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"Taxpayers are
not required to continue that form of organization which
results in the maximum tax."
R.P. Motor Co. v. Commissioner
246 F.2d 509
One tool that has been used for many
generations by those 'in the know' to legally avoid
the 'maximum tax' is the UBO (Unincorporated Business
Organization).
What is a UBO? Quite simply, it's a
legally recognized business entity created by contract
which takes on the 'form' of a trust. It however, is
quite distinct from the statutory/civil law entity commonly
known as a 'trust', as it maintains some very peculiar
characteristics which offer some very unique and powerful
benefits.
The 'Living Trust', 'Inter-Vivos', or
'Testamentary Trust' touted by the so-called financial
'experts' has few of the advantages that a UBO can offer.
In fact there are many detriments.
For example: the UBO is formed under
common law and is not subject to statutory law (no restrictions);
the UBO has no registration requirements (privacy);
the UBO has no costly maintenance requirements; it can
own any asset and operate any business or large corporation;
IRS has admitted in writing that in regard to taxes,
it has 'no filing requirements';'it is supported by
more than 5000 court decisions including over 1500 by
federal courts and 144 by the U.S. Supreme Court -no
decision has been overturned; many other advantages
are too numerous to mention here.
One of the problems we face in the predatory
and legalistic society that we live in today. it that
the ownership of anything of worth has an inherent liability.
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When someone goes after you they can
get your 'stuff'. or conversely, when someone want.
your 'stuff' they go after you. Unfortunately, win or
lose you are depleted to some degree.
Why have the liability of ownership?
The super rich have long understood the concept of being
paupers on paper but living like princes. Ownership
is only vanity when you can have legal possession and
use of 'stuff' without the liability. This is where
the proper use of a system of UBOs comes into play.
There are four general categories
of taxation: corporation, partnership, individual and
trust The UBO is structured in such a way that it meet
none of the above categorical criteria.
Some of the better known examples of
this type of business structure are seen in the MESABI
TRUST which mines iron ore from the Mesabi Range in
northern Minnesota. The MESABI TRUST is so successful
its ownership units are traded on the NYSE. Other prominent
practitioners of this tool include the Edward H. Hines
Lumber Company, the H.L. Hunt Empire, Lyndon B. Johnson,
and America's founding father, Thornas Paine just to
name a few.
There are four general categories of
taxation. corporation, partnership, individual and trust.
The UBO is structured in such a way that it meets none
of the above categorical criteria, It is certainly not
an individual, partnership or a trust.
Is it treated (and taxed) as a corporation?
Continued
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TAXES DEPT.