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Caution is the key to any proposed reform of tax regulations relating to private equity organisations and people with non-domicile or non-resident status, according to a leading tax expert.
John Whiting of PricewaterhouseCoopers believes changes need to be considered with the utmost care before they are initiated, so as not to do serious damage to the UK's economy.
'We need a proper debate on the subject,' he said.
His comments came in response to negative remarks made by Liberal Democrat deputy leader Vincent Cable about tax perks enjoyed by the country's 'super rich'.
Mr Whiting went on to say: 'We're talking about mobile wealth creators here. The non-domiciled, for instance, make a significant contribution to the British economy - but if they were made to pay tax, many of them could easily take their business elsewhere.'
Like people with non-domicile or non-resident status, private equity is also potentially peripatetic, and reforms could encourage an unwanted exodus.
'One of the main wealth creators in the UK is the City,' said John, 'and the fact that the country is a leader in private equity is a great attraction for the City. The message is, I suppose, don't scare off the goose that could lay a golden egg'.
In a key-note speech by at his party's autumn conference, Vincent Cable warned delegates about the 'highly fallible' UK economy.
He hit out at the number of the non-domiciled having 'shot up' and the 'reality of modern Britain… where the poor are hounded for small over-payments of benefit and the super-rich can pay no tax'.
The former economist became the latest prominent figure in recent days to raise the much-debated issue of tax relief for the buyout sector and the non-domiciled.
Last week, CBI director-general Richard Lambert and trade body the British Private Equity and Venture Capital Association both publicly commented on the tax arrangements of the buyout sector. Lambert also recommended greater tax accountability for the non-domiciled.
Dr Cable said: 'Last year we debated with some passion the issue of whether those on high incomes should pay 40 or 50p top rate tax,' said Dr Cable.
'Private equity operators pay as little as 10p in the pound, not 40 or 50 - and not just them: thanks to a capital gains tax-relief granted by Gordon Brown, the outgoing chairman of British Land [Sir John Ritblat] has recently pocketed £18 million from his property dealings.
He continued: 'Another expensive gift to the wealthy is non-domicile resident status (sic). Beneficiaries pay no UK tax on their global income, including pay and capital gains earned here and shipped out via off-shore trusts'.
The Lib Dem deputy leader then attacked the Treasury for 'suppressing' the findings of a 2002 enquiry into the 'abuses of non-dom status'.
He remarked: 'What we do know is that the number of non-doms has shot up from 80,000 to 200,000 in five years, while the average amount of tax they pay has plummeted.
'Billions of tax revenue is disappearing, while low-paid workers and the middle class are being taxed to the hilt.'
The majority of the British public — more than 80% - feel the gap in earnings between rich and poor is too large, revealed Dr Cable, citing the results of a YouGov poll carried out on behalf of the Liberal Democrats (incorrectly attributed by The Times to the Treasury).
