Senator Seeks Action On Hedge Fund Tax Dodge

Jun 18 2014 | 8:33am ET

Sen. Ron Wyden isn’t happy that hedge funds are using insurance companies to avoid U.S. taxes—and he wants to know why something isn’t being done about it.

The Oregon Democrat last week asked the U.S. Treasury Department and Internal Revenue Service why steps were not being taken to close the loophole that permits the tax-avoidance strategy, one that has been employed by Paulson & Co., among others. By channeling investments through offshore insurance companies, hedge fund managers are able to pay capital-gains taxes, rather than the much higher ordinary income tax.

The IRS has been looking at the matter since 2003. Wyden asked why, after more than a decade, it has “made no progress in ending this kind of tax abuse.”

“I am keenly interested in exploring opportunities to work together to solve this serious issue,” Wyden said.


In Depth

Q&A: Executive Recruiter Talks Hedge Fund Closures, Hiring Trends

Dec 19 2014 | 6:58am ET

This year, hedge funds have been closing at a rate not seen since the financial...

Lifestyle

Cooper-Hohn Won't Contest Divorce Settlement

Dec 18 2014 | 9:51am ET

The ex-wife of hedge fund billionaire Christopher Hohn will not contest a divorce...

Guest Contributor

Alternative Investment Funds Face A Communications Imperative

Dec 19 2014 | 6:10am ET

A handful of the top alternative investment firms on both sides of the Atlantic...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.