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View Diary: Romney Admits He Helped Foreigners Avoid US Taxes (7 comments)

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  •  Agree with VClib (1+ / 0-)
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    VClib

    If I as a non-US resident invest in a US company, the US company will pay US taxes on the profit made before I receive dividends.  I will be taxed on the dividends I receive in my own country - there is no justification for the IRS taking a second bite of the cherry.  

    The offshore vehicle's function is to share the business risk equally between investors of different jurisdictions without distortion through different tax codes.  There is no moral or legal imperative for the rest of the world to pay taxes in the US.

    If, on top of my own country's taxes, the US insisted on taxing my dividends as well, I simply would not invest.

    γνωθι σεαυτόν

    by halef on Thu Jul 19, 2012 at 12:06:59 AM PDT

    [ Parent ]

    •  halef - I actually wasn't stating any opinion (0+ / 0-)

      Thank you for your comment. I was just outlining the fact that how Bain Capital organized its partnerships is a universal standard in the industry. Some are trying to make this seem like Bain Capital is encouraging tax fraud. The reason for the structure is exactly as you stated. Investors who are not US tax payers don't owe US taxes. That doesn't seem so hard to understand.

      "let's talk about that"

      by VClib on Thu Jul 19, 2012 at 07:02:12 AM PDT

      [ Parent ]

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