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NYC Eyeing Offshore Tax Cheats


bloomberg2.jpgWealthy tax cheats, beware: New York has your number.

Mayor Bloomberg is considering backing a new effort by the Manhattan District Attorney’s Office to nail rich New Yorkers who stash their cash in offshore tax shelters and businesses that stiff the IRS, sources said.

They’re eyeing an estimated $1 billion in uncollected revenue — a boost for a city facing massive deficits.

“There’s a hell of a lot of money in the underground economy and offshore,” said Manhattan DA Robert Morgenthau, who busted the Cipriani restaurant empire for dodging $10 million in taxes in 2007.

His office has pocketed $180 million in tax seizures since July 1, mostly from scheming Tyco executives and Lloyds Bank.

Sources said the mayor has long resisted the effort, which would require the city to help fund hiring more investigators and getting cooperation from tax-shielding nations such as the Cayman Islands, which has nearly $2 trillion in foreign deposits.

But the financial crisis and the large cash seizures have changed Bloomberg’s mind, sources said.

(Source: NY Post)



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