Avoiding tax can lead to a longer life?

Go to Wikipedia and look at the list of the verified oldest people and coming in first is Jeanne Calment, who it is claimed was born on 21 February 1875 and passed away on 4 August 1997 at the ripe old age of 122 years, 164 days.

What was the secret of her long life? It appears it may have been tax fraud!

It is now claimed that Mrs Calment died in 1934 and her daughter, Yvonne, then pretended to be her mother from that time. The daughter’s name was put on the death certificate rather than her mother’s name. So why would the family do this?

At the time of the death, Mr and Mrs Calment owned 50% each of a very successful, multi story department store, and if she died in 1934, 50% of the value of the entire business would have been taxed at what was an amazingly high inheritance tax rate of 38%.

In other words, if Mrs Calment did die in 1934, Mr Calment would have been the 100% owner of the business, but he would need to find cash equalling 19% of the business’ value to pay in inheritance tax.

So, it is alleged that to save a great deal of tax, they made sure the correct person died.

I have no idea if this is what happened, as it is denied by the researchers who confirmed her age at her death, but I am pretty sure there are people who would go this far to avoid some tax.

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About Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.
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