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EYE-BALL Opinion – Whistleblowers – love ’em’ or hate ’em’

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Title:
– Whistleblowers –
– love ’em’ or hate ’em’   –
| Author: EYE-BALL Opinion | 29th Oct 2012 |
A story published by Reuters today makes one pause about the role of ‘whistleblowers’. Much has been written in the Julian Assange case and how the Wikileaks whistleblower web site has harmed America and its secrets, yet this story presents the other side of the coin –

The USA’s IRS (Internal Revenue Service) has confirmed a payment to a ‘whistleblower’ of some US$40 million for whisle blowing on a tax cheat. The story appears below:

U.S. tax whistleblower collects $38 million from IRS – lawyer


| Date: 29th Oct 2012 | Link to On-Line Story. |

(Reuters) – The U.S. Internal Revenue Service has awarded $38 million (23.7 million pounds) to a whistleblower for information about a tax dodge involving a large corporation, according to the informant’s lawyers.

The Ferraro Law Firm, which represented the whistleblower, would not identify its client or the corporation involved, saying only that it was a Fortune 500 company.

“The IRS never tipped their hand that they had a whistleblower” while the agency was going over the corporation’s books, said Ferraro lawyer Scott Knott.

The IRS sent the check last week, Knott said. He declined to say what percentage of the $38 million Ferraro took as a fee.

It is unknown how much money the IRS collected in additional taxes. But the agency could have collected up to $250 million, based on the law determining how much a whistleblower can collect for information, which ranges between 15 and 30 percent of the tax recovery.

The case was filed in early 2008, after the IRS overhauled its whistleblower office in 2006.

(Reporting by Patrick Temple-West; Editing by Kevin Drawbaugh and Dan Grebler)

It is known that Police resources all over the world use informants –  i.e. CI’s – to assist with the monitoring of criminal activity – how is that any different to ‘whistleblower’ activity. Surely the Assange is the ‘whistleblower’ tactic used in reverse – and in any Court, a defence along these lines would be enough.

It is only when the matter of ‘National Security’ is introduced that any Court Action could proceed and then the legal debate would become a closed session to protect sources and data.

This Tax fraud whistleblower gets a bonus measured as a fraction of the employers $40 million – that incentive has to challenge the ‘client privilege’ laws and this is not discussed in the story.

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