Wesley Snipes, the unlikely face of the tax denial movement, has been acquitted of the most serious charges in his tax evasion case. He was found guilty of three of six lesser charges and could face up to three years in prison. He will also have to pay as much as $17 million in back taxes, interest, and penalties.

A jury found him not guilty on two felony charges of fraud and conspiracy, and other charges related to failing to file and pay taxes from 2002 to 2004. However, he was found guilty of failing to file returns or pay taxes from 1999 through 2001.

However his co-defendants, tax advisers, were convicted of the more serious charges, a sign that "I was just listening to my advisers" defense can work.

According to the New York Times, "Instead of prosecuting all offenders, the Justice Department brings cases against well-known individuals, hoping that widespread news coverage will encourage compliance, a policy known as general deterrence. The Snipes prosecution, like the three earlier cases that resulted in full acquittals, appears to have backfired."

The failure to convict Snipes on the most serious charges will probably embolden tax deniers. The feds had been looking to make a strong statement about the importance of paying taxes and appear to have failed miserably.

Wesley Snipes cleared of most serious charges in tax case originally appeared on BloggingStocks on Sun, 03 Feb 2008 08:40:00 EST. Please see our terms for use of feeds.

Actor Wesley Snipes' trial for tax evasion will begin today in Oscala, Florida. Between 1999 and 2004, Snipes earned $38 million and paid precisely nothing in taxes.

What's his explanation? Ah, that's easy: He doesn't think he has to pay taxes. According to the New York Times, Snipes has "become an unlikely public face for the antitax movement, whose members maintain that Americans are not obligated to pay income taxes and that the government extracts taxes from its citizens illegally."

Snipes will argue that he didn't break the law on the basis of the so-called 861 provision which claims that only "compensation for services" and not wages are taxable. The theory has been rejected in the past but, in recent years the government has lost several major cases involving tax deniers.

In order to be successful, Snipes will have to convince people that he genuinely believed that he did not have to pay taxes. The case's high profile nature makes it a must-win for the government: A loss would be a big boon to the antitax movement, and would doubtless embolden tax evaders.

Wesley Snipes tax evasion trial begins originally appeared on BloggingStocks on Mon, 14 Jan 2008 14:50:00 EST. Please see our terms for use of feeds.

10) The US has not yet requested extradition from Namibia of actor Wesley Snipes who is wanted on tax fraud charges. Snipes, 44, was indicted on eight counts of tax fraud and also of trying to cheat the government out of nearly $12 million in false refund claims and not filing returns for six years. If convicted of all the charges, he could face 16 years in prison. Snipes is not fleeing the US, but, rather, is, working on the set of a film, Gallowwalker, in the Namibian desert.

9) Borrowers get a break. The Federal Reserve kept the benchmark interest rate steady for a third consecutive time, saying the economy was likely to expand at a moderate pace, but still sees inflation risks. The central bank's policy-setting committee voted to keep the overnight federal funds rate target at 5.25%, the level it reached in June after 17 consecutive increases since mid-2004.

8) Sony's quarterly profits dropped 94%. Sony Corporation (ADR) (NYSE:SNE) is struggling with its profit after repeatedly recalling millions of laptop computer batteries because of a potential fire risk. The Japanese firm has also been hit by delays to its PlayStation 3, which will not now be released until next year -- missing the holiday shopping market. About 9.6 million of the lithium-ion batteries have been recalled.

7) Ford's results were the worst of the "big three." The nation's second biggest automaker said its loss widened to $5.8 billion in the third quarter, weighed down by the costs of its massive restructuring plan. Ford Motor Company (NYSE:F) officials also predicted things would get worse in the fourth quarter, as market share drops and Ford pays for further plant closures and restructuring costs.

Continue reading The Top 10 business stories for the week ending Oct. 27: Sinking housing and soaring Dow

The Top 10 business stories for the week ending Oct. 27: Sinking housing and soaring Dow originally appeared on BloggingStocks on Fri, 27 Oct 2006 13:37:00 EST. Please see our terms for use of feeds.