Posted on 03/01/2005 3:41:31 PM PST by anymouse
The government announced the indictment and arrest of space tourism and telecommunications entrepreneur Walt Anderson, accused of evading $200 million (euro151 million) in federal and local taxes, the largest U.S. criminal tax case ever filed against an individual.
Anderson, chief executive officer of Orbital Recovery Corp., was accused of hiding income by using offshore corporations in the British Virgin Islands and Panama and a mailbox in the Netherlands.
The indictment announced Monday charged the 51-year-old Anderson with hiding income from tax collectors through offshore corporations and bank accounts and claiming to be a resident of the state of Florida to avoid paying income taxes in Washington, D.C. Residents of Florida pay U.S. income tax but no state income tax.
Anderson also allegedly purchased fine art and wine and had it shipped to Virginia to avoid paying Washington, D.C., taxes, according to the indictment returned by a federal grand jury that alleged fraud, tax evasion and obstructing government tax collectors. Anderson was arrested Saturday.
An indictment naming charges against a defendant is a first step toward prosecution.
"He was living the high life," said Mark Everson, commissioner of the Internal Revenue Service, the nation's tax-collection agency. ``Because of his dishonest dealings, Mr. Anderson's lavish life style was subsidized by honest, hardworking Americans."
If convicted, Anderson could face up to 80 years in prison. Anderson's attorney, John Moustakas, did not immediately return a call seeking comment.
Anderson started a long-distance telecommunications business in the early 1990s as the industry was being deregulated. His first company merged with another company in 1992, and Anderson allegedly formed offshore corporations in the British Virgin Islands to hide the income and mask his involvement in the companies, the indictment said.
In February 2000, Gold & Appel, Anderson’s investment concern teamed up with the Russia-based Rocket Space Corporation (RSC) Energia, the builders of the Mir space station, to form MirCorp, a company that was to operate Russia’s aging space station as a commercial venture, leasing the station for advertising, scientific research, pharmaceutical processing, satellite repair, even as a future Internet portal (complete with 24-hour views of Earth from orbit).
After additional mergers, Anderson allegedly tried to obscure his ownership further by creating another offshore corporation in Panama, under the alias Mark Wroth, and used a mailbox in the Netherlands.
Assistant Attorney General Eileen O'Connor said countries known as tax havens have been cooperating with U.S. investigations more openly since the Sept. 11, 2001, terror attacks. Terrorist and other shady organizations often use such shelters to launder money.
In 2002, Anderson created Orbital Recovery Corp. whose mission was to give satellite operators an alternative to building and launching new satellites to replace ones that are about to run out of fuel but otherwise remain perfectly healthy.
"The joke is I make money in telecom so I can [throw] it away in space," Anderson said in an interview at the time. "I’m done being an angel investor for crackpot space enthusiasts. I want to be the guy who really commercializes space."
The indictment alleged Anderson used the assets and profits of his telecommunications corporations to earn more than $450 million (euro339 million) between 1995 and 1999 that he failed to report to the Internal Revenue Service.
Anderson had also allegedly failed to file federal income taxes each year from 1987 through 1993 and owed the IRS hundreds of thousands of dollars in taxes, interest and penalties.
The indictment charged that Anderson owes $170 million (euro128 million) in federal taxes and $40 million (euro30 million) in Washington, D.C., income taxes.
U.S. tax laws require citizens to report income earned worldwide and pay any taxes due. They also must disclose foreign financial accounts with combined balances of more than $10,000 (euro7,545).
This commercial brought to you by the IRS. Remember us on April 15th. /sarcasm
Space ping.
"A hand from Washington will be stretched out and placed upon every man's business; the eye of the federal inspector will be in every man's counting house....The law will of necessity have inquisical features, it will provide penalties, it will create complicated machinery. Under it men will be hauled into courts distant from their homes. Heavy fines imposed by distant and unfamiliar tribunals will constantly menace the tax payer. An army of federal inspectors, spies, and detectives will descend upon the state."
-- Virginian House Speaker Richard E. Byrd, 1910, predicting the consequences of an income tax.
Time for a change it seems to me:
Patrick Henry, Virginia Ratifying Convention June 12, 1788:
- "the oppression arising from taxation, is not from the amount but, from the mode -- a thorough acquaintance with the condition of the people, is necessary to a just distribution of taxes. The whole wisdom of the science of Government, with respect to taxation, consists in selecting the mode of collection which will best accommodate to the convenience of the people."
- "The ability of a country to pay taxes must always be proportioned, in a great degree, to the quantity of money in circulation, and to the celerity with which it circulates. Commerce, contributing to both these objects, must of necessity render the payment of taxes easier, and facilitate the requisite supplies to the treasury."
- It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue. ... Impositions of this kind usually fall under the denomination of indirect taxes, and must for a long time constitute the chief part of the revenue raised in this country.
A Taxreform bump for you all.
If you would like to be added to this ping list let me know.
John Linder in the House(HR25) & Saxby Chambliss Senate(S25), offer a comprehensive bill to kill all income and SS/Medicare payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:
H.R.25,S.25
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer for additional information:
thank you.
Assistant Attorney General Eileen O'Connor said countries known as tax havens have been cooperating with U.S. investigations more openly since the Sept. 11, 2001, terror attacks. Terrorist and other shady organizations often use such shelters to launder money.
Government officials in offshore tax havens do cooperate with foreign governments if they can convince the offshore government that it has credible evidence of laundering drug money or terrorist laundering money.
Similar to how some US law enforcement agencies seize money they claim is suspect, often from innocent people, government officials claim a person is suspected of laundering drug or terrorist money.
Otherwise most governments in offshore tax havens steadfastly protect the privacy of IBC international business corporations, foundations and trusts.
Most OSTH governments don't consider tax evasion worthy of digging up information that is intended to be private.
For many OSTH financial privacy rights are critical important to their expanding business economies. If they were to lose the trust of individuals and corporations their economies would shrink as people seeking financial privacy fled to more secure havens.
It appears the IRS is playing the fear-monger card approaching Aril 15.
Mark Everson is a scary guy and also a liar. Mr. Anderson's lifestyle was NOT subsidized by honest, hardworking Americans.
Mr. Anderson's mind is his own, not ours. His body is his, not ours. His creations are his, not ours. His money is his, not ours.
Mr. Everson is a parasite, as is everyone who agrees with him.
Very interesting post. It's always good to know who's being targeted lately. I know there's no comparison here, but this just somehow reminds me of Putin and Yukos. I think this guy's DC citizenship is working against him here. Why on earth would an entrepreneur want to be a DC resident? Anyway, that's my 2 cents. Thanks for the post.
Sounds like the government is interested in maintaining it's monopoly on the space industry.
maybe that's why he was in such a hurry to shoot himself into space?
We are the only country in the world to tax people on money that they make outside of their own country. (oops, I forgot Eritrea, where some communist grad students learned this trick here in the U.S. and took it back to Eritrea after they got their independence from Ethiopia.)
This is going to push more wealthy people out of the U.S., because they are only subject to this tax if they are U.S. citizens.
If this person had changed their citizenship, he would not have had a problem.
How can anyone believe himself free when some outside agency, in this case the government, can make and enforce an APRIORI claim on on whatever portion of the fruits of his labor it chooses?
How can one believe himself free when an agency of the government has the power to literally destroy him financially simply by making an allegation against him?
There is absolutely NO need for the American people to to be subject to such a system! The revenues necessary can be fairly collected without the need for the government to know so much as one's name and the bills to get it done (HR25/S25) are now before congress needing only our support to become the law of the land!
I am sure there is nothing that scares guvmint more than you or I having the ability to orbit over them in non-guvmint spacecraft
With the NRST people would not have to try to jump through all those hoops. Even crooks could be honest. :-)
Bigun bump
Fundamental tax reform bump
My thoughts Exactly....
Predominant view of the gobbermint is that it's their money....and they allow us to keep some of it. That sentiment comes through LOUD and clear in this article. Everson must go. The Code Must GO. THE IRS MUST GO!
"Tax Evasion" is the catchall cause of action used when the gobbermint simply wants to harass. This has to stop.
FAIRTAX NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
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