IRS loses big case over payment in gold coins - facinating.

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IRS loses big case over payment in gold coins - facinating.

Now this is a facinating way to get around the tax system that has worked.

You come and work for me and I pay you one gold coin a day / week / whatever. The face value of that gold coin is what you are paid. So a $20 gold coin (pictured below) might be your wage for 3 weeks, yet the real value of that coin is $800.

What do you pay tax on? The face value of the coin, so you pay tax on $20.

Apparently Robert Kahre paid numerous workers for their labor with circulating gold and silver U.S. coins, and did not report the wages. The payments took place over several years, allegedly totaling at least $114 million dollars.

He did not report their wages because the low face value of the coin put it below a taxable level. The nominal (i.e., face value) of the gold and silver coins is so small as to fall beneath the reporting thresholds set by the Internal Revenue Code.

Easy isn't it! Not only you get tax free income but your gold coins are appreciating in value!

So IRS took him to court and lost..

Read more about it
 http://www.rense.com/genera...

And on this more reliable source
 http://www.lvrj.com/news/98...
... Quote:
A criminal tax case alleging income tax evasion and conspiracy dissolved in federal court this week, when a jury returned zero convictions on 161 charges faced by nine defendants.

Monday's verdict "sends a strong message," said defense attorney Lisa Rasmussen, who represented Joel Axberg, a tile layer.

Informally called the Kahre case -- after the primary defendant, local business owner Robert Kahre, who paid workers in gold and silver coins -- the trial lasted four months.

It relied heavily on evidence gathered in a controversial armed raid in May 2003 on several of Kahre's local business places. The raid entailed keeping more than 20 workers handcuffed, at gunpoint, in 106-degree heat without shade or water while agents collected records and equipment.

"Yeah, that's a pretty major victory," said defense lawyer William Cohan. "If you go 0 for 160 (in baseball), they'd send you down to the minor leagues."


US-Twenty-Dollar-Gold.jpg - 48.41kb
By netchicken: posted on 6-10-2007








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