RE: Personal Tax Liabilities

Ted- I talked to Fallon about this and he said someone was going to get on it. I understand your concern. Rick

-----Original Message-----
From: Murphy, Ted
Sent: Friday, December 14, 2001 5:54 AM
To: Callahan, Timothy; Jones, Michael B
Cc: Buy, Rick; Fallon, Jim
Subject: Personal Tax Liabilities

Tim,
I have just recieved my pay stub for the period ending 11/30/01.
For the first time, it shows an incredibly disturbing number related to imputed income.
Total Earnings = $352,171
Total Earnings plus Imputed = $1,338, 394.08
Taxes withheld = $19,895.

I do not have any clue as what this imputed income is or why it may be attributed to me. However, as I understand it, I am liable for the taxes to the IRS even though I received no benefit. From our last conversation, I was told that $57k was sent to IRS to settle this amount and ?86k for uK liabilities. My calculation of the liability is much higher - somewhere in the neighborhood of 40% x 1,338,395 or $535,358. Please give me a full accounting of the taxable liabilities incurred by Enron on my behalf for the tax year 2001 for both the us and uk and the tax payments made. I would appreciate that this could be done in the next 24 hours as it is causing immense stress.

I also spoke to PWC in the UK 2 minutes ago who told me that they were not doing any work for Enron at the moment.

Ted