How Tom Siebel Sold $500 MILLION in Stock and Paid ZERO TAX!
September 22, 2006 2 Comments
Horizontal double dummy sounds like some kind of arcane sex position, but it’s actually a complex corporate structure that Tom Siebel, founder of Siebel Systems, used to avoid nearly $60M in capital gains taxes. Here’s how it worked, according to Forbes.com:
“A holding company dubbed Ozark Holdings was formed, which in turn formed two transitory subsidiaries–the “dummies” of the deal. One dummy merged with Oracle, and Oracle stock was exchanged entirely for Ozark Holdings stock. Simultaneously the other dummy merged with Siebel. Only 30% of Siebel stock was exchanged for Ozark Holdings stock; the rest was exchanged for cash.”
You would think that a gaping loophole like this that’s been around since the ’70s would have been closed up. Guess not! Stay tuned for the “triple dummy seesaw backpass”. But I digress…check out the full article at Forbes.com.
The Anonymous Accountant 
This type of avoidance shouldn’t be allowed and is a prime example of big business avoiding taxes. The country needs the tax revenue more than ever before and the treasury should act to put an end to such practices.
This is a fact of life. The rich often pay very little in tax, which keeps them rich.