A dentist in Kenai, Alaska, has been indicted for using an elaborate offshore trust scheme to evade more than half a million dollars in income taxes.According to the indictment, Glenn E. Lockwood, a practicing dentist who owned the Kenai Dental Clinic, attempted to evade more than $575,000 in federal income taxes for calendar years 2000 to 2003. The indictment alleges that Lockwood created a corporation called Glenn E. Lockwood DDS, PC, in order to facilitate his tax evasion. It further alleges that Lockwood entered into an improper offshore executive leasing and deferred compensation scheme in order to fraudulently reduce his taxable income and channel his income into offshore investments.
Lockwood contracted his professional services to Executive Recruitment and Leasing Services (ERLS), an Irish entity, which leased his services to Domestic Executive Leasing Services (DELS), a Nevada company, which then leased his services back to Lockwood’s corporation, the indictment alleges.
The indictment also alleges Lockwood created a sham trust to hold his personal assets and concealed his true income by depositing income from his business into the trust and deducting those payments as insurance expenses on his corporate income tax returns.
If convicted, Lockwood faces up five years in prison and a fine of up to $250,000, or both for each offense.
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Tags: tax evasion