tax is paid.
According to the Sunday paper, the private equity groups will publicly say
that they back a review of the industry’s tax affairs although privately they
have accepted that they will have to be taxed more.
The hearing before the influential Treasury Select Committee is expected to
be explosive, with MPs already saying that they will be relentless in their
questioning of the private equity giants.
Further reading:
See the names of the private equity
bosses who will appear before MPs
View
the timetable for Wednesday’s meeting