In March, 2016 the US Dept. of Justice announced guilty pleas for Two Cayman Island Financial Institutions Cayman National Securities, Ltd. ("CNS") and Cayman National Trust Co., Ltd. ("CNT"). CNS and CNT are affiliates of Cayman National Corp., which provides investment brokerage and trust management services to clients including US Taxpayers. CNS & CNT pleaded guilty to a criminal Information charging them with conspiring with many of their US taxpayer-clients to hide more than $130m in offshore accounts from the IRS and to evade US taxes on the income earned in the accounts. The plea agreements require the companies to produce account files of non-compliant US taxpayers and pay a total of $6m in penalties which consists of the forfeiture of gross proceeds of their illegal conduct, restitution of the outstanding unpaid taxes from US taxpayers who held undeclared accounts at CNS & CNT and a fine. The guilty plea is the first conviction of a non-Swiss financial institution for tax evasion conspiracy.
From 2001-2011, CNS and CNT assisted US taxpayers in hiding accounts from the IRS and evading their US tax obligations.
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Our author, Gary S. Wolfe, has more than 34 years of experience, specializing in IRS Tax Audits and International Tax Planning/Tax Compliance, and International Asset Protection.