Four charged with tax evasion.
James W. Ferguson III of Amarillo, Tex, Peter G. Fagan of De Leon, Tex, and J. David Jackson of St Croix were also charged. The indictments cap a four-year investigation that began with a federal raid of Kapok and touched off new federal scrutiny of the USVI tax incentives. Approved by the US Congress, the program permits qualified taxpayers to cut their federal bill by 90%. A 2004 federal law placed new restrictions on the tax program and chased off a burgeoning hedge fund industry attracted by the incentives, the USVI government says;
To qualify for the tax incentives, firms must invest at least US$100,000 in the territory, buy products such as office supplies and computers in the USVI, contribute to area charities and hire at least 10 people, 80% of whom must be natives of the islands. Company owners must live in the territory for at least half of the year. The indictment claims Auffenberg, a St Louis-area car dealer, and other partners never actually became bona fide residents and used the St Croix-based Kapok to launder funds they earned in the US.
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|Title Annotation:||U.S. VIRGIN ISLANDS|
|Date:||May 1, 2007|
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