It's well known that the rich tend play play by a different set of rules than the rest of us. Case in point: George Soros, who may soon decide to pay a monumental tax bill after years of playing hardball with the IRS.
The total? Nearly $7 billion.
Despite Soros having publicly advocated for higher taxes on the wealthy, the liberal billionaire reportedly has delayed paying his own for years thanks to a loophole in U.S. law. It's a classic case of 'do as I say not as I do', it would appear.
That tax loophole was closed by Congress in 2008, but prior to that, Soros used it to defer taxes on client fees. He reinvested the fees in his own fund and they grew tax-free.
According to Irish regulatory filings, Soros has made $13.3 billion in this way. Factoring in the multiple tax rates that would apply, one tax expert estimated Soros would have a roughly $6.7 billion bill.
Congress has ordered fund managers to pay up by 2017.
According to Bloomberg, Soros moved assets shortly before the change to Ireland, viewing the tax haven as a possible shelter from the law. But tax attorneys consulted by the news agency said they don't know of a way for money managers to avoid the bill in 2017.
The revelations show that while the noose is tightening around the necks of tax dodgers if you're as wealth and as powerful as Soros there's always a trick to stay one step ahead of the tax man. For regular folks its pay up or get caught out. And if there's one debt you never want, its a tax debt.