Romney’s Cayman Islands holdings complicate tax return debate

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http://www.washingtonpost.com/business/economy/romney-cayman-islands-holdings-complicate-tax-return-debate/2012/01/24/gIQAmuvZOQ_story.html?tid=pm_business_pop

By David S. Hilzenrath, Published: January 24

Republican presidential candidate Mitt Romney’s newly released tax return shows sprawling international financial interests, from Bain Capital entities based in Luxembourg to a Goldman Sachs fund in Dublin. It discusses a foreign currency transaction and details foreign tax credits.

But one of Romney’s biggest foreign investments is sheltered from U.S. taxation, partly because it is based in the Cayman Islands.

“This is a classic example of how good tax planning avoids taxes until you want to pay taxes on the money,” said Martin Lobel, a Washington lawyer and chairman at Tax Analysts, a provider of information for tax specialists.

Even many Americans with sophisticated tax advisers “can’t take advantage of that kind of loophole,” Lobel said.

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1. I really love that this is becoming an issue