Law Firm Ordered To Pay Tiësto $17M Over Faulty Tax Advice

Law Firm Ordered To Pay Tiësto $17M Over Faulty Tax Advice

A Dutch appeals court has officially ordered the international law firm Greenberg Traurig to pay nearly $17 million (14.5 million euros) in damages to Tiësto. The ruling concludes a protracted legal battle stemming from incorrect U.S. tax advice provided to the legendary DJ back in 2012.

According to court documents, the Amsterdam Court of Appeal determined that faulty guidance from a tax specialist at the firm caused Tiësto to inadvertently trigger U.S. tax residency status after spending an excessive number of days in the country. This oversight resulted in years of improperly filed tax returns.

The court found that had the artist received accurate professional guidance at the time, he would have adjusted his travel schedule to avoid the tax residency threshold. Upon discovering the error in 2018, Tiësto took proactive steps to correct his filings with U.S. authorities, ultimately paying the outstanding taxes along with significant financial penalties.

This latest decision overturns a previous lower court ruling, which had acknowledged the advice was flawed but argued that the DJ had not suffered quantifiable financial harm. The appeals court rejected that stance, confirming that the damages were a direct result of the firm’s professional negligence. In addition to the $17 million in damages, the firm has been ordered to cover approximately €35,000 in legal costs.

The case has drawn significant attention due to its connection to the broader scrutiny of celebrity tax advisors within the electronic music industry. It notably involves the legacy of former tax attorney Frank Butselaar, who previously represented high-profile artists including Tiësto and Afrojack before facing his own legal challenges regarding tax fraud investigations in the United States.

While this ruling marks a major victory for the artist, the legal saga may continue, as Greenberg Traurig retains the right to appeal the decision to the Dutch Supreme Court.