Prakash Hinduja faces tax troubles worth $137mn in Switzerland, assets to be frozen

[Martin Everson]

Even Switzerland is clamping down on people with sham residency arrangements for tax purposes...lol.

Prakash Hinduja faces tax troubles worth $137 mn in Switzerland, assets to be freezed

Under its law, Swiss citizen Hinduja is entitled to a presumption of innocence.

economictimes.indiatimes.com

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GENEVA: Switzerland's highest court has ruled that an Indian Swiss tycoon could owe the Geneva region more than 125 million francs (about $137 million) in back taxes amid allegations that he tried to pass himself off as a resident of Monaco and falsified the value of his fortune.

In revelations brought to light Wednesday in Swiss media, the Federal Tribunal in Lausanne on Aug. 17 upheld a decision to freeze assets belonging to Prakash Hinduja in connection with a much larger tax debt to local authorities than he had originally claimed between 2008 and 2017.

French-language daily 24 Heures said the alleged wrongdoing came to light after an investigation by Geneva prosecutors opened three years ago over alleged human trafficking and usury involving workers at the Geneva villa where Hinduja and his family have lived.

A prosecutor then told tax authorities that Hinduja still resided in Geneva, despite claims of residency in Monaco since 2007. He also allegedly benefitted from undisclosed payouts from a trust on the Isle of Man, which misrepresented the size of his fortune and thus - like the claim of Monaco residency - had lowered his tax liability in Switzerland.

In May 2019, Swiss tax authorities led a raid of the villa in the posh Cologny area of Geneva and seized safes, computer equipment and documents. An asset freeze was implemented. Ultimately, the federal court revised downward the amount of funds that were allowed to be held as collateral, from more than 150 million francs originally.

The case remains pending as a criminal investigation brought by prosecutors plays out, 24 Heures reported.

Under Swiss law, Hinduja, who obtained Swiss citizenship in 2000, is entitled to a presumption of innocence. Xavier Oberson, a lawyer for Hinduja, didn't immediately respond to an email and a phone call seeking comment.

Along with three brothers, Hinduja is a leader of the conglomerate that collectively employs over 150,000 people in sectors including information technology, media, power, real estate and health care.

Forbes magazine currently puts the net worth of the "Hinduja Brothers" at $15.4 billion.

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[daxbr]

"He also allegedly benefitted from undisclosed payouts from a trust on the Isle of Man, which misrepresented the size of his fortune and thus - like the claim of Monaco residency - had lowered his tax liability in Switzerland."

Any indications what kind of trust he has?

 

[Vor]

well if he is worth $15.4B or even if between him and his brothers he is worth a few billion then I suppose losing the $137M isn't the end of the world.. however in most cases those using sham residency setups probably aren't billionaires and will have a much harsher fate.

 

[Martin Everson]

I am sure it will still hurt him as billionaires don't really have any cash laying around at all. They don't because most of their wealth is in stocks or invested and secondly they don't like paying any income tax so don't often turn stocks into cash. No doubt he will have to take a loan against his wealth to pay such a fine if found guilty. I am pretty sure the clamp down on people with sham residencies will dominate 2022. We already seen what happened to Shakira etc the taxman is onto this all like I said on here over a year ago

Any indications what kind of trust he has?

Not sure but don't think it makes much difference as income is income. We have to also remember the Hinduja brothers are well established in Switzerland and have their own Swiss bank named after them etc. For Switzerland to come after them they must have pissed someone off big time .

 

[troubled soul]

I think It is more likely Hinduja family feud puts their dirty secret and dirty setup out in public.
Brothers are fighting for fortune. They are throwing dirt on each other.
Basically A "Family Drama".

Government has nothing to do in this. Brothers are using their connection in government to Putting Each other down.

 

[Martin Everson]

Good insight. Would be a terrible thing to do to a family member but sounds plausible.

 

[jafo]

Sheeesshhhhh.... the guy did it backward!

The Devil is in the details!

You first establish a solid residency in Monaco! 100% solid!
Then you approach CH with a decent offer and see if they want a "piece of the cake" too.

Analogous to dating a Supermodel and after you "separate" from her you can always, if you wish, go down in "weight class".
Dating the bland "neighborhood" girl is NOT impressive to a Supermodel. You can't jump weight classes like that

Would be a terrible thing to do to a family member but sounds plausible.

Most people underestimate how much their OWN family hates them

PS. In college, a family court judge suggested I read family court proceedings, discovery, depositions, transcripts, etc. I did this from age 19 to age 26. I abruptly stopped. It was crushing my soul!