Dodgey Bush Money, Charles and Sam Wyly and the Isle of Man

international | anti-capitalism | other press Sunday June 05, 2005 19:42 by redjade

IOM is not in the EU - a Permanent Autonomous Zone for the wealthy

''The scheme, devised by one of America's biggest banks and used by two billionaire donors to George Bush's election campaign among others, is being probed for possible breaches of securities and anti-money-laundering rules.''

US Probes Isle of Man Scheme Used by Billionaire Bush Donors
Independent/UK
http://www.commondreams.org/headlines05/0605-03.htm

The Manhattan District Attorney, the Securities and Exchange Commission (SEC) and the US Internal Revenue Service (IRS) are jointly probing a tax-shelter plan run out of the Isle of Man.

The scheme, devised by one of America's biggest banks and used by two billionaire donors to George Bush's election campaign among others, is being probed for possible breaches of securities and anti-money-laundering rules.

The investigating bodies believed that up to $100m (£55m) of tax was saved through one scheme alone, and as much as $700m in taxes may have been avoided over an 11-year period. The scheme involved executives and corporations handing over stock to trusts that they declared they neither owned nor controlled. When the options were cashed in, no tax was payable. However, the IRS changed the rules in 2003 to say that tax should be paid anyway.

In the previous 11 years, tax schemes were marketed by Bank of America to at least 42 corporations.

[....]

They have contacted the regulators on the Isle of Man asking for information on one particular scheme used by two Texan billionaire brothers, Charles and Sam Wyly.

The duo, who made their money in computing and retailing, not only gave over $200,000 to President Bush's re-election campaigns, but also bankrolled TV adverts attacking his rivals, John Kerry and Senator John McCain.