To settle US charges of tax evasion, Russian billionaire pays $500 million

Russian billionaire Oleg Tinkov has paid tax dues and fines of around $509 million. On October 1, he had pleaded guilty to felony charges of concealing over $1 billion in assets to avoid paying taxes on them as the tycoon gave up his US citizenship in 2013.

To settle US charges of tax evasion, the banking and investment tycoon was required to pay fine, the US Justice Department said on Friday.

Russian-born Tinkov isthe founder of Tinkoff Credit Services or popular online Tinkoff Bank andthe owner of the professional Tinkoff Cycling Team.

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The 53-year-old Tinkov became a US citizen in 1996, said the Justice Department.

In 2013, he took Tinkoff Credit public on the London Stock Exchange. His holding in it was valued over $1.1 billion.

Just three days after the IPO, Tinkov sought to renounce US citizenship at the US embassy in Moscow.

Tinkov submitted documents saying the tycoon only had $300,000 in assets when he reported his full wealth which was required in the citizenship renunciation process and paid taxes on it.

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In a 2019 indictment, the US Treasury said Tinkov owed around $249 million on his earnings.

On Friday, in the settlement announced, he had to pay more than double to cover accrued interest and penalties.

Last year, the US Justice Department had sought his extradition from Britain to face the charges.

(With inputs from agencies)