White Plains, NY — A high-stakes legal battle over millions in unpaid taxes saved through offshore tax shelters is underway, pitting U.S. federal prosecutors against a prominent Dutch tax attorney. The case revolves around renowned DJ Tiesto, who was reportedly saved $28 million by the elaborate schemes his tax lawyer orchestrated.
The focus of the federal court arguments in White Plains is Frank Butselaar, a tax consultant who specialized in catering to Dutch celebrities and renowned for creating sophisticated tax avoidance structures. Court documents reveal that Butselaar set up a network of offshore entities that shielded millions in U.S. taxes for Tiesto from 2012 to 2017.
Although Tiesto, whose real name is Tijs Verwest, was not charged and reportedly unaware of the illicit nature of the tax arrangements, he has since voluntarily paid the IRS $9.4 million covering part of his tax liabilities. However, Butselaar now faces the possibility of being held personally responsible for the remainder, amounting to nearly $19 million.
The dynamic around this case sheds light on the pressures and pitfalls often faced by high-earning entertainers in managing their finances across international borders. Prosecutors argue that Butselaar, who earned considerable fees for his services, should bear responsibility for the full extent of the tax losses incurred by the U.S. treasury.
During court proceedings, defense arguments emphasized that Butselaar is financially incapable of covering the restitution, mentioning his primary asset is a modest home in Italy. His legal team contested that Tiesto, as the primary earner, should be liable for any remaining tax obligations — not Butselaar, who was merely acting in a professional advisory capacity.
The prosecution counters this position by highlighting the deceptive nature of Butselaar’s practices, including the establishment of trusts with straw beneficiaries in locations like Cyprus and Guernsey. These trust structures enabled the hidden flow of overseas earnings, which U.S. law requires to be reported by taxpayers residing in the country for certain periods.
Tax law experts note that the case against Butselaar could set a precedent in how tax preparers and advisors are held accountable in schemes aiming to defraud the IRS. Historical cases cited in the court saw significantly lower amounts demanded in restitution, magnifying the exceptional nature of the current $19 million claim.
As the legal battle unfolds beneath the chandeliers of the federal courtroom, broader questions loom about the due diligence and ethical boundaries of tax advisory services, particularly when dealing with clients whose financial matters span the globe.
Analysts following the proceedings argue that such high-stakes tax evasion cases illustrate the growing scrutiny of financial conduct and the serious consequences of flouting tax laws, even when celebrity clients like Tiesto unknowingly benefit from potentially illegal advice.
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