Former H-P (HPQ) Chair Lane Faces $100M Bill After Tax Shelter Denied
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(Updated - June 6, 2013 2:43 PM EDT)
Hewlett-Packard (NYSE: HPQ) shares are moving off of session lows following headlines that former chairman Ray Lane is being saddled with a $100 million tax bill.
Last December, the U.S. IRS found Lane participating in a "sham" tax shelter which generated improperly claimed losses of $251 million aimed at offsetting income. Lane claimed in appeal papers filed May 6th, that his partnership, Vanadium Partners Fund LLC, had a "legitimate business purpose."
Lane worked at Oracle (Nasdaq: ORCL) for a number of years, leaving the company in mid-2000 with about $1 billion in stock options. He said tax advisors told him to invest $25 million in a fund which back tech startups and offset income.
Bloomberg notes today that Lane hasn't discussed the matter with Hewlett-Packard or Kleiner Perkins, a firm where he's Chairman Emeritus and aiding in many startup investments.
Lane has said he's paid 32 percent to 38 percent of his income in net taxes over the last 15 years. He has since signed a settlement with the IRS, but hasn't paid the outstanding bill yet.
Hewlett-Packard (NYSE: HPQ) shares are moving off of session lows following headlines that former chairman Ray Lane is being saddled with a $100 million tax bill.
Last December, the U.S. IRS found Lane participating in a "sham" tax shelter which generated improperly claimed losses of $251 million aimed at offsetting income. Lane claimed in appeal papers filed May 6th, that his partnership, Vanadium Partners Fund LLC, had a "legitimate business purpose."
Lane worked at Oracle (Nasdaq: ORCL) for a number of years, leaving the company in mid-2000 with about $1 billion in stock options. He said tax advisors told him to invest $25 million in a fund which back tech startups and offset income.
Bloomberg notes today that Lane hasn't discussed the matter with Hewlett-Packard or Kleiner Perkins, a firm where he's Chairman Emeritus and aiding in many startup investments.
Lane has said he's paid 32 percent to 38 percent of his income in net taxes over the last 15 years. He has since signed a settlement with the IRS, but hasn't paid the outstanding bill yet.
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