By Earnest Jones  |  03-21-2017   News
Photo credit: Msur | Dreamstime

A huge portion of George Soros wealth comes from tax evasion. The 84-year-old billionaire took advantage of a loophole that allowed him to evade tax.

Soros deferred the taxes paid by clients. He then reinvested them in his fund.

By the end of 2013, Soros Fund Management had accumulated $13.3 billion through deferrals. The loophole was closed by Congress in 2008.

The hedge fund managers who used the loophole were ordered to pay the accumulated taxes by 2017.

This meant that Soros would be subject to a federal rate of 39.6 percent. The combined state and city levies totaled 12 percent ,there was also an additional 3.8 percent tax on investment income to pay for Obamacare.

After those rates are applied to Soros’s, his deferred income would create a tax bill of $6.7 billion.

The calculation is based on information that is available on public such as the Irish regulatory filings..

Soros declined to comment on the issue.

Soros transferred assets to Ireland before Congress closed the loophole. Ireland was seen as a country where the law was not that strict.

The filings show that Soros wealth came from delaying taxes and reinvesting the money in his fund. The tax deferral strategy was used by Many hedge fund managers.

The Congressional Joint Committee on Taxation estimated in 2008 that the new rules would generate about $25 billion in revenue for the U.S. Treasury over the following decade.

It included $8 billion in 2017. Soros started his career in New York City in the 1950s.

Back in 1992 his net worth was $1 billion. He made the money with a bet that the U.K. would be forced to devalue the pound.

Soros had the Quantum Endowment Fund which returned an average of 20 percent annually until 2011.

He converted Soros Fund Management into a family office investing solely on behalf of Soros and his family members and his Open Society foundations.

The Open Society foundations is a worldwide network of philanthropies that promotes democracy, the rule of law, and economic advancement. He started the Quantum Endowment Fund in 1973 with about $12 million from investors.

When he founded his firm the U.S. law did not prevent money managers from postponing the acceptance of client fees and letting the money remain in their funds. The money could grow in the fund without being taxed.

Hedge fund managers could avoid this obstacle by setting up similar offshore funds for investors who weren’t subject to U.S. taxes.

The fees and any investment gains, could grow without being taxed until the managers withdrew the money.

Deferring taxes is appreciated by hedge fund managers because most of their profits typically come from short-term trading and are subject to ordinary income taxes instead of the lower capital-gains rate

Companies based outside the U.S. that were subject to local taxes were exempted by the law. One week before the law was signed, Soros incorporated a new company in Ireland.

The company was known as Quantum Endowment Ireland. Quantum Endowment transferred the deferred fees along with certain other assets and liabilities to Quantum Endowment Ireland.

On October 2008 to the end of 2013, Quantum Ireland paid Irish taxes of $962 on $3,851 of net income after allocating $7.2 billion of operating income to investors.

Soros shut down Quantum Ireland last year. He then moved the deferred fees to a new entity incorporated in the Cayman Islands.

Soros has always wanted the fairer distribution of income. He may have found another way to defer paying taxes on fees.

Soros created a security that enabled partners in his firm to defer taxes and convert ordinary income into lower-taxed capital gain. This was after Congress placed restrictions on U.S. investors in offshore funds in 1986.

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Geemonster No. 1870 1490041981

I hope that piece of shit dies a destitute old cunt

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