Carried interest tax debate re-kindled

Carried interest earned by private equity GPs is taxed as capital gains, not as income: that’s just the way it is. The Obama administration promised to end this tax break, but the reform was quietly swept under the carpet. However, the debate looks likely to be re-kindled in Europe. A new interpretation of tax regulation in Sweden has the potential to strike a devastating blow to the industry. Viktor Lundvall investigates.