U.S. Attorney Damian Williams | U.S. Department of Justice
The Internal Revenue Service (IRS) has received authorization from U.S. District Judge John P. Cronan to issue summonses targeting entities potentially involved in helping U.S. taxpayers evade taxes through the use of offshore service providers. The order, announced by Edward Y. Kim, Acting United States Attorney for the Southern District of New York; David A. Hubbert, Deputy Assistant Attorney General for the Justice Department’s Tax Division; and Danny Werfel, IRS Commissioner, focuses on those who may have used the Trident Trust Group's services.
The summonses are intended to gather information from a Trident Trust Group affiliate and companies facilitating transactions with them. These records aim to identify U.S. taxpayers who might have utilized these services to manage foreign assets and evade tax obligations.
Acting U.S. Attorney Edward Y. Kim stated: “Today’s action is part of this Office’s steadfast commitment to hold accountable those who use offshore service providers to avoid paying their U.S. taxes.”
David A. Hubbert added: “The Department of Justice and the IRS are committed to using the tools available to us, including John Doe summonses like the ones authorized today, to ensure that taxpayers fully meet their responsibilities, including reporting their worldwide income and use of foreign accounts.”
IRS Commissioner Danny Werfel emphasized: “U.S. taxpayers and their facilitators who hide offshore income generating activities and assets from the U.S. government are on notice that the IRS continues to prioritize combatting offshore abusive activities."
Federal law mandates that all income earned globally by U.S citizens, resident aliens, and trusts must be reported if it exceeds certain thresholds. Non-compliance can lead to severe legal consequences.
Trident Trust Group operates in nearly 30 jurisdictions known for strict privacy laws conducive to concealing financial interests. They offer services such as creating corporate structures with anonymous directors which can be used for tax evasion purposes.
At least nine clients have voluntarily disclosed non-compliance through an IRS program allowing fixed penalties for revealing hidden foreign assets.
The court also approved IRS summonses directed at Nevis Services Limited in Manhattan along with twelve other financial entities and courier services such as Federal Reserve Bank of New York and Citibank, N.A., among others, although no wrongdoing by these institutions is alleged.
Simultaneously, similar actions are being pursued in other district courts against additional Trident Trust Group entities within the United States.
This investigation is managed by the Office’s Tax and Bankruptcy Unit under Assistant U.S. Attorney Anthony J. Sun's supervision.
