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5/01/2015 12:00 pm  #1


George Soros reportedly could face up to $7B tax bill, after delaying

And we thought that a  $ 3 billion tax bill was bad!

George Soros reportedly could face up to $7B tax bill, after delaying payment for years

http://www.foxnews.com/politics/2015/05/01/george-soros-reportedly-could-face-up-to-7b-tax-bill-after-delaying-
payment-for/

George Soros may soon face a monumental tax bill -- of nearly $7 billion -- after years of playing hard-to-get with the IRS. Despite Soros having advocated for higher taxes on the wealthy, the liberal billionaire reportedly has delayed paying his own for years thanks to a loophole in U.S. law. That loophole was closed by Congress in 2008. But before that, Bloomberg reports, Soros used it to defer taxes on client fees. Instead, he reinvested them in his own fund, and they grew tax-free. Bloomberg, citing Irish regulatory filings, reported that Soros has made $13.3 billion in this way. Factoring in the various tax rates that would apply, one tax expert estimated this would leave Soros with a roughly $6.7 billion bill.

Last edited by Common Sense (5/01/2015 12:00 pm)


 “We hold these truths to be self-evident,”  former vice president Biden said during a campaign event in Texas on Monday. "All men and women created by — you know, you know, the thing.”

 
 

5/01/2015 12:20 pm  #2


Re: George Soros reportedly could face up to $7B tax bill, after delaying

If he broke the law, he should pay it.  If there is a loophole that allows it, then it needs to be plugged.

Funny thing about 'tax experts' is that while one could say you that you owe 'x' amount of dollars, another will tell you that you are eligibile for a refund. 

Been down that highway.

Last edited by Just Fred (5/01/2015 2:12 pm)

 

5/01/2015 1:04 pm  #3


Re: George Soros reportedly could face up to $7B tax bill, after delaying

A little less biased than Fox "news" giddy evisceration of Soro's tax bill from The Street:


George Soros May Finally Get That Huge Tax Bill He's Always Wanted


NEW YORK ( TheStreet) --  George Soros, a self-made billionaire investor who has made calls in the past for higher taxes on wealthy Americans, may soon be getting his wish. According to Bloomberg, years of deferred income could leave him owing $6.7 billion in taxes.

It appears that Soros has put to use a loophole that has allowed him to defer taxes on fees paid by his clients and reinvest them in his fund. Irish regulatory filings reveal that the investor, through his firm Soros Fund Management, has amassed $13.3 billion using this mechanism.

How? In 2008, George W. Bush signed U.S. legislation closing a loophole that allowed hedge fund managers to set up parallel offshore funds as a way to defer taxes. The Congressional Joint Committee on Taxation estimated in 2008 that the new rules would generate roughly $25 billion in revenue, including $8 billion in 2017 -- the deadline for managers to pay accumulated taxes.

Just before all of this took place, Soros incorporated a new company in Ireland called Quantum Endowment Ireland. His Quantum Endowment transferred delayed fees and certain other assets to the new company.

Quantum Endowment Ireland is subject to a 25% corporate tax, in theory; however, its status as an Irish Section 110 company allows it to issue profit participation note and pay out earnings as distributions to note holders. In other words, it hasn't had to pay much.

Bloomberg reports that from October 2008 through the end of 2013, Quantum Ireland paid taxes of $962 on $3,851 of net income. It allocated $7.2 billion of operating income to investors as distributions on profit participation notes, most of which were held by Soros' tax-exempt Open Society foundations. In 2014, Soros shut down Quantum Ireland and moved deferred fees to a new entity in the Cayman Islands.

This revelation is in contrast with Soros' public stance on taxes for the wealthy.

In December 2012, Soros joined a group of more than 20 wealthy individuals, including Warren Buffett and Bill Gates, that issued a joint statement asking Congress to lower the U.S. estate tax's per-person exemption to $2 million from $5.12 million and raise the top rate to more than 45%.

Earlier the same year, Soros told CNN's Fareed Zakaria that he thought he should pay more in taxes. When asked whether he supported President Barack Obama's proposal to increase taxes on the wealthy, he said, "Yes, I very much do so, because it's the big boom, the super-bubble that resulted in a great increase in inequality. Not only do we have the after effect where we have slow growth one way or the other, but if you have better distribution of income, the average American will be better off."

When it comes to building wealth, Soros is about as self-made as it gets. He was born in Budapest and studied in London before moving to New York and heading to Wall Street. Soros started his own hedge fund with about $12 million and has transformed it into the multi-billion-dollar operation it is today.

The billionaire is perhaps best known for "breaking the bank of England," a moniker he earned in 1992 after netting over one billion dollars on the devaluation of the British pound. He is currently ranked 29th on the Forbes billionaire list and with an estimated net worth of $24.2 billion.

Soros stopped managing clients' money in 2011, however, Soros Fund Management is still alive and well. According to data from iBillionaire, the fund's public equity portfolio posted a 9.45% gain in 2014 alone. As of its latest regulatory holdings disclosure, Soros Fund Management's top holdings are Alibaba (BABA) , YPF (YPF) and Teva Pharmaceuticals (TEVA). Its portfolio has an average market cap of $31 billion and 1.1% yield.

Last edited by Rongone (5/01/2015 1:05 pm)

 

5/01/2015 1:17 pm  #4


Re: George Soros reportedly could face up to $7B tax bill, after delaying

If he owes taxes, he should pay them.
George Soros' tax situation is something about which I am neither hot nor cold.
 


We live in a time in which decent and otherwise sensible people are surrendering too easily to the hectoring of morons or extremists. 
 

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