According to emerging news reports, Romney has a vast amount of wealth invested in funds through Bain Capital LLC. This powerhouse is one of the offshore tax havens often used to help lower the 2012 taxes. Several of the Bain funds have connections offshore that are allowing the financial elite to take advantage of tax breaks.
These news sources are interested in dissecting Romney’s tax returns to see how his use of offshore strategies has allowed him to avoid taxes. Investments by Romney and others in Bain funds, have money scattered from Delaware, to Bermuda, the Cayman Islands, Ireland and Hong Kong, according to sources at Reuters News Group.
The question is if these things add up to the charges of tax evasion or avoidance of taxes. While corporations do not pay taxes on the income unless the money is repatriated, individuals do. The findings of this investigation could have a negative impact on Romney’s campaign.
There are limited numbers of ways to shelter one’s income offshore and these ways are generally transparent as offshore income sheltering. The IRS has become very skilled at locating these attempts and these people are generally required to pay the taxes on the earnings.
If indeed, the investments are listed on Romney’s tax return, then they cannot be the tax haven that others once found in offshore investments. While the tax code is complex and Bain may have found a structure allowing some sheltered income, that structure should not be included on the Romney’ or anyone else’s tax return.
- A Candidate’s Offshore Tax Havens (2009tax.org)
- Millions In Cayman Islands Investment Funds For Romney (2010taxes.org)