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Thu Feb 21, 2013, 01:30 PM

 

Paulson Leads Funds to Bermuda Tax Dodge Aiding Billionaires

Source: Bloomberg News

Last year, about $450 million belonging to top executives at billionaire hedge fund manager John Paulson’s New York firm took a quick round trip to Bermuda.

In April, the executives sent the money to a reinsurance company that they’d set up on the island 650 miles off the North Carolina coast. By June, the Bermuda company, which has no employees and sells far less reinsurance than the industry norm, had sent all the cash back to New York, to be invested in Paulson & Co. funds. By recycling the funds through Bermuda-based Pacre Ltd., the Paulson executives are positioned to legally exploit a little-known tax loophole, reduce their personal income taxes and delay paying the bill for years.

“These types of reinsurance companies are permitting U.S. taxpayers to defer -- indefinitely -- U.S. tax,” said David S. Miller, a tax lawyer at Cadwalader Wickersham & Taft LLP. For some, he said, it’s “an unjustified benefit.”

A decade after the U.S. Internal Revenue Service threatened to crack down on what it said were abuses by hedge-fund backed reinsurers, more high-profile money managers are setting up shop in tax havens. Paulson, SAC Capital Advisors LP’s Steven A. Cohen and Third Point LLC’s Daniel Loeb have started Bermuda reinsurance companies since 2011, following a similar Cayman Islands venture by Greenlight Capital Inc.’s David Einhorn. Because reinsurers, which sell coverage to other insurers, manage large pools of capital, they’re a handy way to funnel a U.S. hedge fund investment through a tax haven.

more at link.....

Read more: http://www.bloomberg.com/news/2013-02-19/paulson-leads-funds-to-bermuda-tax-dodge-aiding-billionaires.html



This is a good read. I'm sick of calling criminal activity "loopholes". We need Elizabeth Warren on this pronto!! Calling LIZ!!!!!

9 replies, 2076 views

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Reply Paulson Leads Funds to Bermuda Tax Dodge Aiding Billionaires (Original post)
SugarShack Feb 2013 OP
AnotherMcIntosh Feb 2013 #1
iandhr Feb 2013 #2
Mnemosyne Feb 2013 #3
benld74 Feb 2013 #4
They_Live Feb 2013 #7
DallasNE Feb 2013 #5
formercia Feb 2013 #6
SugarShack Feb 2013 #8
SugarShack Feb 2013 #9

Response to SugarShack (Original post)

Thu Feb 21, 2013, 01:38 PM

1. How soon will we hear the defense that "It is all perfectly legal"? No, it's not. It's a fictional

 

activity represented by false documents solely for the purpose of evading taxes.

No one actually sent money to Bermuda. This was simply a fictional paper transaction. Even if someone had actually carried a suitcase full of thousand-dollar bills to Bermuda and then back again, such a transaction still would not have had any purpose other than to evade taxes.

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Response to SugarShack (Original post)

Thu Feb 21, 2013, 01:50 PM

2. I AM SHOCKED SHOCKED to find that gambling is going on here.

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Response to iandhr (Reply #2)

Thu Feb 21, 2013, 02:03 PM

3. lol

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Response to SugarShack (Original post)

Thu Feb 21, 2013, 02:39 PM

4. THIS is what CONGRESS/SENATE needs to S-T-O-P IF they want REVENUE streams,,,,,

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Response to benld74 (Reply #4)

Thu Feb 21, 2013, 05:15 PM

7. yes!

one of several things that needs to be stopped.

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Response to SugarShack (Original post)

Thu Feb 21, 2013, 04:51 PM

5. It's Time The Fortune 500 Companies Have Their Tax Information

Posted on a common web site that lists the company name, place on the list, total revenue, before taxes profits, income tax liability, tax credits, net taxes paid and effective tax rate. One time items would be footnoted in a link.

Tax credits and effective tax rate could prove interesting.

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Response to SugarShack (Original post)

Thu Feb 21, 2013, 05:14 PM

6. Money Laundering and Conspiracy

RICO

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Response to SugarShack (Original post)

Thu Feb 21, 2013, 08:16 PM

8. Get this to Liz Warren!!!

 

and keep this kicked!

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Response to SugarShack (Original post)

Fri Feb 22, 2013, 09:18 AM

9. Why was this not part of MSM yesterday???

 

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