According to the Financial Times, Ebbers made a donation to Mississippi College that was financed by loans he received from WorldCom when he was CEO. It involved Ebbers guaranteeing a letter of credit on bond issues from the school he graduated from.
While the bonds were guaranteed using his stock as collateral, this was replaced by $36.5m in cash by WorldCom, when the stock price fell.
Although the tax benefit can only be realised once the bonds mature, Ebbers has made a request to the Bank of America that they be paid earlier than planned. This, according to the FT, could be as early as February.
Does Darwin's theory apply to taxation? Colin ponders...
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements