Frank Lowy linked to tax evasion scheme

[Macquack]

Greedy Capitalist Pig's the Lowy clan are under investigation for tax evasion via a Liechtenstein tax haven.

A US Senate inquiry into the use of offshore tax havens is examining the banking strategies used by Australia's second-richest man and his sons.

Mr Lowy, a former Reserve Bank board director (talk about puting the cookie monster in charge of the cookie jar), is ranked by the BRW Rich List as being worth $6.3 billion and is the major shareholder of Westfield. US law requires American residents to disclose any interest in a foreign trust.

Son Peter Lowy an American citizen and head of the U.S. division of Westfield Group ranks as one of the wealthiest individuals in Los Angeles, he is a major political donor and philanthropist (to himself).

"Tax havens are engaged in economic warfare against the United States, and the honest, hardworking American taxpayer is losing," subcommittee Chairman Sen. Carl Levin (D-Mich.).

The Senate hearings have focused on the Swiss bank UBS and a private bank, LGT, owned by the royal family of Liechtenstein. Levin said that Frank Lowy, Peter's father, set up a foundation with LGT in 1998 after telling the bank that he did not want Australian tax authorities to know about the money involved.

The report says the documents "make it clear that LGT was aware that Mr Lowy and his sons were hiding assets in the new foundation from Australian tax authorities". And they add that the Lowys "took a number of measures" to keep the foundation, and their relationship with the bank, secret.
An inquiry by the US Internal Revenue Service into the Lowy family foundation is continuing.

Interesting, this is the same US Senate committee that uncovered the Australian Wheat Board's shonky dealings with Saddam Hussein while the Liberal Government had their heads in the sand.

http://www.abc.net.au/am/content/2008/s2307370.htm
http://www.theaustralian.news.com.au/story/0,25197,24037786-601,00.html
http://www.theaustralian.news.com.au/story/0,25197,24042867-2702,00.html
http://www.news.com.au/dailytelegraph/story/0,22049,24034187-5001028,00.html
http://www.latimes.com/business/la-fi-taxshelter19-2008jul19,0,7391840.story

 

[wildkactus]

It's also interesting that this only came to light, because an employee of LGT stole the client info and sold it to the tax authorities of several countries. reportally got over $2m from the germans (weekend AFR)
The Lowry's are not the only people in OZ being look at, so Iam sure we will here a lot more about this in the next few weeks.

Anyway I still do not Know why these HNWI do not set themselves up in a Low tax country and run their business from there, it just makes a lot more sense then trying to out smart the tax authorities, especially when there are so many legal ways to do it.

 

[Tysonboss1]

How exactly do Tax havens work,

Is it that you export pre-tax dollars in to the tax haven, whats the idea.

 

[theasxgorilla]

A true Australian would realise that Australia winning the soccer world cup is far more important than this and that Frank Lowy is integral to that.

 

[wildkactus]

How exactly do Tax havens work,

Is it that you export pre-tax dollars in to the tax haven, whats the idea.

There are several ways thay can work. and lots more if your creative.
some common ways to use a Tax haven.
1. the reinvoice company, you buy goods from x country then reinvoice these goods from your OFFShore Tax Haven Company keeping some of the profits OS untaxed.

2. Take your profits / dividends / income after tax, that you earned in a high tax country then invest it via a tax Haven so they will not incur anymore tax, on the earned interest / Capital gain from this money.

3. setup entire business OS and pay no or little tax.

4. the purchasing of companies, art, boats, planes to get the benifets of the tax havens laws over those of your country of residence.

5. just plain old asset protection, most tax havens will not give out the details of the owner of the assets.

for more info look at this site www.lowtax.com

should also say that some of these stratagies are illegal if you are a residence for tax purposes.

 

[Macquack]

Anyway I still do not Know why these HNWI do not set themselves up in a Low tax country and run their business from there, it just makes a lot more sense then trying to out smart the tax authorities, especially when there are so many legal ways to do it.

Common sense and decency dictates that income taxes should be payable in the country where the income is sourced.

If the Lowy family want to pay token taxes in Liechtenstein (evade taxes in Australia), then they should pack up their bags and their shopping centres and relocate to that tax haven.

 

[Macquack]

A true Australian would realise that Australia winning the soccer world cup is far more important than this and that Frank Lowy is integral to that.

If Australia's chances of securing the Soccer World Cup hinges on the criminal activities of its chairman, then we dont need it and we need a new supremo.

 

[wildkactus]

Common sense and decency dictates that income taxes should be payable in the country where the income is sourced.

the only problem here is that australia wants tax on income not derived from australia, if you are resisdent in australia, which i think is totally unfair.

The rest I agree with, yes move OS if you don't like the rules in Aus I did and are a lot better off.

 

[ROE]

I can understand a guy who cant make end meet dodge tax but the rich list doing it is a disgrace

throw them all in jail so they get a bit of love from the sisters ... because fines just dont scare these guys cos they own the money..

 

[Tysonboss1]

Common sense and decency dictates that income taxes should be payable in the country where the income is sourced.

If the Lowy family want to pay token taxes in Liechtenstein (evade taxes in Australia), then they should pack up their bags and their shopping centres and relocate to that tax haven.

Using that theory though the lowys would pay 48% in usa tax and then 48% of the remainder in australian tax.

 

[Pronto]

Greedy Capitalist Pig's the Lowy clan are under investigation for tax evasion via a Liechtenstein tax haven.

Frank Lowy (and his family) may or may not be greedy pigs; I don't know. But he is certainly a capitalist and I'm not sure that the three words necessarily have to go together.

I am confident that there are also greedy socialist pigs. No particular economic belief or structure has a monopoly on greed or any other human characteristic, despite what their proponents would have you think.

 

[theasxgorilla]

If Australia's chances of securing the Soccer World Cup hinges on the criminal activities of its chairman, then we dont need it and we need a new supremo.

Something tells me you lack awareness of how the real world works. Black and white exists in the small space between the armrests of your TV chair...the rest of the world occurs in varying shades of grey.

 

[Macquack]

Peter Lowy infuriates US Senate panel

No. 1 son of the Lowy's Westfield Empire - Peter Lowy, the former Australian, turned US citizen clammed up in front of US Senate hearing into his dealings with a tax haven bank - LGT Bank in Liechtenstein.

Lowy took the standard response of a guilty person and refused to answer any of the questions directed at him. Lowy chose to cry the much over-used fifth amendment plea of silence allowed under the US constitution.

http://compareshares.com.au/show_news.php?id=S-500702

 

[professor_frink]

Greedy Capitalist Pig's the Lowy clan are under investigation for tax evasion via a Liechtenstein tax haven.

well said comrade Macquck!

 

[Macquack]

Billionaire Big Boy's Tax Deductible Toys

WESTFIELD boss Frank Lowy and his companies should be granted no favours by the Australian Taxation Office as it investigates a $73-million offshore tax haven, the chairwoman of a powerful parliamentary committee says.
Labor MP Sharon Grierson, who chairs the Joint Committee of Public Accounts and Audit, said she would be seeking reassurance from the tax commissioner that any deliberate tax evasion emerging from money stashed in Liechtenstein would be pursued.
"There is a perception that different treatment is given to the higher end of taxpayers than ordinary taxpayers," Ms Grierson said.

Part of that investigation had centred on Mr Lowy's $110 million super yacht, Ilona, which has 18 guest bedrooms, a gym, massage room and a helicopter. It is understood much of the investigation focused on the boat's log book or rather lack of a log book.

Check out this link to a video of Lowy's helicopter emerging from its hanger under the aft deck. It is like something out of the Thunderbirds (Frank must have been a fan).

http://www.youtube.com/watch?v=dWWQdZnTFiw

I wonder if I can claim my jet ski as a business expense?

 

[wildkactus]

Billionaire Big Boy's Tax Deductible Toys

WESTFIELD boss Frank Lowy and his companies should be granted no favours by the Australian Taxation Office as it investigates a $73-million offshore tax haven, the chairwoman of a powerful parliamentary committee says.
Labor MP Sharon Grierson, who chairs the Joint Committee of Public Accounts and Audit, said she would be seeking reassurance from the tax commissioner that any deliberate tax evasion emerging from money stashed in Liechtenstein would be pursued.
"There is a perception that different treatment is given to the higher end of taxpayers than ordinary taxpayers," Ms Grierson said.

Part of that investigation had centred on Mr Lowy's $110 million super yacht, Ilona, which has 18 guest bedrooms, a gym, massage room and a helicopter. It is understood much of the investigation focused on the boat's log book or rather lack of a log book.

I wonder if I can claim my jet ski as a business expense?

Sounds like another witch hunt to me,
lets get these rich guys who have these toys and I don't.

I'am sure these commitiees have nothing better to do then search for a high profile case like this to help with their political careers, with what is going on in the financial markets I am sure there would be a better use for there time. And hows much will this cost the tax payer, 100, 200mil to get back 30 or 50mil, now that's a good deal isn't it.

And Yes you can claim your jet ski if it is used for business or is set up for charter in a charter company. The same as these guys with their superyachts do, they set them up as a charter business, then they charter them when they want to use them.

 

[zolow]

I wonder if I can claim my jet ski as a business expense?

So long as you keep a log book of personal and business trips, I think that would be okay! :

I am a in two minds about this whole thing. On one hand I can see that it is unfair that high networth individuals pay less tax (proportionately), when the rest of us have to pay the set rates.

However when you are earning as much as these guys, I'd be of the mind set that I'll be damned If I'm going to be paying 40% tax on my entire income, you just don't see the benefits. I can also see that most of these guys have worked their buts off to get to the level they are (with the exception of a very few). So although they aren't paying enough as a proportion of their income I'm sure that they are paying a lot more than the average person.

Also perhaps it would be better taxing HNI's at a lower tax rate so that they are actually pay more tax (in $$$) rather being motivated to explore tax minimisation methods.

Z

 

[wildkactus]

Also perhaps it would be better taxing HNI's at a lower tax rate so that they are actually pay more tax (in $$$) rather being motivated to explore tax minimisation methods.

I have to agree with this, everyone should pay the same % of income tax, and if it was at a fair rate IE under 20%.
I think you would be supprised by how much money would stay here in OZ and how many more people would look at OZ as a place to setup shop.

 

[Lumber Joe]

"Tax havens are engaged in economic warfare against the United States, and the honest, hardworking American taxpayer is losing," subcommittee Chairman Sen. Carl Levin (D-Mich.).

In fact that's true, but if US liberalized its economy, this would be very strong incentive for US economy.

 

[Macquack]

Give Lowy no help, Tax Office warned US
November 8, 2010
http://www.watoday.com.au/business/give-lowy-no-help-tax-office-warned-us-20101107-17ixg.html

AUSTRALIAN tax authorities have warned their US counterparts not to give Peter Lowy, the US-based son of billionaire Frank Lowy, documents arising from a cross-border investigation into his tax affairs, arguing the move could seriously damage relations between the two countries.

In July 2008, a US Senate committee, which was examining the use of tax havens by US citizens, accused the Lowys of using a Liechtenstein bank and a sophisticated trust structure to hide $US68 million from tax authorities.

But a few months after the high-profile Senate committee hearings, Mr Lowy, his wife Janine and their Delaware-registered company, Beverly Park Corporation, filed freedom-of-information requests with the IRS seeking documents arising from the investigation.

Mr Lowy is suing the IRS after being denied access to more than half of the estimated 12,700 pages of material uncovered during the FOI search.

So it is alright for Peter Lowy to hide taxation documents from the US Government and cry the "Fifth Amendment" when questioned by the Senate hearing, yet he has the gall to sue the IRS for being denied freedom of information.

I hope the US authorities nail this splineless prick.