Tuesday, 30 August 2016
Last updated 15 hours ago
Sep 18 2012 | 11:04am ET
New York City has quietly dropped plans that could have increased taxes on hedge fund managers based in the Big Apple.
The city's Department of Finance late last year decided it would no longer allow hedge fund and private equity fund managers to claim an exemption from its unincorporated business tax, a 4% levy on expenses such as staff compensation. But now, Tax Analysts reports, the city, the world's largest hedge fund center, has changed its mind and will not change the way it audits hedge funds.
"Expense attribution remains an ongoing area we review, but we are not pursuing an audit program specific to the hedge fund industry at this time," Owen Stone, press secretary for the department, told Tax Analysts.