The billionaire made a tax maneuver that may result in “the single biggest tax dodge in US history,” according to US media reports.
While the US Congress is trying to find ways to pay for its tax break that was eliminated in 2008, American billionaire George Soros has donated billions to his Open Society Foundations over the past years, and now the money can never be taxed by the US Internal Revenue Service (IRS), according to The Wall Street Journal.
“This may be the single biggest tax dodge in US history, yet no one on the right or left seems to have raised an eyebrow,” the newspaper noted.
According to the WSJ, when a person donates untaxed assets to a private foundation he can hold up to 20 percent of its market value on his tax return. Congress eliminated the tax break in 2008, giving investors until December 31, 2017, to return their money and pay the accumulated taxes. After Soros used the tax maneuver, the IRS could not touch the money, the newspaper explained.
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The Hungarian-born billionaire has transferred nearly $18 billion of his estimated $24.6 billion fortune to his pro-democracy Open Society Foundations, the WSJ reported last month, citing foundation officials.
Soros established a special investment committee within the foundation and appointed its chairman, according to the report. Soros is not planning to trade the funds he transferred to Open Society.