Thursday, May 30, 2019
ONE HUNDRED TWENTY-EIGHT YEARS OF EDITORIAL FREEDOM
inside
Academics talk collaboration in higher education
NEWS
Boba
Students reflect on popularity of boba drinks with new stores
Town Hall examines integration strategies for STEM, arts at ‘U’
>> SEE PAGE 2
OPINION
OLIVIA SCOTT
Authoritarianism
Daily Staff Reporter
Zack Blumberg writes about the insidious rise of subtle authoritarianism >> SEE PAGE 5
ARTS
New Tyler album Heartbreak makes a monster out of Tyler, the Creator on “IGOR” >> SEE PAGE 6
MICHIGAN IN COLOR
Heritage
Samuel So creates a 44-page zine for APIA Heritage Month called SAMPLR
>> SEE PAGE 9
SPORTS
Women’s tennis Seniors Kate Fahey and Brienne Minor’s improbable run in the NCAA Doubles Championship >> SEE PAGE 10
INDEX Vol. CXXVIII, No. 111 © 2019 The Michigan Daily
NEWS .................................... 2 OPINION ............................... 4 ARTS....................................... 6 MiC......................................... 9 SPORTS................................ 10
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Federal court reaffirms Ross overstated property value Court of Appeals upholds Tax Court ruling on charitable tax deduction ALEX HARRING
Summer Managing News Editor
On Friday morning, the U.S. Court of Appeals upheld the judgement in a case involving alleged tax evasion by Stephen M. Ross, University of Michigan alum and benefactor for whom the Ross School of Business and Stephen M. Ross Academic Center are named. Ross and business partners are accused of overstating the value of property donated to the University in a charitable tax deduction by the Internal Revenue Service. In the case, the billionaire and real estate developer, along with a group of business associates, donated property — a Southern California building which housed
a data center — to the University to fulfill a gift. The University then resold the property for almost $2 million in cash to satisfy the gift requirement, and the $2 million eventually grew to $5 million. Though the property was appraised in 2017 for $3.4 million, Ross and his affiliates claimed a charitable tax deduction of $33 million, meaning they claimed the property was worth nearly $30 million more than its real value. The IRS uncovered this claim and has since imposed a 40% penalty for underpayment of tax — a penalty upheld by the Court of Appeals. The University has contended its innocence in this situation. In 2017, University spokesman Rick Fitzgerald said the University was not found at fault, and he said Friday afternoon the University has no change in comment. “During the course of this case, which dates back more than a decade, neither the Internal Revenue Service nor the U.S. Tax
Court found any fault with the university’s receipt or handling of this donation from Stephen Ross,” Fitzgerald wrote. “University officials were called as potential witnesses, but in June 2015 were released prior to testifying, as the parties determined that university officials had nothing to add to the case.” Fitzgerald affirmed the transaction of the property was reviewed by tax experts and legal counsel. Ronald Katz, Ross’ former tax accountant, and Harold Levine, a lawyer who helped with the donation, were charged with felony obstruction and tax evasion respectively, though both cases are unrelated to Ross’ current legal situation. Ross and his partners, listed under RERI Holdings, faced their latest loss in the case Friday when the Court of Appeals upheld the prior judgement of the Tax Court.
Read more at michigandaily.com
On Tuesday morning, about 70 people gathered in the Michigan League for “Branches from the Same Tree: A U-M Town Hall on the Integration of Arts, Humanities, and STEMM.” The event focused on discussing how to best work towards a more integrative environment between the different academic communities on campus. The campus-wide town hall was hosted by the University of Michigan President’s Office, Provost’s Office, ArtsEngine and Alliance for the Arts in Research Universities in partnership with the National Academies of Sciences, Engineering and Medicine. Rebecca Cunningham, associate vice president for research and health sciences, opened the event by introducing the challenges integration can help tackle. Tom Rudin, director of the board on higher education and workforce at the National Academies for Sciences, Engineering and Medicine, held a demonstration where attendees had Monopoly money representing University funding. Participants put the mock money into a basket of their choice representing possible funding recipients. Most of the attendees put their mock money in baskets about increasing interdisciplinary collaboration, setting the tone for an event focused on innovative ways to integrate the arts and humanities with STEMM. When the floor opened for questions, many people voiced opinions on different aspects of the exercise. Some expressed time and space are resources just as valuable as money. Marvin Parnes, interim executive director of the alliance for the arts in research universities, brought up a point about integration that became a main theme over the duration of the event.
Read more at michigandaily.com