Crackdown on tax avoidance by LLPs

2014-01-30 Jennifer Renney-Butland posted:

Interesting argument that the government’s proposed crackdown on limited liability partnerships (LLPs) will, according to City firms, increase systemic risk to the financial sector. How so? If partners in an LLP cannot show that they have a financial stake in the partnership, are not rewarded by way of profits, and do not play an active part in management, in what way are they partners and not employees or consultants?

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