Thursday, September 13, 2007
Bahamas, Tax Shelters, IKEA
A friend of mine from college just took a new job at an environmental consulting firm in the Bahamas (Nice!). Curious, I checked out the Cape Systems Ltd. website and found that they have an intriguing ownership structure whereby Cape Systems, a for-profit business, is a wholly owned subsidiary of a non-profit organization. Not only does the profit function as part of the organization’s fund-raising – the business itself is designed to complement the program activities of the non-profit parent.
Now I ain’t the smartest man in the world - but I am guessing that the ‘numbers’ might pencil out for a tax-exempt parent to give away 5% of assets annually (in the U.S.) when compared to a standalone corporation paying taxes.
Which leads me to my second favorite Economist article ever: the labyrinthine (byzantine?) ownership structure of IKEA.
Posted by Mathew Johnson at 2:15 PM