Author: Hugh Knight

A few weeks ago, the South African media was plugging away at Jacob Zuma for not disclosing his assets, as required by the Constitution. After much legal stalling, the disclosure happened, and contained little of interest, and other stories have shoved it out our memories.

In a more developed country, another President published his annual tax return on the Web, to be read by any interested reader. That Prez was, of course, Barack Obama, head honcho of the Land of the Free.

The release did not grab headlines, as the release of tax returns is not news in the US, and presidents and vice presidents annually publish their tax returns, in the interests of transparency. Bear in mind that in the U.S., giving false information on your tax returns is a crime close to homicide.

Anything fascinating about the Obama return? Nothing startling – to summarise –

·    Gross annual income $6.1 million, including –
·    Compensation (salary) $374,460 (not much, compared to most CEOs)
·    Business income $5.1 million (author’s royalties from books)
·    Foreign income (included in business income) $1.6 million
·    Donations to 40 different charities $329,100
·    Federal Income tax paid $1.79 million

Other mildly interesting items –

Obama’s Nobel Peace prize of $1.4 million is disclosed separately and excluded from gross income, as the proceeds were donated to 10 charities, which are listed.

For a South African tax practitioner (called tax returns preparer in the U.S.), the format of the return is some interesting  –

·    The form was apparently completed by a typewriter (word processor?) with an old fashioned Pica typeface.
·    The return is 65 pages long (including 14 pages for the Illinois state return)
·    Joint return with wife (an option in the U.S.)
·    No dates of birth or social security numbers are shown
·    The only blocked out items are the banking details of the charities which received donations form the Nobel Prize.

Will we see other heads of state following the American example ? Don’t hold your breath…

Readers who want to see the Obama return, point your browser here.

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