A number of well-known companies, including AA, Birds Eye and, recently, Alliance Boots, have recently been bought by private equity firms.
Unions have argued that private equity firms pay too little tax
Last week the head of one UK private equity group, SVG's Nick Ferguson, said the claims may have some justification, when he admitted that some of those running and investing in private equity were paying tax at a lower level than cleaners.
Labour MP George Mudie, a member of the committee, said that such an admittance meant the Chancellor was "bound to do something about it".
He claimed that individuals with "money coming out of their ears" were using the system to reduce their tax payments.
And he complained that information supplied to the committee had been "bland".
Documents submitted said that more than £80bn have been invested in about 29,500 firms since 1983.
It amazes me how over the past 10 years the Government claims that the gap between the rich and poor is decreasing yet the average family is paying more in direct and indirect taxes (e.g. VAT) then they receive in benefits and tax brakes. It’s completely ridiculous that the fat cats in the square mile get away with not paying tax yet the average family is bombarded with taxes even after they die when the Government comes along and takes 40% of an estate worth over £250,000.