Tax Whistleblower Awarded $17.8 million

August 5, 2016 Taxation in USA

WASHINGTON D.C. – A new USD 17.8 million payout could see tax authorities in the USA could see a rise in the amount of information provide by whistleblowers.

Earlier this week the Tax Court of the United States of America ruled in favour of two whistleblowers, paving the way for the individual to receive a payment from the Internal Revenue Service of USD 17.8 million.

The ruling marks the first time that a major whistleblower has received payment as a portion of the civil forfeitures and criminal fines resulting from information that they provided to authorities.

The details of the parties involved in the case have been supressed, however, some experts have speculated that the case in question could revolve around leaked information about the now-defunct Swiss bank Wegelin & Co.

It is believed that the ruling, and subsequent payment will pave the way for not only more whistleblower payments, but also for more whistleblowers to come forward with information about large-scale tax evasion.

The current regulations regarding payouts from whistleblowing are that the informant may be eligible for up to 30 percent of recovered funds, for evasion worth at least USD 2 million or evasion committed b an individual earning at least USD 200 000 per year.

Photo By: Simon Cunningham