US: The “big bosses” of the Renaissance investment fund paid $ 7 billion to settle the allegation of “tax dodging”
Renaissance Technologies senior executives will have to pay about $7 billion to the Internal Revenue Service (IRS).
This settlement is the highest ever in relation to tax matters in the US.
The Wall Street Journal, citing a letter that Renaissance company sent to investors, said fund founder James Simons would have to pay an additional $670 million.
The settlement is related to the IRS alleging that Renaissance converted short-term profits from its Medallion fund into long-term profits for lower taxes between 2005 and 2015.
Renaissance is an investment fund known for its investment strategies based on complex computer models capable of processing large amounts of information.
In a letter to investors, the company said it has participated in the IRS’s Appeals process over allegations of tax evasion over the past few years, and emphasized the authenticity of Medallion’s tax returns.
However, Renaissance’s board of directors concluded that the interests of investors for the period 2005-2015 would be best preserved with the company agreeing to a settlement with the IRS, rather than risking it. an outcome could be worse.
The group of seven members of the board of directors for the period 2005 – 2015, as well as their spouses will be required to pay the aforementioned settlement. Those who have invested in the fund during that time will also have to pay another sum, and Renaissance recommends that they consult with tax professionals.