Michael Jackson's children face £560m tax bill
MICHAEL Jackson’s children could lose more than half their inheritance in a £560million legal battle with the US taxman.
MICHAEL Jackson’s children could lose more than half their inheritance in a £560million legal battle
The Internal Revenue Service, is demanding the cash in back taxes and penalties in a court case against the late King of Pop’s estate.
The verdict, expected in weeks, could plunge Prince, 20, Paris, 18, and Blanket, 14, into financial crisis for the first time since their father’s 2009 death from drugs, age 50.
Their inheritances are due to be paid in stages from the time each hits 21. Other family members, including the singer’s mother Katherine, 86, could also be affected.
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Before he died, the Thriller star was close to bankruptcy but his fortune is now worth at least £1billion.
The crux of the Federal Tax Court case is the value of Jackson’s name and image on everything from souvenirs to worldwide tours based on his life.
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Soon after his death, executors John Branca and John McClain filed documents claiming the rights were worth just £1,680, claiming the star’s image was virtually worthless due to his drug use and other allegations.
IRS officials, however, say they were worth much more and that £347million is owed.
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The case is being watched by lawyers acting for the estates of Prince and David Bowie
Penalties would raise the figure to £560million.
A Jackson family friend said that if the IRS wins it could “have a dramatic impact on a lot of lives”.
The case is being watched by lawyers acting for the estates of Prince, David Bowie, Leonard Cohen and country legend Merle Haggard.