Austin billionaire Smith facing federal investigation
Robert F. Smith, the billionaire founder of Austin-based Vista Equity Partners, is facing an investigation by the U.S. Justice Department and the Internal Revenue Service over possible tax crimes, according to a report by Bloomberg News Service.
Citing four people familiar with the matter who spoke on condition of anonymity, Bloomberg reported that federal authorities are looking into whether Smith failed to pay U.S. taxes on about $200 million in assets that moved through offshore structures. Smith has not been charged, and prosecutors may conclude he owes no taxes on those assets, according to the report.
The American-Statesman has not independently confirmed the Bloomberg report. Messages left seeking comment from Smith and Vista Equity Partners were not returned. A spokesman for the Justice Department declined to comment on whether an investigation exists. An IRS spokesman didn’t respond to emails seeking comment.
According to the Bloomberg report, the investigation is looking into whether Smith was actually the beneficial owner of Caribbean-based entities that received proceeds from his company’s first private equity fund. Some funds from those entities went into a U.S. charitable foundation where Smith is president and founding director, the report said.
Read more: https://www.statesman.com/business/20200824/report-austin-billionaire-smith-facing-federal-investigation
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