Synthaholic
Diamond Member
Slow down there, Speedy.New York Attorney General Eric Schneiderman issued a round of subpoenas to five private equity firms back in July. He's investigating a rather common practice in the industry known as the "management fee waiver," whereby fees (which would normally be counted as income, taxable up to 35 percent) are converted instead into investments (later taxable at the lower 15 percent capital gains rate). While it's not exactly illegal, ...
End of story.
Next transparent political hatchet job, please.
WASHINGTON (Reuters) - U.S. tax authorities took no formal action after launching a probe five years ago of tax strategies used by private equity managers at firms such as Bain Capital LLC, leaving a legal gray area that is now being examined by New York's attorney general.
IRS warned, but did not act on tax strategy for private equity - chicagotribune.com
Let the investigations begin!