U.S. Internal Revenue Service charges Russian oligarch: he faces prison

US authorities accuse Russian banker Oleg Tinkov, who was detained in London, of submitting false tax information. Now he faces up to six years in prison, this was reported in the United States Department of Justice, reports RIA News.

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The indictment against Tinkov consists of two counts, for each of which he faces up to three years in prison. The banker will also be subject to “stay under supervision” and may be required to pay damages and fines.

“He also faces supervised release, damages and monetary fines,” the statement said.

The indictment was filed with the California Northern District Court in September 2019, but only now has it been revealed.

On the subject: Russian billionaire paid $ 25,5 million in collateral to avoid IRS arrest

The indictment states that Tinkov, who received US citizenship in 1996, founded TCS (Tinkoff Credit Systems), headquartered in Russia. Until October 2013, he indirectly owned most of its shares through three entities in the British Virgin Islands. As of October 27, 2013, according to the US Department of Justice, the market value of all shares at the disposal of the Russian was more than a billion dollars. The next day he left American citizenship.

Under U.S. law, all property of a renouncer with a net worth of two million dollars or more is treated as having been sold at fair market value on the day before the renunciation (called a “constructive sale”), and all profits are subject to tax for that year, it says. document. Thus, according to the tax authorities, Tinkov had to pay taxes on the entire amount at which his shares were valued.

The first paragraph of the indictment says that Tinkov filed an incorrect tax return in 2013, where income for the year was indicated in the amount of $ 205 thousand, realizing that it was actually higher.

“His 2013 tax return did not report any gain or income from the constructive sale of his property in connection with renunciation,” the opinion states.

The second point of the charge relates to the financial information that Tinkov indicated in his application for renunciation of citizenship, where the applicant reports taxes five years before expatriation. In it, he reported that at the time of renunciation of citizenship, his fortune was estimated at 300 thousand dollars.

“Tinkov knew that his net worth on the date of expatriation was more than $300 and that he had to submit a list of property and provide information related to this property in the application for renunciation of citizenship,” the document says.

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Last week it became known that the US Internal Revenue Service initiated court hearings in London against Tinkoff. On Monday, March 2, the entrepreneur made a deposit after issuing a warrant for his detention. The company noted that he participates in the hearings as a private individual.

On Thursday, March 5, it became known that a British court ordered Tinkov to hand over Russian and Cypriot passports.

As reported by ForumDaily:

• The representative of Tinkoff Bank said that the company independently provided information on participation of Oleg Tinkov in court hearingsinitiated by the IRS, “to transparently comply with all legal standards relevant to a publicly listed company in London and Moscow.”
• At the same time, a company representative emphasized that Oleg Tinkov has not been a U.S. citizen since 2013.
• TCS Group Holding PLC includes Tinkoff Bank, Tinkoff Mobile virtual mobile operator, Tinkoff Insurance, and Tinkoff Capital management company.
• Oleg Tinkov founded TCS Group Holding PLC in 2006. Forbes estimated his fortune in 2019 at $ 2,2 billion. According to the publication, Tinkov was ranked 47th in the ranking of “200 richest businessmen of Russia 2019”. He dropped to this position from the 43rd in the top 200 of the richest Russian entrepreneurs in 2018.

Read also on ForumDaily:

From fine to jail time: what happens if you don't pay taxes

US Internal Revenue Service Claims Famous Russian Billionaire

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