CLOSING THE NET ON GLOBAL TAX EVASION

Closing the net on global tax evasion. With the advent of large companies moving to countries to avoid paying a fair share of tax, political winds have changed and the climate for reform is long overdue. Governments stretched thin due to overtaxed citizenry, and budget deficits, all demand that corporations that move to countries with lower tax rates not be allowed to pay lower rates than what they should have to. Leaders from five international tax organizations came together in Sydney, Australia, to review the J5s progress in their fight against transnational tax crime and set priorities for the year ahead. The Joint Chiefs of Global Enforcement (J5) was formed in 2018 after a call to arms from the OECD Taskforce on Tax Crime and has been working together to gather information, share intelligence and conduct coordinated operations, making significant progress in each country’s fight against transnational tax crime. The J5 includes the Australian Taxation Office, her Majesty’s Revenue and Customs from the UK, Internal Revenue Service Criminal Investigations from the US, the Canadian Revenue Agency and the Dutch Fiscal Information and Investigation Service. Closing the net on global tax evasion.

Together, each country is better equipped in the fight against those who commit, promote and enable international tax crimes and money laundering. Last month, the group executed a globally coordinated day of action against an international financial institution suspected of facilitating money laundering and tax evasion. Evidence, intelligence and information collection activities such as search warrants, interviews and subpoenas were undertaken in each country and significant information was obtained and shared as a result.

Australian Taxation Office Deputy Commissioner Will Day said the investigation into this financial institution and its clients is just one example of the work the ATO has been doing with the J5 to investigate Australians who are suing offshore arrangements to evade their tax obligations.

American Companies that try to get away with tax evasion may end up in need of Tax Resolution Services.