A billionaire that vowed to pay off the debt of an entire college class will pay $140 million to settle a four-year tax probe, a report says

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    A billionaire that vowed to pay off the debt of an entire college class will pay $140 million to settle a four-year tax probe, a report says

    Robert Smith

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    • Billionaire Robert Smith will pay $140 million to settle a four-year tax investigation, Bloomberg reported Wednesday. 
    • The CEO of private equity firm Vista Equity Partners will admit misconduct, but will not be prosecuted, sources told Bloomberg. 
    • The settlement amount, which is expected to be made public as early as Thursday, includes back taxes, penalties and interest. 
    • Bloomberg reported in August Smith had been the subject of a four-year investigation by the Justice Department and Internal Revenue Service into outstanding taxes on $200 million in assets.
    • Smith hit headlines last year when he vowed to pay off the student loans of the entire graduating class of 2019 at Morehouse College. 
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    Billionaire Robert Smith, who pledged a year ago to pay off the debts of an entire class of college graduates, will pay $140 million to settle a four-year tax investigation involving assets held in offshore tax havens, Bloomberg reported Wednesday. 

    Citing sources familiar with the matter, Bloomberg said Smith told some executives of the pending agreement on Wednesday. Smith, who heads up private equity firm Vista Equity Partners, was cooperating with the investigation, and will admit misconduct but will not be prosecuted, Bloomberg said.

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    Bloomberg reported in August the Justice Department and Internal Revenue service officials have spent four years  investigating whether the billionaire tech investor and philanthropist owed taxes on $200 million in assets that were moved through offshore entities tied to Houston-based businessman Robert Brockman. 

    The settlement which could be made public as early as Thursday, according to one source, includes back taxes, penalties, and interest. It does not involve Vista, Bloomberg said.

    A spokesman for Smith and Vista Equity Partners and the US attorney declined to comment to Bloomberg on the nature of the agreement. 

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    Smith’s settlement includes a non-prosecution agreement that states he failed roughly $30 million in taxes, with penalties and interest accounting for the remainder of the payment, one source who held a telephone conversation with Smith on Wednesday told Bloomberg. 

    The person added Smith admitted on the call he failed to file accurate reports of foreign bank and financial accounts over three years, also known as FBARs. 

    Smith hit headlines last year when he pledged to pay off the student debt of the entire 2019 graduating class at Morehouse College in Georgia. 

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    (the headline, this story has not been published by Important India News staff and is published from a syndicated feed.)

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