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Just read a new article in a local Dutch newspaper and a financial investigative journalist did research on the Dutch [Antilles] tax evasion route to learn how Bain Capital stashed its millions and avoided multiple taxes on corporations and stock dividends. I have to use Google to translate some of the revealing facts. I searched for the Internet, but this story could not be found elsewhere or in English. See Dutch tax evasion route here below …
Read also article in The Guardian – A new age of financial transparency could help claw back $3.1 trillion of unpaid tax
A roll call of corporate rogues who are milking the country
LONDON, UK (The Guardian) Oct. 30, 2012 – The scale of tax avoidance by high-street brand multinationals has now become clear, in no small part thanks to campaigning groups such as UK Uncut. Asda, Google, Apple, eBay, Ikea, Starbucks, Vodafone: all pay minimal tax on massive UK revenues, mostly by diverting profits earned in Britain to their parent companies, or lower tax jurisdictions via royalty and service payments or transfer pricing.
Four US companies – Amazon, Facebook, Google and Starbucks – have paid just £30m tax on sales of £3.1bn over the last four years, according to a Guardian analysis. Apple is estimated to have avoided over £550m in tax on more than £2bn worth of underlying profits in Britain by channelling business through Ireland, according to a Sunday Times analysis, while Starbucks has paid no corporation tax in Britain for the last three years.
Romney and Bain Capital Use Dutch Tax Haven to Dodge Tax and translation [EN]
AMSTERDAM (Volkskrant) Nov. 5, 2012 – In the United States, Mitt Romney has been under fire for months from the media and his political opponents of the Democratic Party on the limited amount of his tax payments. The criticism forced Romney in September to reveal his tax return and the amount of taxes paid by him. It was already known that he benefits from tax evasion through ingenious shortcuts through the Cayman Islands, Bermuda and Luxembourg. Netherlands was not on that list yet. Wrongly, as it turns out.
Netherlands came in the news recently for an attractive tax junction and a shortcut for tax evasion of U.S. coffee chain Starbucks, which in England created great indignation.
Profitmaking and dodging corporate taxes
Presidential candidate Mitt Romney benefiting from the private equity fund Bain Capital from an advantageous tax route that runs through the Netherlands. Netherlands for the American Bain, which Romney was established as a link in his extensive international web of trusts and holding companies.
Through its investment in 2004 acquired Irish pharmaceutical company Warner Chilcott via the Netherlands to run, know Bain dividends and capital gains to avoid. Since the shares in the Netherlands are housed, was approximately $ 389 million (303 million) in dividends Bain and sold for over $ 334 million (260 million euros) in shares.
This shows by Follow the Money for the Volkskrant examined filings with the U.S. Securities and Exchange Commission (SEC), Romneys tax returns, the U.S. tech blog Gawker revealed confidential documents from Bain, and data from the Dutch Chamber of Commerce.
Steve Pagliuca, Director, is a Managing Director at Bain Capital Partners, LLC. Mr. Pagliuca is also a Managing Partner and an Owner of the Boston Celtics Basketball franchise. Mr. Pagliuca joined Bain & Company in 1982 and founded the Information Partners private equity fund for Bain Capital in 1989. Mr. Pagliuca has also worked as a senior accountant and international tax specialist for Peat Marwick Mitchell & Company in the Netherlands. Currently, he serves on the Board of Directors of Burger King, Gartner Group, and ProSiebenSat1 Media AG. He is serving as the Chairman for Massachusetts Society for the Prevention of Cruelty to Children, and the Duke University Trinity Board of Advisors. He is also a trustee of Bain Capital Children’s Charity.
An article with translation has just been posted and a smart summary …
Romney uses tax heaven Netherlands to evade taxes
(Blog ATS) – In a nutshell:
- The Netherlands are one of the fiscal back doors Romney has used to evade taxes.
- The private equity fund, Bain Capital, Romney participates in has evaded 80 million euro dividend taxes.
- Romney, according to the article, created Bain Capital as part of one of many such funds in a web of different funds which can be traced back to the Cayman Islands, Bermuda and Luxemburg.
- Even though Romney officially quit Bain in 1999, he is still allowed to participate in the fund as a deal he struck upon his departure. He, along with his wife Ann Romney, have invested in Bain Capital Fund VIII which is located on the Cayman Islands and has an active interest in Warner Chilcott.
- From the 37,5 million shares Bain has in Warner Chilcott, 25,7 million shares are registered in Bain Capital Fund VIII.
- Romney declares in his public financial disclosure report his stake in Bain Capital Fund VIII to be worth more than 1 million $.
- From both his and his wife’s tax returns it is estimated that from 2010 to 2011 they received 2.05 million $ in dividend form the fund. Their shares, during the same period, increased in value to the tune of 5.5 million $
- Romney donated, on March 10th 2011, 19.799 shares (worth 450,000 dollars) form Warner Chilcott to a non-profit organization registered under the name of his son, The Tyler Foundation. He not only evaded taxes this way but gifts can be deducted from taxes in the States.
