Investing assets is a complicated business. As such, it is not uncommon to hire a financial planner or to seek advice from investment professionals to aid in creation of an investment strategy. In many cases, this can lead to a strategy that minimizes risks while maximizing benefits. In some, it can lead to financial catastrophe.
That is the situation in a recent case. The case involves allegations recommended tax planning strategies resulted in a tax crime.
What was the investment strategy that led to tax fraud? Courts have accused leaders in media of false representations of fact to promote plans to create tax efficient films. The accused is responsible for various films including Life of Pi and Avatar.
A primary allegation is the use of artificial losses from films in an effort to claim tax relief.
Although a European tax case, lessons are present for taxpayers in the United States. This type of fraud is not uncommon. A similar case was present in Switzerland in 2011 and again in the United Kingdom in 2007. In both instances, the investors filed suit against the investment firms for failed financial strategies and negligence. In this case, over 500 investors have joined in the lawsuit.
What if accused of tax fraud due to an unwise investment strategy? Whether an investment strategy focused on foreign assets or domestic, government allegations of tax fraud are serious. It is wise to seek legal counsel to tailor a defensive strategy to your specific case. Contact the attorneys at Goldburd McCone LLP to help mitigate the risk of penalties, including monetary fines and potential imprisonment.