Rarely do private companies find themselves punished for using #shell #companies to move capital and avoid taxes.

The fine accountants at Ernst & Young cooked up a complicated scheme in 2008 for a restructuring of #Koch #Industries via shell entities in Luxembourg,
a notorious tax haven, with the reasonable expectation that the ruse would never be revealed.

But then someone leaked a raft of private documents from #Mossack #Fonseca, a law firm in Panama that specializes in the creation of shell companies.

The info dump became known as the #Panama #Papers, and among its many revelations was Koch Industries’ bid to reinvent parts of the company, on paper,
as tax-avoidant Luxembourg shell companies.

According to the Center for Public Integrity, the essence of the Koch Industries deal was to
“reorder the ownership of many subsidiaries and centralize them under Luxembourg companies that are all served by internal corporate finance companies,
akin to a company’s own bank.”

Maybe that’s where the Koch siblings got the idea to get behind #DonorsTrust
—a sort of house bank for the array of political entities and think tanks they fund.

Of course, as with all of the organizations funded by Koch, they’re not in it alone.

#Betsy and #Dick #DeVos helped fund DonorsTrust, according to Mother Jones.

And then there are the many Koch-network “pass-through” groups, such as "Freedom Partners"
and the "Center to Protect Patient Rights",
which function much the way that shell companies do in the world of private capital:
-- they add layers of obfuscation over the provenance of the dollars flowing from one right-wing organization or institution to the next.

For instance, there’s the #Wellspring #Committee,
a pass-through funded in part via the Koch network, whose director, Ann Corkery, also sat for six years on the board of the #Becket #Fund for #Religious #Liberty,
a pro-bono law firm, according to tax filings.

With its portfolio of so-called religious freedom cases,
the Becket Fund gained notice as the firm representing the principals of the #Hobby #Lobby company in
a 2014 Supreme Court challenge to a mandate in the Affordable Care Act
for employer-based health insurance to cover,
without a co-pay, the costs of prescription #contraception.

One type of private company is the “#closely #held” variety, which may occasionally trade stock publicly, but has only a few shareholders.

The Supreme Court’s decision in favor of Hobby Lobby (number 106 on the 2016 Forbes list of the nation’s top private companies) specifically cited its “closely held” status as a qualification for its exemption from the ACA contraceptive mandate.

A super PAC closely linked to House Speaker Mike Johnson (R-La.)
is putting money into defending former House Freedom Caucus Chair #Scott #Perry (R-Pa.)
for the first time this election cycle.

Why it matters:
Polls suggest the race is highly competitive,
and a PAC tied to House Minority Leader Hakeem Jeffries (D-N.Y.)
has already put millions into supporting Perry's Democratic opponent, #Janelle #Stelson.

Stelson has also been clobbering Perry in fundraising, besting him by more than $2 million between July and September, according to Federal Election Commission filings from both campaigns.

Driving the news:
The Johnson-affiliated Congressional Leadership Fund put more than $200,000 into ad reservations in Pennsylvania's 10th district on Tuesday, according to ad tracking firm AdImpact.

CLF had not spent anything in the district as of this weekend, though its nonprofit arm American Action Network put $500,000 into ads supporting Perry.

Perry's primary bases of support so far have been House Freedom Action
— the political arm of the House Freedom Caucus
— and Win It Back PAC, which have spent over $600,000 and $900,000 for him, respectively.

By contrast, Democrats' House Majority PAC has spent nearly $2.5 million on ads,
on top of $2.1 million from Stelson's campaign and nearly $1 million from the Democratic Congressional Campaign Committee.

Zoom in:
CLF's ad reservations were shifted from Eighteen Fifty-Four Fund,
a Republican group that still has nearly $2.1 million reserved in the district.

That suggests that House Republicans are poised to make a far deeper investment than their initial $200,000 ad buy.

Republican strategists have insisted to Axios that they don't see the race as competitive, but Democrats said they expected the GOP to invest more heavily there after a poll showed Stelson leading by 9 percentage points.

Between the lines:
Perry has been a thorn in the side of both Johnson and his predecessor, former Speaker Kevin McCarthy (R-Calif.), as the former chair of the House #Freedom #Caucus.

The right-wing group has led numerous revolts against leadership over government spending and the debt ceiling, even forcing McCarthy to go through 15 grueling ballots to be elected in January 2023.

But Johnson has appointed Perry to the prestigious #House #Intelligence #Committee and campaigned in his district,
with Perry's campaign saying they have gotten everything they've needed from the GOP establishment.

https://www.axios.com/2024/10/15/mike-johnson-scott-perry-freedom-caucus