[lbo-talk] Tax free Riza

Michael Pollak mpollak at panix.com
Sun Apr 15 02:43:53 PDT 2007


On Sat, 14 Apr 2007, tfast at yorku.ca wrote:


>> I've read many references to Shaha Riza's (Wolfowitz's girlfriend's) WB
>> salary being tax free, both originally and after secondment. But no one
>> goes into details and I don't understand how.
>
> I believe all "tax free" means is that it is tax free at the source. Once
> the money is patriated it should be taxable.

That was what I wondering. But this article in the WP:

http://www.washingtonpost.com/wp-dyn/content/article/2007/04/14/AR2007041401564.html?referrer=emailarticle

says he also secured quarter-million dollar tax free salaries for two cronies who were US citizens:

<quote>

Wolfowitz has clashed with the staff over pay packages and authority he gave to aides Robin Cleveland and Kevin Kellems, whom he brought to the bank from the White House, installed in senior positions and rewarded with open-ended contracts and quarter-million-dollar, tax-free salaries, despite their lack of development experience.

<unquote>

So now I'm really confused about the mechanics of this. Is getting your salary tax free SOP at the WB?

Michael



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