Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, May 11, 2018

Billionaire Sackler was a Tax Avoider on an Industrial Scale

image from https://s3.amazonaws.com/feather-client-files-aviary-prod-us-east-1/2018-05-11/9064103f-ca42-47a0-943d-bbf761a799c0.pngMortimer Sackler, who lived in the famed Belgravia Square in London, was known for his philanthropic efforts in England and receiving naming rights due to gifts to art institutes. New light has been shined on the ways that Sackler avoided taxes beyond charitable gifts.

Mortimer Sackler's brother, Raymond, is a citizen of America and is domiciled in America, therefore he pays his taxes to America. Mortimer decided to renounce his American citizenship, become a resident of the United States but have no domicile "in any part of the UK.” This could result in Mortimer's portion - especially those in a tax haven such as Bermuda - in their shared business to be taxes less than his brother's. “The domicile of a person is not the same as his residence; you can be here 365 days of the year and still be non-domiciled provided (if you have a foreign domicile of origin) your intention is to leave."

See David Cohen, The Sackler File: Billionaire Liked to Parade as a Philanthropist.. in Fact He Was Tax Avoider on Industrial Scale, Evening Standard, May 11, 2018.

Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.


Current Events, Estate Planning - Generally, Income Tax | Permalink


Note the title of the article suggests an inconsistency between charitable giving and tax avoiding behavior. Why would one suppose such a thing?

Posted by: Joseph W. Mooney III | May 13, 2018 8:43:13 AM

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