A cache of internal Bain Capital documents released Thursday provides new information about the operations and holdings of the financial company founded by Mitt Romney, including details of investments in the Cayman Islands and other tax havens.
More than 900 pages of financial statements, investor reports and other documents released by Gawker.com also contain new details of investments Romney holds in a variety of Bain funds.
Although some Bain investments are known publicly, many specifics have remained secret. Citing his firm's non-disclosure policy, Romney has declined to list the underlying assets of the Bain funds he holds in financial disclosure reports required of all federal candidates.
Some of the information contained in the newly released documents prompted University of Colorado law professor Victor Fleischer to cry foul late Thursday, saying some Bain executives avoided taxes in at least one of the funds in which Romney holds an investment, Bain Capital Fund VII.
In his blog, Fleischer highlighted a technique Bain and other private equity executives have used to convert management fees into capital gains, which would be taxed at 15 percent. That rate is less than half the tax rate that would be applied to the fees if they were treated as ordinary income.
Romney's financial disclosure shows he had "over $1 million" invested in Bain Capital Fund VII.
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