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Robert Kraft Among Sports Team Owners Who Appear In The Paradise Papers

Robert Kraft Among Sports Team Owners Who Appear In The Paradise Papers
From Deadspin - November 9, 2017

The offshore holdings of New England Patriots owner Robert Kraft, along with those of several other American sports owners, have been discovered in the Paradise Papersthe millions of leaked documents that detail the international financial data of some of the worlds largest corporations and wealthiest peopleaccording to the Guardian. These holdings could have been used to reduce U.S. taxes or avoid paying them altogether.

Along with Kraft, the other named owners are Micky Arison of the Miami Heat, Steve Pagliuca of the Boston Celtics, and Peter Karmanos of the Carolina Hurricanes. Kraft is listed as having a holding company and bank accounts in Bermuda. His firm pays no taxes on profits, income or dividends, in return for an annual fee, and Bermudan authorities would have promised to keep his ownership strictly confidential. The value of Krafts holdings was undisclosed.

A spokesperson for the Patriots owner claimed to The Guardianthat the company had only been established to more easily facilitate business with certain customers and handled relatively small amounts of money. The spokesperson denied any tax-based motivation for the companys establishment.

The Heats Micky Arison was identified in the documents as director of an insurance subsidiary of Carnival Corporation, the massive cruise operator where Arison serves as chairman. As the Guardian explains,

Forming a captive insurance company in Bermuda, which has no corporation tax, can lower a corporations tax bill. The insurance premiums that a company pays to its in-house insurance firm may be tax-deductible. The premiums themselves remain within the corporation, without being taxed as profits would be. Companies are not required to make the captive insurers accounts public.

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