Tax Whistleblower Recieves Millions as Reward
WASHINGTON D.C. – US tax authorities have issued their largest ever reward to a whistleblower for information about tax evasion committed by US taxpayers.
At a press conference on September 11th the executive director of the US advocacy group the National Whistleblower Center Stephen Kohn announced that Bradley Birkenfeld, a former banker with UBS, has been awarded USD 104 million for information he provided to US tax authorities regarding American taxpayers who evaded their tax obligations.
Stephen Kohn, who is also Bradley Birkenfeld’s lawyer, said that by making such a large payment the IRS has effectively “…sent 104 million messages to whistleblowers around the world – that there is now a safe and secure way to report tax fraud and that the IRS is now paying awards.”
He added that the new payout indicates to banks around the world that the IRS does not condone tax evasion and will take strong measures to ensure that taxpayers meet their tax obligations.
In 2007 Bradley Birkenfeld began to provide the US authorities with information regarding American clients of UBS who were evading their tax obligations with the help of the bank.
Bradley Birkenfeld was sentenced to 40 months in prison after pleading guilty to involvement in some of the schemes.
According to the IRS, the information provided by Bradley Birkenfeld has led to the recovery of nearly USD 5 billion in back taxes and penalties from US taxpayers.
In a statement a statement released on the same day Bradley Birkenhead commented on the reward and his remaining sentence, saying “…this is a monumental day not only for me, but for every whistleblower worldwide.”
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