Exactly. Presuming a 50% tax (highest end worldwide) rate and a full write off they spent 50 mil to save 42.5 mil on taxes.

Usually it’ll be capital gains income where they would be writing off which is a much lower rate. Example 20% in which case they saved 15 mil in taxes for 50 mil investment.

first 20% goes to gift aid in the UK so some countries you wouldnt even get full tax band.

Now tax free storage of art usually in ports is interesting but not some 100% write off scheme.

What'd be the alternative if you had not done the 50m -> 75m trick? Pay x$ more in taxes?

The implication is that they do it purely for tax relief and not as an appreciating asset.

If that was the case they would be losing millions each transaction.

Yeah this makes zero sense. Unless this is not about saving taxes, but money laundering.

They spent 50 million in cash, received 42.5 in tax credits, and made a donation of 75 million. So effectively, they made a 75 million donation for 7.5 million outlay. It's a very efficient way of making donations, but it doesn't make you better off in raw cash terms.

But being rich is not about having cash, it's about using cash to achieve your ends. Giving 75 million is really buying 75 million worth of philanthropy - 75 million worth of social status, or invites to exclusive parties, or favours from patrons, or support for projects valuable to them. And they bought it for only 7.5 million!

There are social benefits as well. Not only did you get to dodge some tax, you got to make a donation to a museum, they'll throw you a little party, you get to meet the mayor, etc etc