Rick and Ann Scott’s Financial Documents Reveal a Cayman Islands Tax Haven

From Steve Bousquet of the Tampa Bay Times, 08/27/2018:

The portfolio of Gov. Rick Scott and First Lady Ann Scott includes earnings last year of at least $2.9 million in two dozen hedge funds registered in the Cayman Islands, a well-known tax haven for U.S. and foreign investors.

The investments had a minimum total value of $25 million and a potential value of $62 million, according to the financial disclosure statement Scott filed last month as a U.S. Senate candidate.

The 125-page statement included details of Scott’s blind trust, managed by a New York trustee who’s a former business associate of the governor’s.

… Scotts’ assets totaled at least $255 million. The governor has not said whether he will continue to have a blind trust if he’s elected to the U.S. Senate.

… The July 27 filing is the first time in his nearly eight years as governor that Scott was required to disclose his wife’s financial holdings.

Foreign investors park money in the Cayman Islands to avoid U.S. taxes. The British territory also is favored by corporations and partnerships that want to avoid the long reach of the IRS in taxing unrelated business income.

… Another investment listed by the Scotts, Canyon Balanced Fund LP, was held solely by the governor and had a value of between $5 million and $25 million, and produced income last year of between $100,001 and $1 million.

… As the Times/Herald has reported, the Scotts last year invested $3 million in a credit fund of the parent company of All Aboard Florida. The state-regulated firm operates a commercial rail line on Florida’s east coast and has expressed a desire to run a high speed rail line from Tampa to Orlando that Scott now supports, even though he rejected $2.4 billion for a similar project in 2011.

… In addition, Scott’s statement shows that he had investments last year in companies that did business with the Maduro regime in Venezuela, after Scott called on state investment fund managers to sever ties with businesses that do business there.

The Scotts also held stock — since sold — in a worldwide shipping firm whose clients included a firm with links to the Vladimir Putin regime in Russia.

Read more here.

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