Tax man cometh for 3DO creator Trip Hawkins
Tuesday, 29th March 2011 at 1:39 pm
EA founder 'planned to defeat his taxes via bankruptcy and continue living high life'
Trip Hawkins' bankruptcy plea to cancel $20m in tax obligations has been rejected, according to reports.
According to a Forbes blog, US District Court judge Jeffrey S. White has upheld an earlier bankruptcy court ruling related to tax shelters Hawkins used to shield the personal wealth he gained from founding Electronic Arts in the 80s.
The judge said Hawkins knew he was insolvent after the IRS disallowed his tax shelters and that he “planned to defeat his taxes via bankruptcy and continue living the lifestyle to which he had grown accustomed.”
Evidence cited in the case included the $70,000 purchase of a Cadillac Escalade and monthly expenses in 2005 of $94,900.
Hawkins is now CEO of Digital Chocolate, but made his fortune as founder of EA. It was the demise of a subsequent business, 3DO, that caused his financial problems.
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