Thursday, May 30, 2019

INDEX

Vol. CXXVIII, No. 111
 © 2019 The Michigan Daily 

NEWS ....................................
OPINION ............................... 
ARTS.......................................
MiC.........................................
SPORTS................................

MICHIGAN IN COLOR
Heritage

Samuel So creates a 

44-page zine for APIA 

Heritage Month called 

SAMPLR

 
 >> SEE PAGE 9

NEWS
Boba

Students reflect on

popularity of boba drinks 

with new stores

>> SEE PAGE 2

OPINION

Authoritarianism 

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

SPORTS
Women’s tennis

Seniors Kate Fahey and Bri-

enne Minor’s improbable 

run in the NCAA Doubles 

Championship

>> SEE PAGE 10

inside

2
4
6
9
10

Federal court reaffirms Ross 
overstated property value

Court of Appeals 
upholds Tax Court 
ruling on charitable 
tax deduction

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.

Academics talk
collaboration in 
higher education

Town Hall examines 
integration strategies 
for STEM, arts at ‘U’

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. 

ONE HUNDRED TWENTY-EIGHT YEARS OF EDITORIAL FREEDOM

Read more at michigandaily.com

OLIVIA SCOTT
Daily Staff Reporter

ALEX HARRING
Summer Managing News Editor

Read more at michigandaily.com

michigandaily.com

Design by Kathryn Halverson

