Billionaire Tycoon Named In US Senate Tax Evasion Investigation

[Purveyor]

Frank Lowy, the billionaire shopping centre tycoon, will be revealed today as a client of the notorious Liechtenstein bank, LGT in a US Senate tax evasion investigation that accuses Australia's second richest man of hiding millions of dollars from authorities.

Lowy, the biggest individual shareholder in the quoted property firm Westfield is one of eight wealthy individuals named in the powerful Senate probe for tax evasion which is estimated to cost the US a total of $100bn each year.

The billionaire strongly refutes the allegations of tax evasion but, in a 110-page report to be released at a Senate investigations committee hearing, he and his three sons are accused of using LGT to hide $68m (£34m) from tax authorities between 1996 and 2001, using a complicated structure of trusts and accounts spanning Delaware in the US, the British Virgin Isles and Liechtenstein.

A team of Senate investigators has accessed dozens of sensitive bank documents and memos which reveal that Lowy's account was one of the largest at LGT. Lowy was considered so valuable a client that unusually he was not required to visit Switzerland to sign off instructions. Instead LGT officials flew out to meet him in London.

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But Lowy totally rejects the assertion made by a team of Senate investigators that he knowingly evaded taxes. In a strongly worded statement, he said: 'The report from the US sub-committee relies on certain documents originally stolen from a Liechtenstein Bank. It draws inferences from the documents and states them as facts - without verifying their contents or inquiring into the real facts. Under the Australian tax system the use of Liechtenstein structures to hold assets is not illegal or improper.

"Before publishing the report the US sub-committee failed to give Frank Lowy or his family any meaningful opportunity to be heard or otherwise have the true position stated. This amounts to a denial of natural justice."

Lowy added that the beneficiary of his Liechtenstein-held funds were charities in Israel.

GUARDIAN UK: http://www.guardian.co.uk/business/2008/jul/17/taxevasionprobe.franklowy

[loveable liberal]

1. Lowy family of scumbags.

how odd for the super rich.

[Ian David]

2. How much did he donate to McCain? n/t

[Trillo]

3. Never heard of 'em.

Why do non-US citizens owe U.S. taxes?

[lurky]

4. Earn income in America, pay income tax in America.

If that wasn't true, all the billionaires would move their citizenship to Liberia or Tonga to avoid paying taxes. (Shh.. let's not give them any ideas) :P

[bushmeister0]

5. "Lowy added that the beneficiary of his Liechtenstein-held funds were charities in Israel. "

So anyone who dares go after to him is a . . . you-know-what. The last refuge of a scoundral . . .

ABC's Brian Ross says Lowy will control the retail space at the new WTC, btw.

http://cosmos.bcst.yahoo.com/up/player/popup/?rn=3906861&cl=8857693&ch=4226713&src=news