Friday, November 26, 2004
A follow-up to Tuesday's post about the arrest of tax fraud promoter Jerome Schneider: the L.A. Times reports that among the names of clients on the list seaized by the IRS was Sandra Bullock, who paid Schneider $100,000 for tax advice about purchasing an offshore bank in the Cayman Islands:
Bullock's father, John, saw an advertisement promoting Schneider's tax shelter advice in an in-flight airline magazine in 1996. Intrigued, the Bullocks paid to have Schneider fly from Vancouver to New Orleans to meet [with Bullock's attorneys].... The gist of Schneider's claim was this: People could buy an offshore "shell" bank — one without any real depositors or business activity — and have it "owned" on paper by a foreign person or entity. The U.S. investor could then use the bank to accumulate investment income, without having to pay U.S. taxes on the money.
(Thanks to the Tax Guru for the tip.)