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November Surprise? Dutch paper reports that Romney evaded up to $100 million in taxes
01:10 pm


This is raw via Google Translate, but the gist of this is quite clear.

Jesse Frederik writes in Volkskrant:

The tax loopholes of Mitt Romney also run through the Netherlands. The private equity fund Bain Capital, which presidential candidate participates, via the Dutch would route some 80 million euros in dividends have dodged.

Presidential candidate Mitt Romney benefiting from the private equity fund Bain Capital from an advantageous tax route that runs through the Netherlands. Netherlands for the American Bain, which Romney was established as a link in his extensive international web of trusts and holding companies.

Through its investment in 2004 acquired Irish pharmaceutical company Warner Chilcott via the Netherlands to run, know Bain dividends and capital gains to avoid. Since the shares in the Netherlands are housed, was approximately $ 389 million (303 million) in dividends Bain and sold for over $ 334 million (260 million euros) in shares.

This shows by Follow the Money for the Volkskrant examined filings with the U.S. Securities and Exchange Commission (SEC), Romneys tax returns, the U.S. tech blog Gawker revealed confidential documents from Bain, and data from the Dutch Chamber of Commerce.

According to tax Jos Peters, who advise large private equity firms occurs, Bain with the Dutch route about 80 million dividend managed to dodge. “Bain also saves a lot of Irish capital gains tax if the shares are sold,” said Peters. Bain nor the Romney campaign has responded to repeated requests for a comprehensive response.

While Romney Bain in 1999 as an active investor left, he was there as part of his severance scheme still participate. So he invested in 2004 with his wife Ann Romney also competed in the Bain Capital Fund VIII. This in the Cayman Islands based fund has a significant interest in Warner Chilcott. Of the 37.5 million shares that Warner Chilcott Bain in September 2010 in its possession, there are 25.7 million in the Bain Capital Fund VIII.

Romney, in his’ public financial disclosure report “that his shares in the Bain Capital Fund VIII ‘over a million’ worth. From the tax returns of Romney and his wife that the couple in 2010 and 2011, more than $ 2.05 million in dividends from the fund received. Their shares rose in the same period by more than $ 5.5 million in value.

Romney receives a significant portion of the proceeds from the Bain Capital Fund VIII in the form of shares. On March 10, 2011 Romney donated 19,799 shares of Warner Chilcott (with a market value of approximately $ 450,000) to a non-profit association of his son, The Tyler Foundation. This avoided Romney taxation in the United States. Gifts of shares to designated non-profit organizations are excluded from capital gains tax. Moreover, the gift tax deductible.

Since 2010, Bain Capital has its shares in Warner Chilcott housed in a Dutch private company. From the beginning, there are significant benefits to Bain Capital occurred. Warner Chilcott paid from August 2010 389 million dollars in dividends. Bain sold in these years for more than $ 334 million equity Warner Chilcott.

By making use of the so-called participation exemption in the Netherlands and Luxembourg do Bain dividends and capital gains to avoid the proceeds of his shares safely bring in tax haven Cayman Islands. The participation exemption means that the profit from a shareholding of more than 5 percent is not taxed in the Netherlands. Netherlands is partly why an attractive location for holding companies of multinationals and financial funds. “We are world champions participation exemption ‘, says Jos Peters, tax specialist at Merlyn.

In the United States, Mitt Romney for months under fire from the media and his political opponents of the Democratic Party on the limited amount of his tax payments. The criticism forced Romney in September about the tax paid by him to reveal. It was already known that he benefits from tax ingenious shortcuts through the Cayman Islands, Bermuda and Luxembourg.

Netherlands came in that list not yet. Wrongly, it turns out. Netherlands came rather as attractive tax junction in the news around include the shortcut tax of U.S. coffee chain Starbucks, which in England was great indignation.

Spread far and wide, won’t you?

Currently zooming up the charts at reddit/r/politics

Posted by Richard Metzger
01:10 pm



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