Frank Butselaar, also known as the ‘star taxman’, was arrested last night by the Italian police at the request of the United States. The FD reports it today. Butselaar was a tax consultant for DJ Tiësto, Afrojack and various TV stars, for example, and he is said to have helped them evade taxes.
According to the American authorities, the crux lies in the way Butselaar has set up payment structures for artists who have worldwide income. “This concerns people who spend more time abroad than at their place of residence,” explains FD journalist Bart Mos. “These structures were established in Cyprus to avoid double taxation. But the US taxman sees it differently.”
“He devised a structure that would prevent people with worldwide income from having to pay double taxation”
Payments to the artists therefore went largely through Cyprus, says Mos. “Income from performances in Hong Kong or Melbourne, for example, has to be paid locally first, with the rest going to Cyprus,” he continues. “Although the United States also wants some of it.”
Extradition
Where the Americans are very keen to challenge this, the Italian authorities arrested Butselaar. However, Mos believes that the actual extradition procedure is a formality. “He will certainly be extradited, as the Italian court already established yesterday,” says Mos. “Yesterday he was arrested and put in jail to prepare his extradition.”
Butselaar is expected to be extradited to the United States within a month, and Mos says he’s not going to have a pleasant time. “I’ve heard from stories that the prison he’s going to in New York isn’t funny,” he concludes. “There he will remain in custody for a long time, because Butselaar’s American lawyer predicts that the case will only be substantially treated in two years.”
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
