Date: Wed, May 20, 2015 at 10:14 PM
Subject: Re: Kelley Lynch's continued attempts to intimidate Karina Von Watteville by email dated May 21, 2015 2:33 AM copied to ICE
To: Stephen Gianelli <stephengianelli@gmail.com>, "*IRS.Commisioner" <*IRS.Commisioner@irs.gov>, Washington Field <washington.field@ic.fbi.gov>, ASKDOJ <ASKDOJ@usdoj.gov>, "Division, Criminal" <Criminal.Division@usdoj.gov>, "Doug.Davis" <Doug.Davis@ftb.ca.gov>, Dennis <Dennis@riordan-horgan.com>, MollyHale <MollyHale@ucia.gov>, nsapao <nsapao@nsa.gov>, fsb <fsb@fsb.ru>, rbyucaipa <rbyucaipa@yahoo.com>, khuvane <khuvane@caa.com>, blourd <blourd@caa.com>, Robert MacMillan <robert.macmillan@gmail.com>, a <anderson.cooper@cnn.com>, wennermedia <wennermedia@gmail.com>, Mick Brown <mick.brown@telegraph.co.uk>, "glenn.greenwald" <glenn.greenwald@firstlook.org>, lrohter <lrohter@nytimes.com>, Harriet Ryan <harriet.ryan@latimes.com>, "hailey.branson" <hailey.branson@latimes.com>, "stan.garnett" <stan.garnett@gmail.com>, "USLawEnforcement@google.com" <USLawEnforcement@google.com>, Feedback <feedback@calbar.ca.gov>, mike.feuer@lacity.org, "mayor.garcetti" <mayor.garcetti@lacity.org>, "Kelly.Sopko" <Kelly.Sopko@tigta.treas.gov>, OPLA-PD-LOS-OCC@ice.dhs.gov
Stephen Gianelli,
Mrs. Von Watteville will see you in court. In the meantime you do yourself no favors by making further admissions in emails to her or by copying your correspondence to her to ICE – which is a further implied threat, since the only jurisdiction ICE would have in this matter flows from Ms. Von Watteville’s resident alien status.
One forgotten point re. your "operations." ICE has every right to know what is going on here. Leonard Cohen has committed egregious tax fraud. I've sent them the 1977 tax memo that's a blueprint for committing tax fraud. I will subpoena the mediator. Make no mistake about that. Von Watteville is the party that stated quite clearly that Robert Kory told me to sue me. It's a serious legal issue that will now be addressed with Judge Hess. I want him to see how desperate you are. So I'll submit this insane letter with declarations.
Kelley Lynch
Leonard Cohen Tax Planning Memo to Bill Dubey/Elmer, Fox, Westheimer & Co., CPAs from Ken Fratco dated August 22, 1977
Basis for Taxation
Leonard Cohen has ties with several jurisdictions which could serve as a basis for taxing income earned by him. These jurisdictions are Canada, Greece, and the United States. I would like to set-out the basis for taxation in each of these countries. Canada taxes the world-wide income of its residents. Canada defines residents as those individuals physically residing in Canada. Greece also taxes the world-wide income of its residents; however, the Greek law defines residents as those individuals who have an actual dwelling place in Greece and who are domiciled in Greece. The U.S., on the other hand, taxes both citizens and residents on their world-wide income. The U.S. definition of residents is much broader and more encompassing than that of Canada or Greece. Any individual who resides in the U.S, for other than on a temporary basis or any individual who considers himself a domiciliary of the U.S., whether or not physically present in the U.S., is considered to be a resident of the U.S. All three countries tax income from a source within their respective jurisdiction paid to non-residents; there are, however several exceptions established by treaty.
Because of the facts of Leonard Cohen’s case, a closer examination of what is considered U.S. source income and how it is taxed is necessary. Any compensation paid by a U.S. corporation is considered to be U.S. source income. If that compensation is paid in connection with the performance of personal services in the U.S. by a non-resident alien then such income is considered to be effectively connected with a U.S. trade or business and is taxed at the graduated income tax rates which apply to citizens and residents (IRC Sec. 871 (b)(1)).
If the non-resident alien does not perform personal services within the U.S. then such compensation paid will be taxable at a flat 30% rate (Reg. 1.864-3 and IRC Sect. 871(a)(1)).
Recommendations
Leonard Cohen, while remaining a Canadian citizen, should continue to reside outside of Canada. He should, however, from time to time, accomplish acts which establish Canada as his domicile - the place he truly considers his home. Such actions, of course, must not include actually staying in Canada for other than temporary, short-term trips. Because Canada only taxes individuals who are residents, continued citizenship and domicile will not subject him to Canadian taxes and will aid him in preventing taxation by the U.S. or Greece on world-wide income.
Because the U.S. taxes non-resident aliens on U.S. source income and because compensation paid from a U.S. corporation is considered U.S. source income, only royalties and performance income from services performed in the U.S. should be funneled into the U.S. corporations. Royalties and performance income from sources outside the U.S. will not be taxed by the U.S. as long as Leonard Cohen remains a non-resident alien and as long as such income is not funneled through the U.S. corporation.
Leonard Cohen’s stays in the U.S. should be continued under a non-resident visa (H-1 qualifies as such) and should be temporary in nature. Temporary residents, even of long duration, merely for the purpose of transacting business or engaging in employment is not sufficient to establish residency. Hutchins v. Commissioner, 8 TCM December 18, 178. It should be noted, however, that residing in the U.S. for one year sets up a presumption of residency. Even though such presumption may be rebutted by proper evidence Leonard Cohen’s stays should be monitored and should not extend to a year. Income from royalties and performance income outside the U.S. should be funneled through a corporation incorporated in a “tax haven” country. This will prevent taxation by the U.S. and will most likely limit withholding by other countries where royalties and performance income are earned.
As far as Greece is concerned, so long as Leonard Cohen’s domicile can be established for being elsewhere, there is no basis for taxing any income other than from Greek sources. The fact that Leonard Cohen maintains a house in Greece and will, from time to time, stay in Greece will not in and of themselves cause taxation. His trip to and ties to Greece should be reviewed periodically to prevent any presumption of domicile.
EXCERPT OF CRIMINAL STALKER STEPHEN GIANELLI'S DERANGED LETTER:
