|
Gordon Brown has stated he may impose a tax clampdown on private equity funds, a move which could see the industry head for offshore company formations as a result.
The prime minister-in-waiting was speaking at the annual conference of the GMB trade union in Brighton this week.
Speaking on the topic of private equity funds the chancellor said "we will deal with this very important issue and make sure there is justice and integrity in the treatment of tax arrangements of this area".
Mr Brown added that the government has been reviewing the private equity industry since March this year and is soon to announce its results regarding whether the sector is exploiting any loopholes.
Concerns have been raised by some in the industry that private equity firms enjoy preferential tax planning and lower rates.
Ed Balls, the economic secretary to the Treasury, launched the investigation in March with a view to discover whether shareholder loans were in fact providing returns to investor free of the required capital gains tax.
Paul Kenny, GMB general secretary, told the Telegraph: "From what Gordon Brown told our conference, we conclude that the fat cats are losing the argument on tax.
"The GMB will continue to press for the withdrawal of unfair tax advantages and will continue to insist that pension fund trustees in companies targeted to be taken over by private equity demand cash up front to fix any holes in their pension funds."
See copyright notice
| Other
Top Business News Stories |
|
Business
News 
