Ty Warner, creator of the all famous Beanie Babies brand , has been charged with tax evasion for failing to report income earned that was stored in a secret offshore account.
According to Fox News , prosecutors in Chicago announced charges Wednesday against H. Ty Warner .
The report continues on to say that TY Warner has decided to plead guilty and pay a penalty of more than $53 million.
“This is an unfortunate situation that Mr. Warner has been trying to resolve for several years now – including through an attempt to enroll in the IRS’s Offshore Voluntary Disclosure Program in 2009,” said attorney Gregory Scandaglia.
According to ABC News , tax evasion carries a maximum penalty of five years in prison and a $250,000 fine. The report continues on to say,
“A defendant convicted of tax offenses faces mandatory costs of prosecution and remains civilly liable to the government for any and all back taxes, as well as a potential civil fraud penalty of up to 75 percent of the underpayment plus interest.”
Fox News reported that according to charging documents, Warner maintained a secret offshore account with the Switzerland-based financial services company, UBS, starting in 1996.
“Regardless of wealth, everyone must pay taxes on all of their income, not just the amount they choose to report. The charge alleges that Warner went to great lengths to hide from his accountants and the IRS more than $3.1 million in foreign income generated in a secret Swiss account. Such conduct invites federal prosecution,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
NPR reported that the US is in the process of cracking down on offshore tax havens .
“In January, Switzerland’s oldest bank, Weglin & Co. pleaded guilty in New York to helping Americans hide $1.2 billion from the IRS and in 2009, UBS paid $780 million in a similar settlement that forced it to identify its US account holders.”
As stated before, Ty Warner has decided to plead guilty to the charges of tax evasion , and will pay a penalty of more than $53 million.
[photo credit: Extra Medium via photopin cc ]
