New Weapon of Choice? Foreign Tax Authority Armed with Letters Rogatory Goes After U.S. Tax Fraud Scheme

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Thursday, July 30, 2020
Author: 
Mitchell Beebe and Bruce Zagaris
Volume: 
36
Issue: 
8
Abstract: 

            In the past, it has been notoriously difficult for foreign tax authorities to go directly after U.S. persons who are or were involved in fraudulent tax schemes. These lawsuits often fail on jurisdictional grounds, as the people involved and the evidence needed to substantiate a claim are sheltered behind offshore intermediaries. In a major ongoing lawsuit, this veil may now be lifted as a federal judge in New York has agreed to issue letters rogatory seeking evidence and testimony from offshore entities allegedly involved in the scheme.