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Tiësto and Afrojack’s Ex-Attorney Sentenced To Tax Fraud
Frank Butselaar, a prominent tax attorney known for representing world-famous DJs Tiësto and Afrojack, has been sentenced to 30 months in prison for tax fraud in New York. A serious blow to Butselaar, a 65-year-old consultant dubbed the “taxman to the stars” by the Dutch press.
Tax Fraud
This outcome of the fraud could provide advantageous for Butselaar’s clients Afrojack and Tiësto. The court has ordered Butselaar to pay an astonishing $19.25 million in restitution. This is the amount that federal prosecutors allege he helped the two DJs save from 2012 to 2018. Done through a complex web of offshore tax shelters in Cypress and Guernsey. Butselaar would file tax paperwork indicating that his clients’ friends and family members were the beneficiaries of those shell corporations and trusts. In a significant twist, the authorities are demanding that Butselaar, bear the financial responsibility to the IRS. Both Tiësto and Afrojack, also Dutch citizens, have not faced any charges related to this tax shelter scheme. Prosecutors have emphasized that the DJs were unaware of Butselaar’s fraudulent tactics.
During this period, both Tiësto and Afrojack were classified as U.S. tax residents due to their temporary stay in the country. Legally required to pay taxes on their worldwide income at the time. In 2017 Forbes estimated Tiesto earned $39 million in the last fule year that prosecutors say Butselaar ran his scheme. According to Butselaar’s lawyer, they have settled with the IRS for a small portion of the owed taxes. Butselaar, a former partner at Greenberg Traurig’s Amsterdam office, has pleaded guilty to one count of aiding in the filing of a false tax return, despite initially challenging the charges. He is left about six months of his sentence after spending 21 months in detention. Butselaar’s attorney strongly argues requiring him to pay the $19million sum is unjust, as he was not the taxpayer involved in the case.
As of now, representatives of Afrojack and Tiësto have not responded to requests for comments regarding the situation. Stay tuned to EDMTunes for the latest news in the electronic music world.