In the core reading it says, about Private Equity: "There are unlikely to be tax cashflows or debt cashflows as the fund will typically be in a zero tax environment" Why is this? I thought you only paid zero tax if you didn't make any income or capital gains.
Tax and P Eq Hi The funds that invest in Private equity benefit from special tax regimes. And the investors who invest in those funds often benefit from tax benefits like the "enterprise initiative scheme" which exempts a lot of investors from any tax on private equity investment. I think it was introduced to help fund new companies. But as a result tax is not a big issue.
