“The fact that he earned not a penny from his image and likeness in 2006, 2007, or 2008 shows the effect those allegations had, and continued to have, until his death,” Holmes wrote in the sprawling 271-page decision that tracks Jackson’s fame and finances through most of his life.
The tax fight had led to a bill of about $700 million after an audit of the 2013 taxes on the estate, whose heirs are Jackson’s mother and three children, about $200 million of it a penalty for underpaying.
A new tax bill will now be calculated using Holmes’ figures, and it will include no penalties.
Also in dispute were Jackson’s 50% stake in Sony/ATV Music Publishing, a catalog that includes 175 Beatles songs; and his interest in another catalog that includes the songs he wrote.
The IRS expert had put those assets at a combined total of about $320 million. The judge found that with Jackson’s debts, both combined were worth only $107 million at the time of his death.
The ruling, awaited for years, resolves one of the few disputes that still hovered over Jackson’s estate nearly a dozen years after his unexpected death on June 25, 2009, after a lethal dose of the anesthetic propofol.
Another was resolved a week earlier when a judge dismissed a lawsuit brought by choreographer Wade Robson, one of two men featured in the 2019 documentary “Leaving Neverland,” who alleged Jackson sexually abused him as a child. The similar lawsuit of James Safechuck, the other man featured in the documentary, was dismissed in October. The men’s attorney called the decisions a dangerous precedent for protecting children, and said they plan to appeal.