CALIFORNIA BUSINESS MINUTE
Taxes
04-15-09
Hi, I am Tim Johnson and welcome to the California Business Minute.
According to the State Franchise Tax Board, celebrities including Dionne Warwick,
Burt Reynolds and comic -Sinbad are among 250 people with the largest delinquent
income tax bills. Together they owe $143 million in back taxes.
The annual list, intended to pressure those with large bills to pay up, represents
only a fraction of the $6.5 billion in personal income taxes that go unpaid each
year.
In addition the state uses a draconian law to seize millions of dollars worth of
assets belonging to foreigners including some of the biggest names in show business.
Celebrities including Kate Winslett, Helen Mirren, Clive Owen, Michael Caine and
the Irish actor Colin Farrell have all fallen victim that allows California to take
possession of bank accounts, stocks and the contents of security deposit boxes if
they are dormant for longer than three years. “The purpose of the program, which
began in 1959 and is in effect in every State in the nation, is to safeguard private
property from being lost during mergers or bankruptcies, drawn down by service or
storage fees, or simply used by private interests for personal gain – either through
an unwillingness to find the owner or just plain greed. “Even though unclaimed
property can be used by the Legislature for funding purposes, anytime a rightful
owner makes a claim, he/she is paid. In other words, the Legislature can’t have
the money if there is a claim on it. And the property is held in perpetuity for
the rightful owners/heirs.” The actor Clive Owen has had five unclaimed amounts
seized, with a total value of $4,658.84 (£3,215), while Colin Farrell has lost
$1,113.93
I am Tim Johnson and this has been the California Business Minute.
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