Tax Benefits Turned into Legal Tax Evasion Tools... 8 Trillion Won Asset Owners Employ Mothers-in-Law and Relatives for Schemes

Roblox logo and game characters. Photo by Roblox Facebook screen capture.

[Asia Economy Reporter Heo Midam] David Baszucki, the founder of the American metaverse platform 'Roblox,' reportedly received substantial tax benefits by transferring company shares to his family.

On the 28th (local time), the US daily New York Times (NYT) reported that Baszucki and his family received significant tax reductions through tax relief benefits aimed at small and medium-sized enterprises.

Roblox's market capitalization is estimated at $60 billion (approximately 71 trillion KRW), and Baszucki's assets are estimated at $7 billion (approximately 8 trillion KRW).

In the United States, when selling stocks, one must pay 'capital gains tax' depending on the holding period and the income of the owner. Capital gains tax is a tax on profits from the sale of assets such as stocks, bonds, and real estate.

However, Baszucki, his wife, their four children, as well as his mother-in-law and cousins, are reported to have been exempted from the 23.8% capital gains tax through the 'Qualified Small Business Stock (QSBS)' program, which is designed to promote investment in small businesses.

This program provides federal tax exemption benefits for stocks of companies with total assets not exceeding $50 million (approximately 59.4 billion KRW). It was created in 1993 during the administration of former US President Bill Clinton to stimulate investment in small businesses.

The NYT stated, "Through the QSBS program, small businesses or startups can avoid taxes on capital gains up to $10 million (approximately 1.18 billion KRW) over one year." However, it also noted that recently, American 'super-rich' individuals have been using this as a tool for legal tax avoidance. For example, a small business founder may receive capital gains tax exemption up to $10 million and then establish trusts to distribute shares to family members.

Regarding this, the NYT reported that among Silicon Valley CEOs, the practice known as 'stacking'?publicly distributing company shares to spouses, children, relatives, and friends to receive layered tax benefits?is widespread.

The media also reported, "Early investors in famous Silicon Valley startups such as Uber, Lyft, Airbnb, Zoom, Pinterest, and DoorDash all received tax exemption benefits by distributing shares to friends or family."

Among these companies, a Lyft spokesperson stated, "The founder did not receive tax benefits," but other companies, including Roblox, reportedly have not released related statements.

This content was produced with the assistance of AI translation services.