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Chinese-backed charity may be violating U.S. law, tax specialists say

Source: 
Reuters
Author: 
Steve Stecklow, Renee Dudley and James Pomfret
Date: 
Friday, October 14, 2016

“A New York educational charity affiliated with a Chinese company may have violated rules governing tax-exempt organizations in the United States, tax specialists say.


The Council for American Culture and Education Inc was set up in 2009 on behalf of Chinese for-profit school operator Dipont Education Management Group, according to the two consultants who created the charity. Thomas Benson and Stephen Gessner later ceded control of CACE to Dipont, according to Gessner.

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Bruce R. Hopkins, a law professor at the University of Kansas, said the relationship should have been fully disclosed. ‘Being so closely tied to a for-profit and functioning to benefit it in so many ways – that could be a problem for them,’ said Hopkins. ‘The consequences could be that they lose their tax-exempt status.’”
 

Faculty name: 
Bruce R. Hopkins