WASHINGTON – The Humane Society of the United States today praised the U.S. House of Representatives for passing legislation before adjourning for recess that would close a loophole in the tax code which enables a major taxidermy tax scam allowing hunters to deduct the costs of hunting trips. This move by Congress would save rare wildlife around the world and save American taxpayers an estimated $43 million over the next decade.
H.R. 4, the new Pension Protection Act, includes a provision that would stop unethical trophy hunters from sticking American taxpayers with the bill for their hunting vacations. The pension bill passed the House by a vote of 279 to 131 late Friday night, and the Senate is scheduled to vote on the legislation this week. The HSUS is calling on the Senators to pass the provision.
"The safari swindle involves a big-game hunter shooting an exotic animal in Asia, in Africa, or at a drive-through 'canned hunt' here in the United States – and writing off his hunting trip at the expense of the IRS and American taxpayers," said Michael Markarian, executive vice president of The Humane Society of the United States. "The trophy hunting boondoggle bilks the federal Treasury of millions of dollars, and encourages more killing of wildlife, including rare species. This is fraud, and Congress needs to make the law unambiguous to deter individuals from engaging in this tax dodge."
A two-year investigation by The Humane Society of the United States revealed that some trophy hunters are shooting rare animals around the world and donating their mounted prizes to phony museums in order to take a tax deduction. It doesn't matter if the pseudo-museum is set up in the hunter's own living room. Investigators even found 800 "donated" trophy mounts gathering dust in an old railroad car.
The tax deductions are engineered by unscrupulous trophy appraisers that advertise with slogans like "Hunt For Free," "Hunting in a Tight Money Economy," and "7 Secrets of Tax Deductible Hunting." The appraisals of trophy animals are extraordinarily generous, and often made by viewing photos, never seeing the actual mount. By calculating the cost of airfare, guide fees, licenses, hunting permits, skinners, trackers, shipping, taxidermy, tips for guides and other expenses, each hunt can pay for the next. In an ironic twist, the more animals that are hunted, the more rare the species becomes, and thus the higher "replacement value" of the animal and tax break to the hunter.
To curb this abuse, Senator Charles Grassley (R-Iowa), Chairman of the Senate Finance Committee, has advocated for language specifying that trophy mount donations must have "comparable sales data" to accompany IRS tax forms claiming the donation. So instead of claiming the cost of flying to Africa to kill an antelope and writing off the expense of the trip, a donor could only claim what it would cost to buy the antelope trophy on the open market, a figure that will be considerably less. For donations valued at more than $5,000, donors would have to obtain an appraisal by the IRS Art Board or by a certified agent, again using comparable sales figures.
"There's nothing charitable about shooting rare animals and calling your living room a 'museum,'" said Markarian. "We are grateful to Senator Grassley for exposing this loophole and to the House for including the language in the pension bill. The Senate should follow the House's lead and stop giving wealthy trophy hunters a free ride on the backs of American taxpayers."
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The Humane Society of the United States is the nation's largest animal protection organization with more than 9.5 million members and constituents. The HSUS is a mainstream voice for animals, with active programs in companion animals, disaster preparedness and response, wildlife and habitat protection, marine mammals, animals in research, equine protection, and farm animal welfare. The HSUS protects all animals through education, investigation, litigation, legislation, advocacy and field work. The nonprofit organization is based in Washington and has field representatives and offices across the country. On the web at www.hsus.org.
