The IRS guidance that permits zero valuation of profits interests applies only to the initial transfer of the profits interest from the Bain fund partnership to the manager.
Under the zero-10 policy, which sees tax on corporate profits cut from zero for some firms and 10% for others, these companies would no longer make a direct contribution to Jersey.
Competition between banks will tend to bring the lending and borrowing rates closer together, theoretically squeezing bank profits to zero in the ideal case of a perfectly competitive market.
