Keith Tucker, the former chief executive officer of Waddell & Reed who has been charged with evading $1.2 million in Kansas City, Mo., taxes, testified that was never his primary residence.

The city, however, maintains that was his residence, as Tucker headed Waddell & Reed, headquartered in Kansas City, between 1999 and 2003 and owned a mansion there. During that period, in which he earned $74 million, Tucker didn't pay Kansas City taxes but said his official residence was in Dallas. Tucker has also said that the city's definition of "resident" is vague.

Tucker testified to these points again, adding that even if he were deemed to have been a resident of Kansas City, he only earned $8.3 million during the time he lived there and, therefore, would owe $83,000 in taxes, not $1.2 million.

Separately, the Internal Revenue Service has also charged Tucker over taxes, saying he and his wife took $39.2 million in sham tax shelter deductions.

The judge has given the prosecution and the defense until Dec. 18 to submit proposed findings of fact and conclusions of law.

(c) 2006 Money Management Executive and SourceMedia, Inc. All Rights Reserved.

http://www.mmexecutive.com http://www.sourcemedia.com

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.