Paul L. Caron
Dean
Pepperdine Caruso
School of Law
Celebrity Tax Lore
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That’s Not a Tax Bill, THIS is a Tax Bill: Crocodile Dundee Star Paul Hogan Hit with £8m by Taxman
Daily Mail, That's Not a Tax Bill, THIS is a Tax Bill: Crocodile Dundee Star Paul Hogan Hit with £8m in Charges: Crocodile Dundee star Paul Hogan has been hit with an £8 million bill by the Australian taxman. He is accused of evading tax on more than £20 million in undeclared income. But in a American…
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German Millionaires Say Nein to Gates-Buffett Giving Pledge
Following up on my post earlier this month, Pledge to Give Away Half Gains Billionaire Adherents (Aug. 5, 2010): German Millionaires Criticize Gates' 'Giving Pledge': Germany's super-rich have rejected an invitation by Bill Gates and Warren Buffett to join their 'Giving Pledge' to give away most of their fortune. The pledge has been criticized in…
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Tiger Woods May Skip Ryder Cup Because of British Tax Law
Following up on last month's post, Usain Bolt Runs From the British Tax Man: Tiger Woos reportedly is considering skipping the Ryder Cup in October in England because he would face a 1 million pound ($1.57 million) tax bill under new British rules taxing foreign athletes not only on their prize money but also on…
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District Court Issues Order in Snipes Case
Following the 11th Circuit's affirmance last month of actor Wesley Snipes' tax conviction and sentence, the district court yesterday issued this order: On July 16, 2010, the Eleventh Circuit Court of Appeals issued an opinion affirming this Court’s judgment of conviction and sentence against Defendant Wesley Trent Snipes. … Since the date of the Circuit Court’s…
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Tax Consequences of A-Rod’s 600th Home Run
Wall Street Journal, A-Rod’s Home Run Ball: A Tax Headache for the Record Books?, by Laura Saunders: Will A-Rod’s 600th homer score him a huge federal tax bill as well as a line in the record books? Probably not unless he sells it, says tax expert Richard Lipton of Baker & McKenzie in Chicago. New York…
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NY Times: Billionaire Brothers Long Suspected of Tax Evasion
New York Times, Billionaire Brothers Long Suspected of Tax Evasion, by Edward Wyatt: Sam and Charles Wyly have long cultivated an image as active philanthropists, funneling millions of dollars to arts groups, colleges, literacy programs and animal shelters. But government investigators have suspected for years that the billionaires from Dallas had a less community-minded goal:…
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Chris Tucker Owes $15.2m in Taxes
TMZ reports that actor Chris Tucker (Rush Hour) owes back taxes of $11.6 million to the IRS and $3.6 million to California, caused in part by bad real estate investments. Other celebrity tax troubles: Wes Bentley, actor (American Beauty), $125,617 lRS tax lien, $78,266 California tax lien Dave Bing, Detroit mayor, former NBA star, $103,627 Michigan tax…
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Sen. Kerry & Yacht-Gate: Learned Hand’s Perspective
Following up on my prior posts: Sen. John Kerry Skips Town on Sails Tax (July 23, 2010) Sen. Kerry Sails Around the Tax Issue (July 27, 2010) Sen. Kerry Abandons (Tax-Dodge) Ship, Agrees to Pay $500k MA Tax on Yacht (July 28, 2010) Boston Globe op-ed, Keelhauling Kerry, by Jeff Jacoby: No one is ever…
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KKR: Living the Tax Dream You Can’t
Following up on my prior post, KKR’s Tax Motivation in Going Public (July 15, 2010): Fortune: KKR: Living the Tax Dream You Can’t, by Allan Sloan: [KKR] has set up a corporate subsidiary that can increase the stated value of its assets based on the gain realized by insiders who sell some or all of their stake…
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More on George Steinbrenner and the Estate Tax
Following up on my prior post, By Dying in 2010, Did George Steinbrenner Save His Family $600m in Estate Tax? (July 13, 2010): New York Post, The Boss' Will Power: Nifty Move Gives Trust Option Year on Taxes: Where there's a will, there's a way — to keep George Steinbrenner's millions all in the family.…
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Sen. Kerry Abandons (Tax-Dodge) Ship, Agrees to Pay $500k MA Tax on Yacht
Following up on my prior posts: Sen. John Kerry Skips Town on Sails Tax (July 23, 2010) Sen. Kerry Sails Around the Tax Issue (July 27, 2010) Sen. Kerry announced yesterday that he would pay over $500,000 in Massachusetts taxes on his $7 million yacht ($437,500 in state use tax, $70,000 in annual state excise tax): "We’ve reached out to…
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IRS Pursues Billionaire McCombs for $45m in Variable Prepaid Forward Contracts Case
Following up on last week's post, Tax Court Rejects Billionaire Anschutz's Use of Variable Prepaid Forward Contracts to Avoid $144m Capital Gain: Forbes, IRS Demands $45 Million From Billionaire McCombs, by Janet Novack: The IRS is demanding $45 million in back 2002 and 2003 taxes from San Antonio billionaire Billy Joe “Red” McCombs for his use of…
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Sen. John Kerry Skips Town on Sails Tax
Boston Herald, Sen. John Kerry Skips Town on Sails Tax: Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I. Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior,…
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Tax Court Rejects Billionaire Anschutz’s Use of Variable Prepaid Forward Contracts to Avoid $144m Capital Gain
The Tax Court yesterday disallowed billionaire Philip Anschutz's use of variable prepaid forward contracts with Donaldson, Lufkin & Jenrette to avoid $144 million in capital gains taxes. Anschutz Co. v. Commissioner, 135 T.C. No. 5 (July 22, 2010). Bloomberg, Billionaire Anschutz Loses Capital Gains Ruling Over $144 Million Tax Bill Forbes, Billionaire Anschutz Loses Big Tax Case Wall…
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‘MoFo’ Lawyers
Above the Law noted this funny Jay Leno bit this week on Morrison & Foerster, the nation’s 16th largest law firm with over 1,000 attorneys that is based in San Francisco and has 15 other offices. Advance the clip to the 2:12 mark: Leno is not making this up — although “MoFo” is slang for motherf*****,…
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What Is One of My Classes Worth? $8,026.33
As regular readers of this blog know, I use clickers in my tax classes (Taking Back the Law School Classroom: Using Technology to Foster Active Student Learning, 54 J. Legal Educ. 551 (2004)) and take the students' performance into account in the final grade. This places a premium on class attendance. I thought that by now…
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11th Circuit Affirms Wesley Snipes’ Tax Conviction and Sentence
United States v. Snipes, No. 08-12402 (11th Cir. July 16, 2010): Defendant Wesley Trent Snipes appeals from his criminal convictions, after a jury trial, on three counts of willful failure to file individual federal income tax returns for calendar years 1999, 2000, and 2001, in violation of 26 U.S.C. § 7203. Snipes alleges that the trial…
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007’s 1040 Problem: ‘Goldfinger’ Raid Implicates Sean Connery in Tax Fraud
ABA Journal, ‘Goldfinger’ Raid Conducted on Law Firm in Possible Tax Case Against James Bond Star Sean Connery: Authorities have conducted a raid, under the code name Goldfinger, on a Spanish law firm as part of an ongoing tax probe of Sean Connery and his wife. CBS News, Sean Connery Tax Fraud Investigation Involves Land…
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Fleischer: KKR’s Tax Motivation in Going Public
KKR began trading on the NYSE today, and Vic Fleischer (Colorado) blogs the tax motivations behind the decision to take the firm public: [T]he senior principals (Kravis et al) will be able to sell their shares to the public or redeem their shares with the newly-public holding company. Under current law, Kravis will be taxed at…
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WSJ: By Dying in 2010, Did George Steinbrenner Save His Family $600m in Estate Tax?
Wall Street Journal, How Steinbrenner Saved His Heirs a $600 Million Tax Bill: Did George Steinbrenner save his heirs millions by dying in 2010? Forbes recently estimated the Yankees owner’s net worth at $1.1 billion, largely from the YES network. The New York Yankees, which he acquired in 1973 for $10 million, are now worth…
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Usain Bolt Runs From the Tax Man
From Sports Illustrated: Usain Bolt won’t compete at next month’s Crystal Palace Diamond League meeting because of British tax rules. Speaking at a news conference ahead of Friday’s Areva meeting scheduled at the Stade de France, the Olympic and world champion in the 100 and 200 meters said he decided to skip the event after…
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More on the Tax Advantages of LeBron James’ Move to Miami
Following up on Thursday's post, The Impact of Taxes on LeBron James' Decision: Weekend Wall Street Journal editorial, LeBron's Tax Holiday; Another Reason to Play in Miami: We come not to praise or bury LeBron James, but only to note that by moving to Miami he's going to save a bundle on taxes. … Florida has…
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The Impact of Taxes on Lebron James’ Decision
Business & Media Institute, LeBronomics: Could High Taxes Influence James' Team Decision?: While sports reporters have sought agents and teammates for the inside scoop on where NBA superstar free agent LeBron James will sign, there’s another person who may know The King’s next move: his accountant. [Here are the projected state and local taxes on…