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The NY AG has reportedly subpoenaed at least a dozen P-E firms as part of an investigation into...
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Sunday, September 2, 2012, 3:16 AM ETThe NY AG has reportedly subpoenaed at least a dozen P-E firms as part of an investigation into the legality of a widespread tax strategy that has saved the firms hundreds of millions of dollars. The companies include KKR, Apollo Global Management (APO) and Bain. Under the practice, firms convert certain management fees into fund investments, which are subject to lower tax rates.
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This news story has 6 comments:
Is there any doubt why Bain is being investigated? Couldn't have anything to do with Mitt Romney could it?
Of course not. The NY AG would never play politcal "games." Remind me of his political party affiliation.
It makes sense that legal tax breaks are legal. The issue in NY is that companies are granted tax breaks in a time when the state is billions in debt. Legal or illegal, these tax breaks need to stop. Companies need to pay their fair share just like the citizens of NY do. There seems to be a fine line between legal and ethical.
The timing of the investigation is very questionable, in my opinion. It is not like Bain and the others have just started using this tax strategy, which may or may not be legal or illegal from what I can gather.
this is extortion plain and simple
http://bit.ly/Q4dS4a
Anyone still want to argue that it is not politically motivated?