Bloomberg: Dutch tax advisor assisted celebrities in evading American taxes

According to Bloomberg, Frank B., also known as the ‘tax expert of the stars,’ has been arrested by the Italian police at the request of the United States. B. is known as a tax advisor for prominent figures like DJ Tiësto, Afrojack, and various fashion models. He is accused of helping them circumvent their US tax obligations.

Income concealed from the US tax authorities

The Internal Revenue Service, Criminal Investigation (“IRS-CI”), has announced that Dutch tax advisor Frank B. is charged with “conspiracy against the US government.” Over a period of seven years, he allegedly concealed a total of $100 million in income from wealthy clients from the US tax authorities. This news follows Italy’s recent decision to extradite B. to the United States.

The charges in the United States are said to involve internationally renowned celebrities, including DJs Afrojack and Tiësto, and three fashion models who have lived or are still living in the United States. In the past, B.has set up “structures” in Cyprus to prevent these celebrities from having to pay double taxes.

Conspiracy and falsifying US tax returns

The New York state prosecutor alleges that the tax expert engaged in conspiracy through the Cyprus route with the aim of deceiving the US tax authorities.

Additionally, B. is accused of five counts of contributing to the filing of false US tax returns. The first offense carries a maximum penalty of five years, while the other offenses each carry a maximum penalty of three years.

B. is expected to be extradited to the United States within a month. However, B.’s US attorney anticipates that the case will not be substantively addressed for another two years.

The importance of the right US tax specialist

Every year, various individuals, whether wealthy or not, seek the services of a competent US tax advisor. Such advisors should have extensive experience in filing US tax returns, taking into account the various double tax avoidance agreements that the Netherlands has established with the US.

Mistakes in this area can lead to stressful and costly problems. Americans Overseas, in their recent blog post, outlines the qualifications that a US tax advisor should possess.

Americans Overseas has built a broad network of tax advisors capable of handling any financial complexity. Feel free to contact us for a referral to the appropriate and affordable specialist.

Americans Overseas

We, the founders of Americans Overseas, were born in the Netherlands and obtained American nationality through our (American) mother. When we heard about this for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fined or pick up other problems?), and panic (what should I do?).

It is (unfortunately) true that there is an additional American tax levy. But there’s no information from the local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.

That’s why we started this initiative to help people from all over the world by providing proper information to avoid unnecessary panic and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations.

If you have more questions about the US exit tax and the US tax obligation, you can contact us at Americans Overseas.

Contact us for more information

Sources:

• Justice.gov
• Bloomberg
• Het Financieele Dagblad