Many private investigators and attorneys search for hidden, offshore accounts. Sometimes the money or other assets are hidden from a spouse in preparation for a divorce. Sometimes money is shuffled offshore to evade taxes. Tax evasion is a federal crime, as we all know. It is even a felony, too.
Helio Castroneves, a U.S. resident and two-time winner of the Indianapolis 500, was recently indicted by a grand jury on charges of conspiracy to defraud the United States of income taxes and with six separate counts of income tax evasion for tax years 1999 through 2004.
His sister and business manager, Katiucia Castroneves of Miami, and his attorney, Alan R. Miller of Michigan were also indicted. The crime, using an offshore Panamanian shell corporation to fraudulently conceal income received from business deals. Helio Castroneves received $6,000,000 in a three year contract, kicked back $5.4 million, kept $600,000 and only reported $50,000 on his federal income tax returns. Well, with that the IRS and the US Justice Department got busy.
In another scheme, like one was not enough, the three defendants hid $5,000,000 in an offshore “deferred royalty plan.” It is a complicated scheme, legal under certain circumstances, but not legal in the way these three carried out the scheme. The bottom line is that Helio earned the $5,000,000, allegedly lied about his control over the money and did not report any of the money as income. Well, the IRS jumped on that one too.
Take note of the governments statement on this story:
“Taxpayers, small and large, famous and not famous, should be aware of the enormously severe consequences they face if they fraudulently use offshore accounts to hide income, including potentially going to prison, paying back all their taxes plus interest and penalties, and being branded a felon for the rest of their lives,” said Nathan J. Hochman, Assistant Attorney General of the Justice Department’s Tax Division.
“Whether one makes a living parking cars or racing them, paying taxes is a responsibility that everyone shares. Our tax laws apply equally to everyone, regardless of status, class and income, and the U.S. Attorney’s Office will prosecute these cases vigorously,” said U.S. Attorney Acosta.
Hey, read the whole story: Click Here
But, remember to play straight with income and paying taxes. You do not want the IRS and/or the US Justice Department involved in your life.
In my next post I will talk about Switzerland disclosing secret bank account information to the IRS and the US Department of Justice.