Forget Bermuda. Some rich Americans are now evading taxes through the Holy Land.
The Internal Revenue Service and Justice Department recently indicted three Israeli-American tax preparers for helping rich Americans evade taxes by sheltering their money in two Israeli banks, the Wall Street Journal reports. They are the first indictments for U.S. tax evasion through Israeli banks.
The Israeli-American tax preparers allegedly set up offshore accounts for six American clients in one Israeli bank's Luxembourg branch and in another Israeli bank's Switzerland-Luxembourg branch, according to the indictment cited by the Journal.
The U.S. has been cracking down on tax evasion through foreign banks, probing 11 Swiss banks for helping Americans evade taxes by stashing their money in Switzerland. The U.S. also indicted four Credit Suisse bankers last year for helping Americans hide billions from the IRS.
The Treasury Department aims to reach agreements with France, Germany, Italy, Spain and the U.K. by the end of June to crack down on tax evasion, according to Reuters. The agreements would enable those countries to give the U.S. information about tax evasion after collecting it from the banks.