A Wisconsin neurosurgeon has been convicted of filing a false tax return and failing to disclose offshore bank accounts, authorities announced.
Arvind Ahuja, a prominent neurosurgeon in Milwaukee, was convicted of one count of filing a false 2009 individual income tax return and one count of failing to file a Report of Foreign Bank and Financial Accounts (FBAR), the Justice Department and Internal Revenue Service (IRS) announced.
The jury delivered the guilty verdict yesterday in U.S. District Court in Milwaukee, where trial began on August 15, 2012. Ahuja’s conviction stems from his failure to disclose offshore bank accounts maintained in India and the Bailiwick of Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France.
According to the evidence presented at trial, Ahuja transferred millions of dollars from bank accounts in the United States to undeclared bank accounts located in India at HSBC bank. Ahuja invested the funds in these accounts in certificates of deposit, which earned more than $2.7 million in interest income during the years 2005 through 2009. Ahuja also maintained an HSBC bank account in the Bailiwick of Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France.
The evidence established that for tax year 2009, Ahuja filed a false tax return with the IRS that failed to report the interest income earned on his certificates of deposit at HSBC India, and failed to report he had signature authority over bank accounts located in India and Jersey. Ahuja also failed to file an FBAR for 2009 to report his offshore accounts to the IRS. Ahuja’s accountant testified that Ahuja never disclosed the existence of his offshore accounts during the preparation of his tax returns.
United States citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. Additionally, U.S. citizens and residents must file an FBAR with the United States Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Sentencing is scheduled for January 18, 2013. U.S. Attorney James L. Santelle and Principal Deputy Assistant Attorney General John A. DiCicco praised the investigation and prosecution of Ahuja’s tax crimes. ?This prosecution reflects the continuing commitment of the United States Department of Justice, including my office and the Tax Division, to identify, investigate and prosecute individuals who fail to abide by well-established obligations to report and pay on their tax indebtedness,? said U.S. Attorney Santelle.
?This case is a warning to individuals who still think they can use offshore bank accounts to commit tax crimes,? added Principal Deputy Assistant Attorney General DiCicco. ?Citizens who honestly report their income and pay their taxes can take comfort that the Department of Justice is committed to the prosecution of tax cheats who use these offshore accounts.??
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