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Wednesday, August 27, 2008

The 10 Most Famous Celebrity Tax Evaders of All Time

Being a celebrity can get you a lot of free designer clothes and a group of paparazzi following you, but it cannot get you out of paying taxes. Whether they were trying to hide small fortunes or simply forgot to pay, dozens of celebrities have found themselves in a tax evasion scandal. To help us all remember to pay Uncle Sam, please enjoy the following list of the 10 most famous celebrity tax evaders of all time.  

1. Judy Garland

The beloved star of Wizard of Oz found her self in a heap of trouble when the sate of New York stuck her with a $4 million bill for tax debt in 1967. Garland was forced to sell her home and travel from hotel to hotel until she could get back on her feet years later.   

2. Martin Luther King Jr.

Alabama’s Governor, John Patterson, “conveniently” charged the civil rights leader with tax evasion during the peak of his civil rights movement. King was charged under the notion that he pocketed cash when he was moving one of his churches. Victory was his though, when his case went to trial and an all white jury and judge acquitted him of all charges. King was lifted by the news and was quoted as saying, “I am frank to confess that on this occasion I learned that truth and conviction in the hands of a skillful advocate could make what started out as a bigoted, prejudiced jury, choose the path of justice.” 

3. Damon Dash

The talented and popular music mogul was faced with $2 million in tax debt on a $50 million dollar fortune that he supposedly did not pay taxes on. At the time rumors circulated that he went to former business partner Jay-Z for a loan, but many suggested he sell his famous collection of 1,000 + pairs of pricey sneakers for the cash.   

4. Annie Liebovitz

Although extremely talented, the world-renowned photographer of the stars and simply “forgot” to pay her state taxes. Fortunately, the case was quickly settled after Liebovitz paid the state of New York $135,916 in owed back taxes. 

5. Joe Francis

Best know for his erotic video series “Girls Gone Wild”, Francis had a run-in with the law when he was charged on two counts of tax evasion against both his company and himself. Not only did Francis evade paying his taxes, but also he hid money in foreign accounts. Unfortunately, his soft porn empire cost him more than a good public image; it cost him an estimated $20 million in fines and unpaid taxes.  

6. Richard Hatch

The first winner of the much-loved TV series “Survivor”, Richard Hatch never paid any taxes on his $1 million prize. Hatch had claimed that CBS agreed to pay his taxes, however he was unable to produce any evidence to support that claim. Eventually the former game contestant was convicted and is currently serving a 4-year prison sentence. 

7. O.J Simpson

The infamous O.J Simpson currently owes the State of California a massive $1.5 million dollars in tax debt. His lawyer tried to claim that Simpson has been a legal resident of Florida for 12 years, however Simpson’s tax debt dates back to 1996.  

8. Luciano Pavarotti

The beloved opera singer was investigated for tax fraud in 1999 and ended up owing the Italian government $11 million. He was investigated again in 2001, but was acquitted of the new charges in court.  

9. Al Capone

The world’s most famous mob boss Al Capone, was not afraid to say he thought taxes were a joke. Unfortunately for Capone the federal government brought charges of tax fraud against him in 1931 and not only levied an $80,000 fine against him, but also sent him to prison for 11 years. 

10. Martha Stewart

Martha Stewart, lifestyle guru and domestic queen alike, was upset when stuck with a $220,000 tax debt. Stewart claimed she spent very little time in her New York home and felt she did not need to pay taxes on it. Not long after Stewart learned about her tax problems she was famously found guilty of insider trading and sentenced to a year in prison.

posted @ Wednesday, August 27, 2008 4:49 PM | Feedback (0) | Filed Under [ Tax Tips & Articles ]

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