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View Diary: Rolling Stone Magazine Exposes how Mitt Romney Dodged his Taxes (252 comments)

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  •  VClib, you don't know what you are talking about (7+ / 0-)

    How about THIS story that discusses Big 4 accounting firms getting FINED and their partners getting INDICTED for pushing tax dodges? (And it has a Mittens twist too!)

    http://www.bloomberg.com/...

    A few select quotes, just for your reading enjoyment:

    Willard Mitt Romney, was named after the chain’s founder, J. Willard Marriott, a friend of his father. He joined the company’s board in 1993, and has served on it for 11 of the past 19 years, including six as chairman of the audit committee.
    During Romney’s tenure as a Marriott director, the company repeatedly utilized complex tax-avoidance maneuvers, prompting at least two tangles with the Internal Revenue Service, records show. In 1994, while he headed the audit committee, Marriott used a tax shelter known to attorneys by its nickname: “Son of BOSS.”
    Now that the Romney-Marriott connection is clear, here is how illegal what Mittens did:
    A federal appeals court invalidated the maneuver in a 2009 ruling, siding with the U.S. Department of Justice, which called Marriott’s transaction and attempted tax benefits “fictitious,” “artificial,” “spectral,” an “illusion” and a “scheme.” Marriott had argued the plan predated government efforts to close such shelters.

    Employing another strategy, Marriott legally avoided hundreds of millions of dollars in income taxes thanks to a federal tax-credit program criticized and allowed to expire by Congress. Marriott has also shifted profits to a Luxembourg shell company. During Romney’s years on the board, Marriott’s effective tax rate dipped as low as 6.8 percent, compared with the federal corporate statutory rate of 35 percent.

    And HERE is where the accountants got NAILED:
    “This is pretty much the poster child for those classic early tax shelters: you use a hyper-technical reading of the tax law to obtain what are, by any standard, unwarranted tax benefits,” said Robert Willens, a tax-accounting analyst in New York who advises investors.
    A version of that same strategy got others in bigger trouble. Partners at KPMG LLP counseled their clients on Son of BOSS structures, leading to a $456 million deferred prosecution agreement with the Department of Justice and causing the indictment of several former partners there, along with partners at Ernst & Young LLP. (The nickname is derived from an acronym for an earlier version of the shelter -- Bond Options Sales Strategy.)
    Last time I looked, KPMG and E & Y were TWO of the Big 4: PriceWaterhouseCoopers, Deloitte, KPMG and Ernst & Young.

    But we all know accountants NEVER do anything that might be illegal. Just indictable.

    "The battle, sir, is not to the strong alone; it is to the vigilant, the active, the brave." -- Patrick Henry November 6, 2012 MA-4 I am voting for my friends Barry, Liz and Joe (Obama, Warren and Kennedy)

    by BornDuringWWII on Sat Oct 13, 2012 at 11:00:06 PM PDT

    [ Parent ]

    •  Right. They're not paid to keep it "legal" (1+ / 0-)
      Recommended by:
      JG in MD

      they're paid to keep it buried so deep, so knotted up in loopholes, that it would take a team of legal experts/accountants to find it.

      Beyond that, it's the same argument thugs and criminals throughout history have used to justify their criminal behavior "well, it was legal." Yeah, like the Nuremberg Laws, right? Like slavery in the US. Like apartheid in South Africa.

      All of it, perfectly "legal". At the time.

      Hate to see what would be "legal" 2 months into a Rommey administration! And that's exactly the point: The only reason this asswipe is seeking office is so that he has more control over the laws governing what he does with his money.

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