2016 Postmortem
In reply to the discussion: So just WHY did the MittTwit refuse to release those elusive tax records??? PLEASE RESPOND. [View all]Princess Turandot
(4,787 posts)'Gave' not 'invested with'.
This tax avoidance vehicle worked something like this: Someone donates money to a qualifying charity, which in turn would agree to pay the donor an annuity based on the value of the donation until the donor died. Upon the death of the donor, the money would then completely belong to the charity. IIRC, the money donated was a deduction for the donor in the year it was made and the subsequent annuity was not subject to taxes.
I don't recall what the limit was on the donation under this vehicle but Romney is worth $100's of millions. This would not have been the bulk of his income.
BTW It's not only a Mormon church 'thing'. Before the gimmick was abolished, I used to get invitations from seemingly any charity I'd made a donation to, even $25, inviting me to consider this option.
As to why he didn't release his returns: my look-warm guess is that he took advantage of the 'Swiss Bank' amnesty program a few years back to declare that hidden income. If he had released the returns, someone would have wondered why they were all amended returns submitted in the same year.