Filed under: Motorsports, Government/Legal
Helio Castroneves indicted on tax evasion charges
Helio Castroneves has known only success in pretty much everything he's ever attempted, whether it be open-wheel racing or his fancy footwork on Dancing with the Stars. But the Brazilian-born driver is going to need more than quick feet and a knack for racing to get the Internal Revenue Service off his back. The two-time Indy 500 champ, along with his sister/business manager and lawyer, is in a world of legal hurt after being indicted by the IRS on six counts of tax evasion, which could send the talented driver to prison for up to 35 years. Castroneves was allegedly using an offshore bank account to hide millions of dollars from the U.S. government, which is a really bad idea, especially if you get caught. He received a $1 million driver agreement and $5 million licensing agreement from Penske racing for 2000-2002, and he allegedly stuffed the $5 million into an offshore account via a deferred royalty plan for which he wasn't eligible. For its part, the IRS seems intent on making an example out of Castroneves, saying "This case sends a clear message that the IRS is committed to vigorously enforcing the lax laws and stopping offshore tax evasion."
[Source: Market Watch, Photo by Robert Laberge/Getty]
Reader Comments (Page 1 of 2)
dknight211 11:38AM (10/03/2008)
Hello Helio, here's your slice of humble pie.
Reply
Eduardo 1:25PM (10/03/2008)
It's a shame to say, but this is a common behaviour of high and upper high class brazilians
it's quite common in this niche of the society here, people counting advantage and being proud of how they are deceiving our Federal Tax Agency (called Receita Federal) and laws are weak and unefficient, so they'll never face jail
(as an example, the owner of daslu, the mall of the brazilian riches, one of the largest sellers of top marques and Maisons, was caught in a scandal tax evasion of the equivalent to USD 50 milion, went to jail, stood there for only 3 days, and now her lawsuit is stopped in the subways of brazilian judiciary)
and here in Brazil the high class and upper high class, alongside the riches, account for 80 % of the tax evasions, and ironically, the lower middle and middle classes are the ones that pay the taxes correctly
maybe he was raised with this mentality, and tried to pass it on there in US, where the tax laws are far more strict, and it didn't passed
shame for him, as I used to support him in the Indy
Eduardo 1:26PM (10/03/2008)
It's a shame to say, but this is a common behaviour of high and upper
high class brazilians
it's quite common in this niche of the society here, people counting
advantage and being proud of how they are deceiving our Federal Tax
Agency (called Receita Federal) and laws are weak and unefficient, so
they'll never face jail
(as an example, the owner of daslu, the mall of the brazilian riches,
one of the largest sellers of top marques and Maisons, was caught in a
scandal tax evasion of the equivalent to USD 50 milion, went to jail,
stood there for only 3 days, and now her lawsuit is stopped in the
subways of brazilian judiciary)
and here in Brazil the high class and upper high class, alongside
the riches, account for 80 % of the tax evasions, and ironically, the
lower middle and middle classes are the ones that pay the taxes
correctly
maybe he was raised with this mentality, and tried to pass it on
there in US, where the tax laws are far more strict, and it didn't
passed
shame for him, as I used to support him in the Indy
Luis 2:04PM (10/03/2008)
Well, no WONDER he was always in a good mood, I'd be in a good mood if I didn't pay taxes too!
Alex 11:40AM (10/03/2008)
dumb ass.
Reply
DC 11:41AM (10/03/2008)
Well that is a shame. He was fun to watch on TV, but it looks like no more Indy 500s/championships for him anymore.
He has danced his last dance.
Reply
Fyrewerx 5:10PM (10/04/2008)
When he showed up in court in Miami, his legs were shackled -- that makes it much harder to dance.
dukeisduke 11:42AM (10/03/2008)
Good grief, Helio, are you out of your frickin' mind? Taking lessons from Wesley Snipes? I am speechless.
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Josiah 11:42AM (10/03/2008)
Dumbass. There are so many legal (but morally questionable) ways to reduce your tax liability. He just got *really* greedy, on top of the normal greed well all gave :)
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Ericok 11:43AM (10/03/2008)
Now if only the IRS would apply the same standard to US corporations that park their income offshore.
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TJ 12:01PM (10/03/2008)
They would do that, but half of our Senators and Representatives would end up in jail too.
Apparently, the key to tax evasion is discretion.
Josiah 11:44AM (10/03/2008)
The upside for Helio is that he can drag this thing out for years (probably while racing to "pay back uncle same") with appeals and legal feet dragging/posturing.
Just like Snipes!
Reply
Josiah 11:44AM (10/03/2008)
same=Sam
meh
Avinash machado 11:46AM (10/03/2008)
Maybe he did not like his money going to bailout the automakers. So he refused to pay the taxes thinking he needs it more than the big 3.
Reply
Tim 2:35PM (10/03/2008)
Avinash: What part of LOAN to the automakers do you not understand. THIS IS NOT A BAILOUT!!! They have to pay it back, hence, a LOAN. Not the Wall Street bailout, THAT my friend is a bailout.
Neil Schelly 12:11PM (10/03/2008)
Does putting a man in prison and supporting all his needs for 35 years really cost less than he missed in paying taxes? That's just ludicrous. Here's a good idea for punishment: pay back the taxes.
-N
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Neil 12:12PM (10/03/2008)
I don't get why rich people do stupid things like this.
You have tons of money, why even bother risking it.
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tankd0g 12:18PM (10/03/2008)
Rich people generally hire people who do this stuff to/for them and assure them it's all perfectly legal.
bakka 4:30PM (10/04/2008)
GREED!
tankd0g 12:18PM (10/03/2008)
Maybe if he's lucky the American financial system will collapse in time to make his infraction worth less than a a loaf of bread.
Reply