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Once the reincorporation of a US company was complete, Elsa’s subsidiary corporation would have to pay corporate income tax to the IRS and to the State in which the corporation’s assets were located. However, Elsa’s subsidiary corporations were owned and managed by Smith-Adler Enterprises. Smith-Adler Enterprises charged its subsidiary corporations for the support they provided to the subsidiary corporations at a very high hourly rate. The subsidiary corporations added their management costs for managing their US assets, which were also high, to Smith-Adler Enterprises’s management costs. The net result was, a significant reduction in the income tax the subsidiary corporations paid to the IRS and States in respect to the taxes Elsa’s companies had paid prior to the reincorporation.The last thing of interest that happened before I returned to the US to sign dissolution papers was Elsa made a new Will and registered it in the Cayman Islands. Except for a few relatively minor bequests. It was another of those moments I wished my father had not been overseas with his regiment; but here in command, as the man of the house; who would soon put this female in her place.Mother returned from the kitchen, saying hesitantly, “There now ... perhaps the Matron will explain to you both what she has called for.”Matron gave a cold smile and spoke in a cultured voice, “Thank you Mrs Anderson; now Sherry and James, you are both entering a phase of your development known a puberty; did you realise that?”The Matron smiled at each of us with a raised eyebrow.As both of us remained dumbstruck she continued, “Well that means that your regular physical growth is supplemented with the start of a sexual growth.In a girl this will entail the formation of her breasts and the beginning of her periods which is all part of becoming a young woman who can produce a baby. Did you know that Sherry?”My sister’s face had blushed-up with embarrassment as she mumbled a feeble acknowledgement.“And you.
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