{"id":32322,"date":"2012-11-05T08:55:03","date_gmt":"2012-11-05T13:55:03","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=32322"},"modified":"2019-04-09T14:51:06","modified_gmt":"2019-04-09T18:51:06","slug":"romneys-hedge-fund-diverted-over-100-million-through-the-netherlands","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/11\/2012\/romneys-hedge-fund-diverted-over-100-million-through-the-netherlands.html","title":{"rendered":"Romney’s Hedge Fund Diverted Over $100 Million Through Netherlands Loophole"},"content":{"rendered":"

New York (HedgeCo.Net) – Dutch newspaper Volksrant reports<\/a> that Bain Capital, in which Republican presidential candidate Mitt Romney is a major shareholder and founder, has routed some 80 million euros ($102 million) in dividends through a tax loophole in the Netherlands via an investment in\u00a0Irish pharmaceutical company Warner Chilcott.<\/p>\n

Bain is a link in Romney’s extensive international web of trusts and holding companies. The paper reports that although\u00a0Romney\u00a0officially\u00a0left Bain in 1999, part of his severance package included the right to remain a shareholder and continue making investments. In 2004, he and his wife Ann Romney invested over a million (according to his tax returns) in Bain Capital Fund VIII, a Cayman Islands-based fund worth around $25.7 million. The hedge fund is a major shareholder at\u00a0Warner Chilcott.<\/p>\n

On March 10, 2011 Romney donated 19,799 shares of Warner Chilcott (with a market value of approximately $450,000) to a non-profit association run by his son,\u00a0Tyler Romney.\u00a0The\u00a0Dutch\u00a0paper also says that according to Romney’s tax returns, he and his wife in 2010-2011\u00a0received\u00a0more than two million dollars in dividends and held $5.5 million worth of shares in the hedge fund.<\/p>\n

Using a tax shelter called CRUT (charitable remainder unitrust)<\/a>\u00a0that was held by the Church of Latter Day Saints (Mormons), along\u00a0with foreign tax credits\u00a0and\u00a0deferred capital gains losses, Liberal news site The Daily Kos reports<\/a> that Mitt Romney was theoretically able to pay zero taxes (legally) every single year from 1996 to 2009.<\/p>\n

Bloomberg reports<\/a>: “Romney used the tax-exempt status of a charity — the Mormon Church, according to a\u00a02007 filing\u00a0— to defer taxes for more than 15 years.\u00a0At the same time he is benefiting, the trust will probably leave the church with less than what current law requires, according to tax returns.” Bloomberg got the information through a Freedom of Information Act request.<\/p>\n

Sources are also reporting that the United Automobile Workers (UAW) and Citizens for Responsibility and Ethics in Washington (CREW) have just charged Romney with hiding\u00a0between $15.3 to $111.5 million dollars\u00a0from the auto industry bailout in his wife Anne\u2019s \u201cblind\u201d trust to conceal the gain and reduce taxes on it.<\/p>\n

Alex Akesson
\nEditor for HedgeCo.net<\/a>
\nalex@hedgeco.net<\/a>
\nHedgeCo.Net<\/a> is a premier hedge fund database<\/a> and community for qualified and accredited investors only. Membership in HedgeCo.net<\/a> is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"

New York (HedgeCo.Net) – Dutch newspaper Volksrant reports that Bain Capital, in which Republican presidential candidate Mitt Romney is a major shareholder and founder, has routed some 80 million euros ($102 million) in dividends through a tax loophole in the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16044,3,16041],"tags":[],"class_list":["post-32322","post","type-post","status-publish","format-standard","hentry","category-hedge-fund-strategies-2","category-hedgeco-news","category-politics"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=32322"}],"version-history":[{"count":27,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32322\/revisions"}],"predecessor-version":[{"id":68785,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/32322\/revisions\/68785"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=32322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=32322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=32322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}