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: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...

 

FINalternatives Trending

From the current issue of