BusinessCorporate FinanceUS proposal threatens PE tax rules

US proposal threatens PE tax rules

Carried interest viewed in part as income, Congressional Budget Office says

Financial rewards earned by private equity partners should in part be subject
to income tax, according to a senior US finance official.

Peter Orszag, director of the US Congressional Budget Office told Congress
that ‘most legal and economic analysis suggests that carried interest
represents, at least in part, a form of performance-based compensation for
services undertaken by the general partner’, the
Financial
Times
reports.

The analysis will add fuel to the private equity tax debate raging on both
sides of the Atlantic.

Orszag warned that as long as there was a difference between the tax rate on
income and capital gains people will try to turn income into capital gain.

Related Articles

Grant Thornton recruits new corporate finance partner

Accounting Firms Grant Thornton recruits new corporate finance partner

10m Emma Smith, Managing Editor
Total fraud value at £2bn five-year high, finds BDO

Accounting Firms Total fraud value at £2bn five-year high, finds BDO

11m Stephanie Wix, Writer
MHA MacIntyre Hudson appoints corporate finance director

Accounting Firms MHA MacIntyre Hudson appoints corporate finance director

11m Stephanie Wix, Writer
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
KPMG announces senior partner promotion in Newcastle

Accounting Firms KPMG announces senior partner promotion in Newcastle

11m Stephanie Wix, Writer
Independent city firm reports 70% growth

Accounting Firms Independent city firm reports 70% growth

11m Stephanie Wix, Writer
Tax avoidance crackdown sees 80% jump in additional HMRC revenue

Accounting Firms Tax avoidance crackdown sees 80% jump in additional HMRC revenue

11m Stephanie Wix, Writer
Making Tax Digital: the "unexpected item in the bagging area"

Accounting Standards Making Tax Digital: the "unexpected item in the bagging area"

11m Stephanie Wix, Writer