The private equity industry has long been known for its ability to take advantage of tax rules. But international changes are set to have an impact on their businesses.
After a string of multinationals such as Apple, Google and Starbucks came under fire for paying minimal tax on their British and US sales in 2013, the Organisation for Economic Co-operation and Development set about modernising the tax system to clamp down on international tax avoidance. The Base Erosion and Profit Shifting, or BEPS, agreement is being developed to align tax policy across the globe.