Romney Fundraiser Host Used Controversial Tax Strategy [View all]

Source: CNBC

Marc J. Leder, the private-equity chief who hosted Mitt Romney’s secretly taped fundraiser, used a controversial tax strategy that’s come under scrutiny from the New York Attorney General, according to court documents and people familiar with the matter.

According to court documents filed as part of his 2009 divorce, Leder created a system for turning hundreds of millions of dollars in ordinary income into investments that would be taxed at a much lower rate.

The strategy, known as “a management fee waiver,” may have lowered his tax bill by millions of dollars over time, according to the documents.

Leder’s private equity firm, Sun Capital Partners, is one of more than a dozen private-equity firms being investigated by New York State Attorney General Eric Schneiderman to see whether they used management fee waivers to avoid taxes, according to people familiar with the matter.

Read more: http://www.cnbc.com/id/49103957