EFTA02519671.pdf

From: Jeffrey Epstein <jeevacation@gmail.com> Sent: Thursday, September 19, 2013 10:54 PM To: Melanie Spinella Subject: Fwd: Avioneta Holdings, LLC Forwarded me=sage From: Thomas Turrin <=pan dir="ltr"><TTurrin@rem-co.c=m <mailto:TTurrin@rem-co.com» Date: Thu, Sep 19, 2013 at 6:00 PM Subject: RE: Avioneta Holdings, LLCTo: Jeffrey Epstein <jeevacat=on@gmail.com <mailtoieevacation@gmail.com» The "revenue" contrib=ted to the LLC to manage the aircraft is no longer considered revenue (it =as prior to May 2013). <=p> Anything paid to the LLC =bove the calculated revenue based on hours is in capital contributions.=/u> <=p> c=p> <=p> c=p> c=p> From: Jeffrey =pstein (mailto:=eevacation@gmail.com <mailto:jeevacation@gmail.com> Sent: Thursday, September 19, 2013 4:52 PM To: Thomas Turrin Subject: Re: Avioneta Holdings, LLC where is the 9 million in reevnue EFTA_R1_01655968 EFTA02519671 On Thu Se 19 2013 at 4:09 PM Thomas Turrin «= href="mailto /=» wrote: Jeffrey, I revised the amount of Leon's "private use inco=e" in the attached tax treatment schedule. Using the flight hours for=2012, I calculated the average per-hour rate (dom/int I) to be $9,110. I applied that h=urly rate to the personal-use hours for 2012 (137.7). Business hours (per Apollo p=yment statements) were assumed the same. Michael Volpe of Jet Aviation confirmed that the rep=rted hours and mileage shown on their monthly statements is all-inclusive. The total amount paid by Leon to the LLC above the c=mputed flight revenue was considered capital contribution. The portion of the capit=l contribution related to operating, managing and maintaining the aircraft is shown at the bottom of t=e schedule. Until May 2013, amounts paid by the owner for management, mainten=nce, pilot costs (etc) to management company were considered to be taxable for excise =ax by IRS —this has been suspended (see below). The excise tax computed is based on business flights=- assuming all domestic flights. However, international flights (over 200 miles from =S border) are not subject to excise tax. Since much of the flight time is international, the =xcise tax could be significantly less. I'm available to discuss. 2 EFTA_R1_01655969 EFTA02519672 Tom From NBAA.... On May 16, 2013, the IRS informally announced tha= it will suspend the assessment of Federal Transportation Excise Tax (FET) on owner flights on aircraft managed by aircraft management compa=ies. In a new article, NBAA Tax Committee Member John Hoover reviews t=e implications of this suspension on assessments, summarizes meetings and =fforts by NBAA leading up to this suspension on assessments, and discusses expected future guidance from the=l RS on this issue IRS =uspends Federal Excise Tax Assessments on Aircraft Management Company Fees Gary I. Horowitz <http://www.wileyrein.com/profession=ls.cfm?sp=bio&id=489> May 21, 2013 I Airworthy Alert The Internal Revenue Service (IRS) is suspendi=g Federal Excise Tax (FET) assessments of aircraft management companies un=er audit, while the IRS develops guidance on FET specific issues affecting private aircraft operations. The Tax Code imposes a 7.5% FET on the amount =aid for domestic air transportation services provided by aircraft charter =perators and commercial airlines. FET can also be imposed by the IRS on non-commercial flight operations. Over the last several year=, the IRS has aggressively audited aircraft management companies, and has =laimed that the aircraft management fees paid by an owner to its aircraft =anagement company are subject to FET, even when the aircraft is operated by the owner under FAR Part 91. In a 2012 Chief Counsel Advice memorandum, an =ircraft owner hired a management company to oversee aircraft operations, p=id the management company a monthly management fee and reimbursed pilot employment and training costs. The IRS determined that th= management company provided taxable transportation to the aircraft's ow=er and that FET was due on the monthly management fees and pilot reimburse=ents. However, this new IRS position is inconsistent with prior guidance and creates confusion. In response, representatives of the National B=siness Aviation Association (NBAA) and National Air Transportation Associa=ion (NATA) met with IRS officials to request clear guidance on FET as applied to aircraft operated privately by owners using aircraft =anagement company services. In consideration for the concerns of NBAA and =ATA, the IRS will suspend FET assessments on current audits until the IRS =evelops formal guidance and audit standards for both future FET liability and past activity. IRS guidance is expected to be pro=ided within several months. In light of the IRS's FET activity, private =ircraft owners using aircraft management company services should review =heir arrangements to clearly establish that, for FET purposes, the aircraft owner has possession, command and control over its aircraft a=d the management company is merely acting as the owner's agent. 3 EFTA_R1_01655970 EFTA02519673 For more information, please contact <http://www.wileyrein.com/professionals.cfm?sp=bio&id=489= target=> THOMAS TURRIN, CPA</=> Partner Raich Ende Maker & Co. LLP 1375 Broadway New York, New York =0018 ext 404)</=> (Direct line)=u> (Fax)<=> (Cell)=u> Email: Website: www.rem•co.com <http://www.rem-co.com> </=> =A0 CONFIDENTIALITY STATEMENT<=pan lang="EN">: The information contained in this electronic communication, including any and all attachments and en=losures, may be privileged and is strictly confidential, intended solely f=r the use of the person(s) identified above to receive this communication.=lf you are not the person(s) identified above to receive this communication, you are hereby notified that you may =ot disclose print, copy, disseminate, or otherwise use the information con=ained herein. If you are an employee or agent of the person(s) identified =bove to receive this 4 EFTA_R1_01655971 EFTA02519674 communication and, as such, you have been authorized to deliver this communication to su=h person(s), you may disclose, print, copy, disseminate, or otherwise use =he information contained in this communication solely for the purpose of s=ch delivery. Unauthorized interception and/or use of this communication are/is strictly prohibited and may be pun=shable by law. If you have received this communication in error, please re=Iy and notify the sender (only) of that fact and delete the communication,=including any and all attachments and enclosures, from your computer or other electronic device on which you=may have received this communication. CIRCULAR 230 DISCLOSURE: To insure compliance with requirements imp=sed by the Internal Revenue Service, we inform you that any tax advice con=ained in this communication (including any and all attachments), unless expressly stated otherwise, was not intended or written to be used =nd cannot be used for the purpose of (i) avoiding tax-related penalties im=osed by the Internal Revenue Code or (ii) promoting, marketing, or recomme=ding to another party any transaction(s) or tax-related matter(s) addressed herein. This communication may not be f=rwarded (other than to the addressee(s) identified above) without our expr=ss written consent. The information contained in this communication is confidential, may be attorney-client privileged, may constitute inside information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unauthorized use, disclosure or copying of this communication or any part thereof is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved ***** t ********* *****•** ***** ••••****=***•***** ***** **an** The information contained in this communication =s confidential, may be attorney-client privileged, may constitute in=ide information, and is intended only for the use of the addressee. It is the property of Jeffrey Epstein Unau=horized use, disclosure or copying of this communication or any part th=reof is strictly prohibited and may be unlawful. If you have received t=is communication in error, please notify us immediately by return e-mail or=by e-mail to je=vacation@gmail.com <mailto:jeevacation@gmail.com> , and destroy this communication and all copies t=ereof, including all attachments. copyright -all rights reserved 5 EFTA_R1_01655972 EFTA02519675