EFTA01786160

From: Melanie Spinella Sent: Tuesday, Septembilli.l A ll To: 'Jeffrey Epstein' Subject: RE: Petition for Advisory Opinion Jeffrey —he is in back to back meetings most of the day — I will give him the message. From: Jeffrey =pstein (mailto:[email protected]) Sent: Tuesday, September 24,=2013 10:41 AM To: Melanie Spinella Subject: Fwd: Petition for Advisory Opinion please call me Jeffrey, I revised the draft Petition to include the language you asked for-=all noted in bold black font and enclosed in brackets, namely: (i) langua=e referencing the trust's grantor trust status for Federal income tax purpose=, (ii) a statement that sales tax was paid upon initial purchase of the TPP a=d (iii) references to the Substitution Power constituting a non- fiduciary administrative power. As you know, Alan and I would prefer not to include the foregoing references. References (i) and (iii) do not add to the lack of consideration argument and may inadvertently trigger a second look at the Rothstein case and the State's willingness to follow Rev. Rule 85-13 instea= of Rothstein (which is still good Federal law for NY State tax purposes). &nbs=;lf that happens, it could mean that transactions between a grantor and his gra=tor trust would constitute sales for New York State income tax purposes. Needless to say, that would be a disastrous resu=t. Even if this is a very remote scenario, there is no reason to =ave a red flag (even a tiny one) in front of a very big bull if we gain nothing from it. I would therefore exclude references to the IRC and the grantor trust provisions. The reason for excluding reference (ii) is noted below.aspan> The bracketed and bold language in Red is language I included to address the use tax issue but which I believe Alan was not completely comfortable with. Alan--have you thought more about this?<=span> Please let me know if you need any further revisions. Best regards, gspan> On Sep 24, 2013, at 9:36 AM, Ada Clapp EFTA_R1_00108772 EFTA01786160 Good morning Jeffrey, I addressed your two points in my email yesterday. Perhaps yo= missed it (or I missed your response). I will reiterate below:</=:p> I do not think we should mention that sales tax was paid by the gra=tor for the reasons we discussed relating to our not applying for the opinion i= the first place. I don't think we want that to be a determinative factor in=the ruling. I worry that it opens the door for a fishing expedition if NY ever looks into such a reacquisition. If still want it included in the Petition and it does become a determinative factor to issuing the opinion, =t means that a grantor will only be able to substitute art for which he or sh= can prove sales tax was paid. I would rather not have that limitation= Alan agrees with this view =o you want this included nonetheless? Regarding the administrative powers language, the Petition quotes t=e entire trust language which states that the grantor is exercising the power=in a non-fiduciary capacity. I don't see what traction is gained by sim=ly repeating this as part of the argument for a favorable opinion. What =s your reasoning for why this bolster the lack of consideration argument? &nb=p;Please explain so I know what argument you are =rying to make and can include it in the Petition. Ada=b> Clapp Black Family Partners c/o Apollo Management 9 W 57th Street New York NY 10019 IRS Circular 230 Disclosure:=/font> Pursuant to IRS regulations, I inform you that any t=x advice contained in this communication (including attachments) is not inten=ed or written to be used, and cannot be used by any person or entity for the purpose of (i) avoiding tax related penalties imposed by any governmental t=x authority, or (ii) promoting, marketing or recommending to another party an= transaction or matter discussed herein. I advise you to consult with an independent tax advisor on your particular tax circumstances. This communication, and any attachment, is for the intended recipient(s) only and may contain information that is privileged, confidential and/or proprietary If you are not the intended recipient= you are hereby notified that further dissemination of this communication an= its attachments is prohibited. Please delete all copies of this communication and its attachments and notify me immediately that you =ave received them in error. 2 EFTA_R1_00108773 EFTA01786161 =/span> On Sep 24, 2013, at 9:27 AM, Jeffrey Epstein <[email protected]=m <mailto:[email protected]> wrote: you did not include the fact that sales tax has been paid, already on the ites, and that he is actingin a non fircualrty capacity = please re do =/span> this didn't incoude the last changes non fidiciary, , sales tax alre=dy paid.etc =/span> Jeffrey, The form is set up so that you cannot save it as a document in edit=ble format. Whomever is representing your client and submitting the Petit=on on his, her or its behalf will either need to (i) print out the form =nd type in the information (using an Attachment), or (ii) type most of the information into the form online and save it as a PDF document (the form is=not flexible enough to include the lengthly response to item 4, so your representative will need to use an Attachment). The PDF document can =e printed and submitted with the Attachment. </=> I have attached what your client's representative may wish to use a= responses to items 1-4. Item S addresses additional redacting you may wish for your client =f you include any information other than what is on the attached draft Petition. Item 6 relates to reserving your client's right to participate in <=t1:State w:st="on">New York's Volun=ary Disclosure and Compliance program with respect to the subject of the adviso=y opinion. As you may know, this program is designed to encourage taxpa=ers to come forward and declare unpaid taxes in exchange for NY not imposing penalties or bringing criminal charges. I do not know if there is any downside to reserving the ability to participate in the VDC program-- but i= would only apply to sales and use tax relating to your client's having substitute= tangible personal property into a grantor trust in exchange for other prope=ty. If your client has not done this, perhaps it makes no sense to reserv= this right. I am not sure if it "looks suspicious" to check this box. Perhaps Alan has a bett=r feel for this? Ada=b> Clapp Black Family Partners c/o Apollo Management 9 W 57th Street New York NY 10019 3 EFTA_R1_00108774 EFTA01786162 IRS Circular 230 Disclosure:=/font> Pursuant to IRS regulations, I inform you that any t=x advice contained in this communication (including attachments) is not inten=ed or written to be used, and cannot be used by any person or entity for the purpose of (9 avoiding tax related penalties imposed by any governmental t=x authority, or (ii) promoting, marketing or recommending to another party an= transaction or matter discussed herein. I advise you to consult with an independent tax advisor on your particular tax circumstances. This communication, and any attachment, is for the intended recipient(s) only and may contain information that is privileged, confidential and/or proprietary If you are not the intended recipient= you are hereby notified that further dissemination of this communication an= its attachments is prohibited. Please delete all copies of this communication and its attachments and notify me immediately that you =ave received them in error. 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 [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved=/font> 4 EFTA_R1_00108775 EFTA01786163 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 [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved=/font> 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 [email protected] <mailto:[email protected]> , and destroy this communication and all copies thereof, including all attachments. copyright -all rights reserved=/font> This email and any files transmitted with it are confidential and intended solely for the person or entity to whom they are addressed and may contain confidential and/or privileged =material. Any review, retransmission, dissemination or =other use of, or taking of any action in reliance upon this information by persons or entities other than the intended =recipient is prohibited. If you have received this email in =error please contact the sender and delete the material from =any computer. Apollo Global Management, LLC =0 5 EFTA_R1_00108776 EFTA01786164