Shifting the address of his Liberty Global Inc. from Colorado to London last year didnt just put billionaire John C. Malone in a position to reduce his companys tax bill.

He also took precautions to avoid the capital-gains hit that the so-called inversion would trigger for him and other investors. The day before the deal was announced, Malone -- the companys chairman and controlling shareholder -- transferred $600 million of his shares into a tax-exempt charitable trust. He avoided paying taxes on his remaining stake, worth about $260 million, by exploiting IRS regulations meant to block a different loophole.

All told, Malone escaped about $200 million in personal taxes, and Liberty Globals U.S. shareholders together likely saved more than a billion dollars, according to data compiled by Bloomberg.

Hes congenitally averse to paying taxes, said Robert Willens, an independent tax accounting analyst in New York City.

Tax Inversion

As the Obama administration attempts to implement anti-inversion rules announced in September, Libertys strategies illustrate how billionaires and their companies find their way around tax regulations, and take advantage of unintended consequences.

Malone -- whose net worth is $7.5 billion, according to the Bloomberg Billionaires Index -- has a history of creative tax-avoidance tactics. Over the years, many of the 73-year-old media billionaires biggest deals, such as buying the Atlanta Braves, have helped his companies to cut their tax bills.

Malone has at least four other charitable trusts, with more than $210 million in assets, IRS records show. Such trusts permit wealthy individuals to use the tax-exempt status of a charity to shelter income. In the past two years, he has also taken advantage of an Irish tax break to buy prime real estate in central Dublin.

Marcus Smith, a Liberty Global spokesman, declined to comment. He directed a request to interview Malone to Courtnee Ulrich, a spokeswoman at another of Malones companies, Liberty Media Corp. She declined to answer questions and said Malone would not comment.

A Connecticut native, Malone runs his growing media empire from his adopted state of Colorado. He recently surpassed Ted Turner -- a predecessor as owner of the Braves -- as the largest private landowner in the U.S., according to The Land Report magazine. He owns about 2.2 million acres, including more than 5 percent of Maines total land mass.

Originally posted here:

Malone Gained Double Tax Break in Liberty Address Shift