Author(s)

Wenshu Wang

Corresponding Author

Wenshu Wang

ABSTRACT

The main source of income for private equity investment funds comes from the price surplus after the sale of equity. Due to the fact that private equity funds are not publicly disclosed, there is no need to disclose relevant information about the invested enterprises. Although the return on investment is high, the investment risk is also very high. This article further explores the tax risks and countermeasures of private equity funds. Develop unified standards with floating space for each link and step in the operation process of private equity funds. When disputes arise due to trading issues, clear legal provisions can be followed to avoid the phenomenon of mutual blame. Effective internal management is a delicate issue in the management of private equity funds. If poorly managed, it is highly likely to cause serious economic losses. If there is a gap and mutual distrust between investors and managers, it may prevent the development of private equity funds and ultimately lead to bankruptcy. By analyzing private equity funds in China, improving the system of private equity funds and regulating their operation is of great value for the development of private equity funds and the development of the Chinese economy.

KEYWORDS

Private equity funds; Tax risks; Response measures