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IRS flags checkered taxes of Colombian racecar driver

Juan Pablo Montoya (Photo: Parc Ferme)

Colombian race-car driver Juan Carlos Montoya may owe the U.S. government $2.7 million in extra taxes and penalties, according to an article published Sunday in Forbes magazine. 

The United States Internal Revenue Service (IRS) says that Montoya and his wife reported less than a quarter of his $9.5 million taxable income in a recent joint tax return, according to the report.

The issue revolves around transfers made between a trust set up by Montoya in the Caribbean tax haven of the Bahamas and another in the United States domestic tax haven of Delaware. The 38-year-old reportedly used his transition to U.S.-residency status to bring his offshore holdings into the United States without paying the full taxes on them.

The IRS has accused Montaya of attempting to defraud the U.S. government, while lawyers familiar with the relevant tax code claimed in the Forbes article that Montoya’s actions merely took advantage of existing loopholes in the law.

Montoya, one of Colombia’s most recognizable international athletes, became a U.S. resident in 2007, after moving to the country in 2006.

After six successful campaigns in Europe’s Formula 1 circuit, the Bogota native transfered to NASCAR, where he has been racing ever since.

In 2009, Montoya became the first Colombian sportsperson to meet with the President of the United States of America.

MORE: Obama honors Montoya and other NASCAR drivers

Montoya has not been arrested, and is currently residing with his family in Miami, where there are no local nor state income taxes.

Source

IRS Says Race Car Driver Juan Pablo Montoya Used Sham To Wrongly Deduct Millions (Forbes)

The post IRS flags checkered taxes of Colombian racecar driver appeared first on Colombia News | Colombia Reports.

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"Rico" is the crazy mind behind the Q media websites, a series of onlinemagazines that includes TodayColombia.com. Rico brings his special kind of savvy to online marketing. His websites are engaging, provocative, informative and sometimes off the wall, where you either like or you leave it. The same goes for him, like him or leave him.There is no middle ground. No compromises, only a passion to present reality as he sees it!