“Beneficial effects” Mark Zuckerberg is a cunning move that would allow him to avoid paying taxes in reaching the billions of dollars. Facebook almost do not drain – and now also the founder of their escape.
At first glance, the statement Mark Zuckerberg, founder of Facebook that will allocate 99% of its own shares in the company – worth about $ 45 billion – to charity, it seems sincere. Other well-known billionaires like Warren Buffet or Bill Gates, also promised that a huge part of their estates to communicate these goals. However, in reality, a smart moves that will allow them to escape the tax unimaginable fortunes. Along with coming out to light the facts about the new foundation Zuckerberg, his behavior begins to look more and more at the paddock tax, and less and less on charity.
Unlike the non-profit foundation of Bill and Melinda Gates Foundation, the newly formed Initiative Chan Zuckerberg (the names facebookowego tycoon and his wife, Priscilla Chan) is a limited liability company (Limited Liability Company). This status allows you to carry out any activity – from investing in the private sector, through financial support to charity, after engaging in politics. The statement issued by Facebook confirms the information on the structure of the new project Zuckerberg:
The initiative Chan Zuckerberg will carry out its mission through financial support to non-profit organizations, private sector investment and participation in policy debates. Her goal is to have a positive impact on the areas where there are large for the […] any profits from the investment will be used to finance additional measures to the mission of the Initiative.
The statement also says that Zuckerberg will retain control over all of the shares in the Initiative and in the foreseeable future will be lead by the organization. Robert W. Wood, a journalist, “Forbes”, says that the decision to power-up initiatives stock market shares, rather than cash, is a skillful step in the business, which creates a lot more opportunities avoidance:
Why stocks? Passing them to charity, the donor receives depending on the market value of the tax relief because of the charity. The market value and the base are two different things, and the difference between them can mean a huge tax benefits. In the past, Zuckerberg donated hundreds of millions of dollars to charity Silicon Valley Community Foundation. Of course, in equity, thus avoiding the taxes, which have been levied on the increase in their value. Facebook went public in May 2012. The price of one share of the company then was at 38 dollars. Initially, their value fell below $ 20, but later increased by more than 25%, before Zuckerberg has made payments to the end of the year. Zuckerberg’s tax credit is dependent on the just market value.
Alice Ollstein the website Think Progress wrote that by transferring almost all of their shares to the company’s zoo, Zuckerberg will save at least 20% capital gains tax, which have been levied on the sale of shares. A Max, a child who inspired Zuckerberg to establish the Initiative will save millions of tax on inherited his father’s estate. As explained Woods, donation to charity is actually overflowing wealth from one account to another – tax-free – under the guise of dobroczynnoś you.
Ultimately remission action means that the profit that Zuckerbergwypracowałby at their sales never been taxed. Endowed organization can keep or sell the shares, but as a charitable company does not pay the tax in the case of getting rid of them, regardless of the amount of profit. And Zuckerberg has obtained a refund on the basis of the market value of the transferred shares, protecting billions more in profits.
This type of tax strategy is not alien to the owner of Facebook – the first listed public offering of the 2012 was the same strategy. Now these, which were covered by “stock options” (executive stock options), Facebook in the first year after the IPO has not paid a dime of taxes state and federal. As reported by the organization “Citizens for Tax Justice” (Citizens for Tax Justice) in its report of 2013, is not enough that the company did not pay any tax, it is still thanks to the construction of its initial public offering has received 429 million tax refund.
The income tax refund due to the use of one-time tax relief of being able to deduct tax “stock options” [the right to repurchase the company’s employees a specified number of shares at a lower price – ed. ed.]. Relief reduced state and federal income taxes on Facebook over a billion dollars in 2012, including a tax refund from the previous year in the amount of 451 million. But this is not the end all based on “stock options” tax exemptions, which used Facebook on the occasion of the IPO. The company has also gained the right to transfer to the next period of tax relief in the amount of 2.17 billion dollars.
German billionaire Peter Krämer knows exactly what is going on in such a “charity” as Initiative Chan Zuckerberg. In an interview with “Der Spiegel” in 2010, said the philanthropy of Warren Buffett and other billionaires who promise to provide at least 50% of their fortunes to charity, it is often only a trick to allow an escape from the honest tax: This type of initiative in the US are very problematic. You can deduct a charitable donation tax. The rich take so decide whether you prefer to donate money to organizations that pay taxes. In this way they take the place of the state. This is unacceptable.
“Der Spiegel” But if the money does not serve the common good?
Krämer: It is a bad practice of the transfer of power from the state to billionaires. It is not the state decides what is good for the citizens that want to take over the role of the rich. Such a development I think is very bad. What rights have these people to decide where they will go huge sums of money?
In defense of Zuckerberg can recall it to ensure that the initiative will allocate funds to ensure that all primary health care, prevention, treatment or reduction of the occurrence of most existing diseases in the next hundred years, and funding of “personalized” education programs online. In ubiegłomiesięcznym report for US Uncut wrote, however, that the previous offensive Zuckerberg in the field of philanthropy associated with the education sector meant, among others, pumping $100 million into the program, Chris Christie, who is essentially looting the public schools. The money was earmarked for the employment of consultants paid the amount of a thousand dollars a day, the release of a thousand eight hundred teachers and support staff and the closure of public schools while opening private. These actions were widely criticized in many news programs.