HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Latest Breaking News (Forum) » Bain Capital Under Invest...
Introducing Discussionist: A new forum by the creators of DU

Sat Sep 1, 2012, 11:11 PM

Bain Capital Under Investigation For Tax Avoidance-Romney Denies Any Benefit

Source: Forbes

New York Times is reporting that Bain Capital, the private equity firm founded by GOP presidential nominee Mitt Romney, is among a number of firms being investigated by New York Attorney General, Eric Schneiderman, for failing to pay taxes.

The New York AGís Taxpayer Protection Bureau has issued subpoenas to at least twelve financial firms, including Bain, looking into whether the companies converted management fees (taxed as ordinary income) paid by investors into fund investments which are taxed at a dramatically lower rate.

The controversial tax avoidance scheme came to light last month when Bain Capital internal financial information was published online by Gawker.com , however the investigation had reportedly commenced prior to the publication and is not believed to be tied to the document dump.

According to the Times

The tax strategy ó which is viewed as perfectly legal by some tax experts, aggressive by others and potentially illegal by some ó came to light last month when hundreds of pages of Bainís internal financial documents were made available online. The financial statements show that at least $1 billion in accumulated fees that otherwise would have been taxed as ordinary income for Bain executives had been converted into investments producing capital gains, which are subject to a federal tax of 15 percent, versus a top rate of 35 percent for ordinary income. That means the Bain partners saved more than $200 million in federal income taxes and more than $20 million in Medicare taxes.


Read more: http://www.forbes.com/sites/rickungar/2012/09/01/bain-capital-under-investigation-for-tax-avoidance-romney-denies-any-benefit/



Not this one:



This one:

%3F73b8e21685896c3f2859310aaa5adb253919b641

17 replies, 5366 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread

Response to Guy Whitey Corngood (Original post)

Sat Sep 1, 2012, 11:17 PM

1. K and R How sweet it would be to see Rmoney

with bars infront of his face

Reply to this post

Back to top Alert abuse Link here Permalink


Response to goclark (Reply #1)

Sat Sep 1, 2012, 11:22 PM

2. This is the best I can offer for now:



"These bars are not the right height"

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Reply #2)

Sun Sep 2, 2012, 05:40 AM

9. Love it!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Reply #2)

Sun Sep 2, 2012, 09:43 PM

16. "I can get a tax deduction for going to jail - I'll just convert my jail time into...

a cell management fee waiver, which is good for the taxpayer-investors who built this jail and invest in running it but the waiver is not good for me, the manager of my cell...no wait a minute, I'll convert my income from doing the jail laundry into a management fee waiver since I help the investor-inmates manage the laundry loads..."

Thanks for the pshop

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Original post)

Sat Sep 1, 2012, 11:23 PM

3. not this one either

https://www.google.com/search?client=opera&rls=en&q=Bane+death+gate+cycle&sourceid=opera&ie=utf-8&oe=utf-8&channel=suggest

if that search field works. otherwise type Bane and Death Gate Cycle

I say that because my screen name is based on that series. you'd have to be a fan to know why. I could have been Haplo. And technically the Patryns were skewered by the other race but his boss is a badass anyway. and he was gonna hurt the dog. oh Haplo was not having any of that.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Original post)


Response to rickprov (Reply #4)

Sat Sep 1, 2012, 11:53 PM

5. Trying too hard to deflect. As the investigation proceeds. We'll know more. That OK with you slappy?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Reply #5)

Sun Sep 2, 2012, 01:00 AM

6. About rickprov

 

Statistics and Information
Account status: Active Member since: Thu Jul 3, 2008, 06:20 PM
Number of posts: 2
Number of posts, last 90 days: 1
Favorite forum: Latest Breaking News, 1 posts in the last 90 days (100% of total posts)
Favorite group: NA
Last post: Sat Sep 1, 2012, 11:48 PM

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Original post)

Sun Sep 2, 2012, 01:20 AM

7. Well, IS it legal, or is it not?

The tax strategy ó which is viewed as perfectly legal by some tax experts, aggressive by others and potentially illegal by some ó came to light last month when hundreds of pages of Bainís internal financial documents were made available online.

But according to the financial "experts" at CNN/Fortune/Money, the Gawker documents prove nothing -- unless, of course, it's true that it's not really illegal. In which case this story could be a plant to generate sympathy and make it look like the liberals are all just picking on Mitt.


rocktivity

Reply to this post

Back to top Alert abuse Link here Permalink


Response to rocktivity (Reply #7)

Sun Sep 2, 2012, 04:56 AM

8. New York probes private equity tax strategy: source

(Reuters) - At least a dozen U.S. private equity firms have been subpoenaed by the New York state attorney general as part of a probe into whether a widely used tax strategy that saved these firms hundreds of millions of dollars is proper, a source familiar with the situation said on Saturday.

Among the firms that were subpoenaed are Bain Capital LLC, KKR & Co LP, TPG Capital LP, Apollo Global Management LLC and Silver Lake Partners LP, the source said.

Bain was once headed by Mitt Romney, the Republican candidate who hopes to unseat President Barack Obama in the November 6 election.

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.

http://www.reuters.com/article/2012/09/02/us-privateequity-probe-idUSBRE8800B620120902

I can only really relate to the UK where the issues would be an investigation into whether the scheme was tax avoidance or tax evasion. Same in the the US ? Given this goes back to July its unlikely it could be made to look like what you referred to as "Liberal nit picking"

Reply to this post

Back to top Alert abuse Link here Permalink


Response to dipsydoodle (Reply #8)

Sun Sep 2, 2012, 09:39 PM

14. "conversion of fees...private equity firms charge for managing investors' assets" = money laundering

This "management fee waiver" sounds like sleazy business. Yeah, right, it's "all for the investor," and not to evade taxes, sure. I don't believe it.

Show us the tax returns, Rmoney!

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Original post)

Sun Sep 2, 2012, 06:27 PM

10. Of Course Romney denies any benefit

Like when he left Bain in 1999 to run the Olympics and not responsible anything Bain did thereafter...blah, blah, blah

OR

He'll submit amended tax returns (oops, my accountant must have made an error) just like he did (after the fact it was discovered) when he lied he was a resident in Massachusetts for 7 years so he could run for governor.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Original post)

Sun Sep 2, 2012, 06:50 PM

11. How could it be legal to not claim these fees as ordinary income?

The fact that they're converting it doesn't seem like it should matter -- it's not as if they're deferring it into 401K's or something.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to JudyM (Reply #11)

Sun Sep 2, 2012, 09:41 PM

15. allegedly investment co's are doing this "for the investor" and not to evade taxes - total BS

Again, I'm calling it how I see it: Money laundering, fraud, lying and cheating while we "little people" keep the country going by obeying the law and paying taxes up the wazoo.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Original post)

Sun Sep 2, 2012, 08:11 PM

12. Hey Willard,

I'm not sure if you're aware of this, but "those people" in the New York Attorney General's office are going to have complete access the financial records of Bain Capital. They're going to see every transaction, including those check made out to you.

We're going to get your tax return through the back door. And speaking of back doors.

Enjoy prison.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Guy Whitey Corngood (Original post)

Sun Sep 2, 2012, 09:20 PM

13. 2 days ago Rmoney said, ""My promise is to help you and your family." How, by not paying taxes owed?

??? Answer me that, Tax Doge Mitt.

You see Mittens, the taxes go to things the country needs like roads, clean air/water, schools, and regulating businesses that otherwise pollute, poison, sicken and kill. But in your gated communities away from the real world, you don't get it, do you, selfish one?

Congrats to those working on getting this guy to at least pay what's owed, if not sock him with high penalties.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to wordpix (Reply #13)

Sun Sep 2, 2012, 10:33 PM

17. His empty promise reminds me of the ones that the compassionate christian war criminal made

prior to the rigged election of 2000.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread