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Romney's Bain Capital subpoenaed over taxes

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Many private equity companies have been riding a fine line with taxes and they may finally be getting called on it. For this group, enough is never enough no matter how much they fleece their country or other businesses. The Guardian:
The subpoenas, which were sent out in July, seek documents related to the conversion of fees these private equity firms charge for managing investors' assets into fund investments, the source said. This means the investigation predates the release last month of confidential Bain fund documents by Gawker that revealed such a practice.

The practice is known as a "management fee waiver." As fund investments, the income would be taxed as capital gains, which attract rates around 15%. Without the conversion, the fees would be ordinary income, taxed at rates around 35%.

Other firms that received subpoenas include Sun Capital Partners; Clayton, Dubilier & Rice; Crestview Partners; H.I.G. Capital; Vestar Capital Partners; and Providence Equity Partners.

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