— Michael Luo (@michaelluo) October 2, 2012
The New York Times’ Michael Luo and Mike McIntire report that Mitt Romney’s use of offshore accounts in the Cayman Islands have enabled both his individual retirement account and Bain Capital to avoid taxes.
Some of the offshore entities enabled Bain-owned companies to sidestep certain taxes, increasing returns for Mr. Romney and other investors. Others helped Bain attract foreign investors and nonprofit institutions by insulating them from taxes, again augmenting Mr. Romney’s bottom line, since he shared in management fees based on the size of each Bain fund.
Romney has said that he got “not one dollar of reduction in taxes” out of his Cayman Islands investments. “The Romneys’ investments in funds established in the Cayman Islands are taxed in the very same way they would be if the Romneys held their shares of the fund investments directly in the U.S. rather than through a Cayman fund,” his campaign said in a January statement.