A billionaire who pledged to pay off the debt of an entire college class will pay $ 140 million to settle a 4-year tax investigation, according to a report.
- Billionaire Robert Smith will pay $ 140 million to settle a four-year tax investigation, Bloomberg reported on Wednesday.
- The CEO of private equity firm Vista Equity Partners will admit fault but will not be sued, sources told Bloomberg.
- The settlement amount, which is expected to be made public as early as Thursday, would include back taxes, penalties and interest.
- Bloomberg reported in August that Smith was the subject of a four-year Justice Department and IRS investigation into unpaid taxes on $ 200 million in assets.
- Smith made headlines last year when he pledged to pay off student loans for the entire graduating class of 2019 at Morehouse College.
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Robert Smith, the billionaire who pledged a year ago to pay off the student debt of an entire class of college graduates, will pay $ 140 million to settle a four-year tax investigation into assets held in tax havens offshore, Bloomberg reported on Wednesday.
Citing sources familiar with the matter, Bloomberg said Smith briefed some executives on the ongoing deal on Wednesday. Bloomberg said Smith, who heads private equity firm Vista Equity Partners, was cooperating with investigators and would admit wrongdoing but would not be prosecuted.
Bloomberg reported in August that Justice Department and IRS officials spent four years investigating whether Smith owed taxes on $ 200 million in assets that have been transferred through offshore entities.
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The settlement, which a source told Bloomberg could be made public as early as Thursday, would include back taxes, penalties and interest. It doesn’t involve Vista, Bloomberg said.
Representatives for Smith, Vista Equity Partners and the US attorney in San Francisco declined to comment on Bloomberg on the nature of the deal.
Smith’s settlement includes a non-prosecution agreement that he did not pay around $ 30 million in taxes, with penalties and interest making up the remainder of the payment, a source told Bloomberg.
The person added Smith admitted in a phone call to failing to file accurate reports on foreign bank and financial accounts over three years.
Smith made headlines last year when he pledged to pay off student debt for all the 2019 promotion at Morehouse College in Georgia.
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