Quick question: Are pension funds subject to UBIT (Unrelated business Income Tax) in the same way that endowments and foundations are?
If its not in the text, don’t worry about it. We are not expected to be Tax Experts on this exam.
for some reason i think they mention that pensions are taxed on 1% of investment income… can we get a yay or nay?
I’ll give you a Nay since I’m in that mood.
No they’re not and it’s a loophole that much of corporate America is just beginning to realize. In fact, I read over the weekend that Microsoft is rethinking its tax strategy and they are planning on filing for tax-exempt status as their software business is really just a business run by the Microsoft pension plan and, thus, is not subject to taxation.
Joey, How does that make any sense? You get into circular arguments like, management has the right, delegated by the Board, to dictate benefit changes and contribution levels. Yet the Board can only be authorized by its owner, which is the plan. And if the plan becomes insolvent, then the shareholders have a secondary right to company assets, after the beneficiaries of the plan? Huh? Their lawyers should stick to what they know, ie. establishing unbreakable monopolies and taking over the world.
uh, it was a joke… Edit: The principle is that you can’t start a business and expect to run it tax-free by using your tax-exempt status for something else.
We consider your word to be gospel…you should not be allowed to joke…Chad, can we make this a rule?
i actually envisioned JDV having coffee with Bill Gates pre-announcement…
For LOST fans, I envision Joey as Benjamin or Locke and Chad as Jacob
tax = evil = microsoft