Harlan Crow headlines return to national papers this week as the local developer refuses to cooperate with Senate investigators.
Investigators from the US Senate Finance Committee are trying to determine if Crow used his superyacht as a tax deduction vehicle. The yacht’s registration says it is part of a for profit entity.
The wealthy often lower their taxes buying and operating their jets and yachts.
Crow follows the formula through a company that purported to charter the yacht. Per Pro Publica, the way Crow uses the yacht raises questions about his compliance with the tax code.
Pro Publica reports that Crow generally paid an average income tax rate of 15% per IRS data in their possession.
Crow lawyers argue that the US Senate investigation violates the separation of powers between Congress and the courts.
Harlan Crow Headlines Continue Bad National Press
Earlier this year it ProPublica reports Crow had a close relationship with Supreme Court justice, Clarence Thomas. A relationship fed with lavish gifts.
Specifically, it appears these trips on the Crow superyacht are gifts that would total in the thousands of dollars. These gifts would require a gift tax form.
These gifts could result in higher taxes for Crow including penalties, but the larger question looms. What did he gain by these tax advantageous gifts.
Earlier reports also show Crow holds a second citizenship. This is not illegal, but is referenced as a cash for citizenship scheme.
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