Massachusetts residents, like others, are required to pay a certain portion of their income in taxes or risk punishment. While arrests for income tax evasion are not common, they do occur from time to time. The Department of Justice reports that a couple in the Caribbean have been indicted for concealing money in offshore bank accounts in order to defraud the Internal Revenue Service.
The married couple, both of whom are doctors, are said to have concealed millions in assets in foreign banks and conspired with another individual to hide these assets from the IRS. At one time, the couple were directors of two Caribbean-based schools of medicine, and the husband had a stake in one of the schools until it was sold. The Department of Justice claims that the two created ‘nominee entities” and undeclared bank accounts in order to conceal income, including the sale of the medical school.
The total amount hidden from the real estate sale is said to be $33 million, the proceeds for which were deposited into one of the undeclared accounts. The indictment also states that the couple used telephone calls, emails and meetings to give instructions to asset managers and bankers on how to handle the money. They purchased a private plane, two homes and a condominium as well as transferring at least $1 million to relatives.
The couple has been charged with filing false returns in 2005, 2006, 2007 and 2008. Each charge carries a potential penalty of three years in prison and $250,000 in fines. The conspiracy charge carries a maximum of five years and a $250,000 fine. Those who are faced with filing taxes on foreign earnings must be sure that they correctly report income and file all necessary forms. A tax law attorney may represent those who have filed questionable returns or who have issues with income tax filings.
Source: Caribbean 360, “US doctors indicted for federal tax crimes in the Caribbean“, May 28, 2013