Dutch tax adviser Frank Butselaar has been indicted in New York for plotting to hide more than $100 million from the U.S. Internal Revenue Service (IRS), the U.S. Attorney’s Office in the Southern District of New York announced on Friday. “B. thought he was above the law,” said IRS Special Agent Thomas Fattorusso, who was involved in the case. “This was not a get-rich-quick scheme, but he used some sophisticated techniques to maintain this tax scam over several years.”
The 63-year-old tax consultant from Naarden used to be the tax adviser of world-famous DJs such as Afrojack and Tiësto, as well as several TV presenters and models. The American authorities accuse Butselaar of organizing tax evasion for his wealthy clients. His involvement in the tax fraud conspiracy allegedly lasted more than seven years, according to the prosecutor’s office.
According to the U.S Attorney’s Office, Butselaar was charged with one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison, and five counts of aiding and abetting the filing of false tax returns, each of which carries a maximum penalty of three years in prison.
The prosecution stated that Butselaar, in collaboration with other professionals, devised a strategy to illegally hide millions of dollars in income from the US government. This income had been earned by his clients outside the United States during their years as US tax residents.
“As a tax advisor to many wealthy clients, B. knew that his clients were obligated to pay U.S. taxes on their income, but he ignored that obligation and chose to fraudulently hide that income from the IRS,” the prosecutor said.
Butselaar’s Dutch lawyer said this week that her client believes he acted “within the framework of all international tax laws and treaties.” “He acted within a legal framework that the tax treaties offered him,” she said, adding that “the reason for setting up these structures is to avoid the risk of double taxation.
The Dutch tax adviser had been arrested in Italy earlier this year at the request of the United States. He was taken back into custody this week after a positive extradition order, the Manhattan prosecutor said.
Reporting by ANP and NL Times