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Texas tycoon Wyly engaged in massive tax fraud, IRS tells court
Source: Reuters
US | Wed Jan 6, 2016 4:50pm EST
Texas tycoon Wyly engaged in massive tax fraud, IRS tells court
DALLAS | BY LISA MARIA GARZA
Texas tycoon Sam Wyly engaged in "lies, deception and fraud" in a years-long scheme to dodge taxes on $1.1 billion held in offshore trusts, a lawyer for the Internal Revenue Service said on Wednesday.
The IRS made those claims at the start of a trial in federal bankruptcy court in Dallas in which the agency is seeking $3.22 billion in back taxes, penalties and interest from Wyly and the widow of his late brother Charles, Caroline Wyly.
Cynthia Messersmith, a U.S. Justice Department lawyer representing the IRS, said the Wylys had since 1992 used offshore trusts to avoid paying taxes on $1.1 billion in proceeds while exercising stock options and warrants of four companies on whose boards the brothers sat.
"This is a case of lies, deception and fraud," she said. "This is not about tax avoidance but rather tax evasion."
Don Lan, the Wylys' lawyer, countered that the family "left the details to their advisers," relying on lawyers who vetted the offshore system and advised them on their taxes.
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Texas tycoon Wyly engaged in massive tax fraud, IRS tells court
DALLAS | BY LISA MARIA GARZA
Texas tycoon Sam Wyly engaged in "lies, deception and fraud" in a years-long scheme to dodge taxes on $1.1 billion held in offshore trusts, a lawyer for the Internal Revenue Service said on Wednesday.
The IRS made those claims at the start of a trial in federal bankruptcy court in Dallas in which the agency is seeking $3.22 billion in back taxes, penalties and interest from Wyly and the widow of his late brother Charles, Caroline Wyly.
Cynthia Messersmith, a U.S. Justice Department lawyer representing the IRS, said the Wylys had since 1992 used offshore trusts to avoid paying taxes on $1.1 billion in proceeds while exercising stock options and warrants of four companies on whose boards the brothers sat.
"This is a case of lies, deception and fraud," she said. "This is not about tax avoidance but rather tax evasion."
Don Lan, the Wylys' lawyer, countered that the family "left the details to their advisers," relying on lawyers who vetted the offshore system and advised them on their taxes.
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Read more: http://www.reuters.com/article/us-irs-wyly-idUSKBN0UK2J620160106