Who can tax a satellite?

[Black Unicorn]

Such a transfer would cause the entire value of the satellite to be taxed
as income to the selling company in at the end of the fiscal year.  Selling
the satellite to an island managed firm for $1 isn't going to fly.  Fair
market value will be assessed at the IRS's sole discretion and subject only
to an (expensive and normally futile) appeal to the U.S. Tax Court.

Bad move.

----- Original Message -----
From: "Bill Stewart" <bill.stewart at pobox.com>
To: <cypherpunks at cyberpass.net>
Sent: Wednesday, July 18, 2001 1:47 PM
Subject: Re: Who can tax a satellite?

> >At 02:30 PM 7/11/01 -0700, Black Unicorn wrote:

> > >No, the real question is who can knock down or render inoperable the
OWNER
> > >of the satellite.

Mr. Stewart replied:

> But ownership is easily fixed - a few magic words from a lawyer
> (ok, with a lot of expensive research into tax and accounting issues
first),
> and the satellite is owned by a Caribbean corporation owned by Hughes,
> so it's no longer physical property subject to Los Angeles property
taxes.
> That doesn't mean a tax collector can't try to attach one of Hughes's
> buildings near LAX, but it becomes a much different problem.