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The NY AG has reportedly subpoenaed at least a dozen P-E firms as part of an investigation into...

The 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.
Comments (6)
  • deercreekvols
    , contributor
    Comments (5241) | Send Message
     
    If the NY AG wants to look into tax issues, they he should try looking at the tax breaks hundreds of companies are getting in NY State every year. NY is billions in debt and the folks who live in The Empire State, like me, don't get any tax breaks. If I threaten to move from NY, would they give me a tax break to stay?

     

    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.
    2 Sep 2012, 09:31 PM Reply Like
  • SanDiegoNonSurfer
    , contributor
    Comments (2637) | Send Message
     
    Legal tax breaks are, uh, legal. The AG (in case you didn't know) investigates *illegal* activities. That's why they're called Attorneys General.
    3 Sep 2012, 02:33 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5241) | Send Message
     
    Thanks for the clarification.

     

    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.
    3 Sep 2012, 06:06 PM Reply Like
  • mweaver
    , contributor
    Comments (201) | Send Message
     
    new york needs revenue
    this is extortion plain and simple
    3 Sep 2012, 06:45 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5241) | Send Message
     
    Here is another opinion of the timing of NY AG's "investigation."

     

    http://bit.ly/Q4dS4a

     

    Anyone still want to argue that it is not politically motivated?
    4 Sep 2012, 09:42 PM Reply Like
  • tfcmorr
    , contributor
    Comment (1) | Send Message
     
    Yes. that editorial is filled with well-researched truth and credible, sensible conclusions with no hint of inflammatory tone.
    5 Sep 2012, 05:06 PM Reply Like
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