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Major Tax Fraud Scandal: Tiesto’s Ex-Lawyer Faces Prison
A massive celebrity tax fraud case has unraveled as Frank Butselaar, a former tax attorney for world-famous DJs Tiesto and Afrojack, has been sentenced to 30 months in prison for orchestrating a tax evasion scheme that concealed over $100 million in income.
Federal prosecutors allege that Butselaar, dubbed “Taxman to the Stars” by Dutch media, masterminded an intricate web of offshore shelters to evade U.S. tax obligations for his high-profile clients. The repercussions? A potential restitution order of $19 million, with the IRS aiming to hold Butselaar financially accountable rather than the DJs themselves.
Breaking Down the Tax Evasion Scheme
Between 2012 and 2018, Butselaar allegedly manipulated offshore tax shelters in Cyprus and Guernsey to hide earnings for his elite clientele. The strategy involved setting up shell corporations and trusts under the names of friends and relatives of his clients—while in reality, the real beneficiaries remained Tiesto, Afrojack, and select Dutch fashion models.
According to prosecutors, Tiesto and Afrojack, both Dutch citizens but deemed U.S. tax residents at the time, should have been paying federal taxes on their global income. Yet, under Butselaar’s advisory, they managed to bypass tax obligations amounting to a staggering $19 million.
Celebrity DJs Caught in the Crossfire
While Tiesto (real name Tijs Verwest) and Afrojack (Nick van de Wall) have not been charged with any crimes, their tax liabilities have reportedly been settled at a significantly reduced amount. Legal representatives assert that the DJs were unaware of the fraudulent nature of their tax planning.
Key Courtroom Revelations:
- Prosecutors insisted that Butselaar filed fraudulent tax returns on behalf of Afrojack (2013) and Tiesto (2014-2017).
- Six financial professionals had warned Butselaar about the illegality of his tax strategies.
- The scheme was abruptly halted when U.S. investigators uncovered inconsistencies in offshore income reports.
The High Stakes of Celebrity Tax Fraud
Forbes reported that Tiesto earned $39 million in 2017 alone, underscoring the vast financial stakes in this case. While Butselaar fought the indictment initially, he ultimately pleaded guilty to aiding in filing a false tax return, avoiding what could have been decades in prison.
As a result of the plea deal, Butselaar, who has already spent 21 months in pretrial detention, is expected to serve only six more months behind bars before being released. Meanwhile, Tiesto and Afrojack continue their successful careers, with Tiesto scheduled to perform in India and Afrojack preparing for a set in Italy.
What This Means for Taxpayers Worldwide
This case is a stark reminder of the IRS’s growing scrutiny of offshore tax evasion. High-net-worth individuals, celebrities, and their advisors must navigate tax planning cautiously to avoid severe legal consequences.
Takeaways:
- The IRS is aggressively pursuing fraudulent tax shelters.
- Even unintentional tax evasion can lead to financial settlements and audits.
- Professional tax advisors must ensure compliance to protect their clients from legal risks.
How to Avoid Tax Pitfalls
If you’re an entertainer, entrepreneur, or investor with international income, consult with a licensed tax professional to ensure compliance with U.S. tax laws. The IRS frequently monitors offshore accounts, and non-compliance can result in significant penalties or prosecution.
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