Skip to content
Subscriber Only

Treasury Is Weighing Action on Hedge-Fund Tax ‘Loophole’

The U.S. Treasury Department said it’s considering ways to end a “loophole” that allows hedge-fund managers to avoid taxes by routing their investments through an insurance company in low-tax countries like Bermuda.

The Treasury, in an Aug. 9 letter obtained by Bloomberg News today, told Senate Finance Committee Chairman Ron Wyden that it’s concerned about such arrangements and is weighing legislative and administrative responses.