Tax fraud and tax evasion are not victimless crimes!!

[suzy]

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Tax fraud and tax evasion are not victimless crimes: they deprive governments of revenues needed to restore growth and jeopardize citizens? trust in the fairness and integrity of the tax system. Today?s commitment by so many countries to implement the new global standard, and to do so quickly, is another major step towards ensuring that tax cheats have nowhere left to hide.

In the previous issue of frontiers in tax we reported on the background to the development of Automatic Exchange of Information (AEoI) and explored the emerging framework of international tax transparency.3 That article noted that at their St. Petersburg Meeting of September 2013, the G20 announced that they expected to begin Automatic Exchange of Information by the end of 2015.4
A key subsequent step was the OECD publication on 13 February 2014 of a multilateral Standard for automatic exchange of financial account information.5 This Standard was developed in partnership between the OECD and the G20 countries, and in close co-operation with the EU. The document is in two parts: Part I contains the introduction to the Standard; Part II contains the text of a Model Competent Authority Agreement (CAA) and a Common Reporting and Due Diligence Standard (CRS). It defines a Standard for mutual exchange of information on account holders with foreign tax residence, account balances, income and gross proceeds from certain financial transactions.


The new Standard was endorsed in May 2014 during the OECD?s annual Ministerial Council Meeting in Paris by all 34 member countries, along with Argentina, Brazil, China, Colombia, Costa Rica, India, Indonesia, Latvia, Lithuania, Malaysia, Saudi Arabia, Singapore and South Africa.6 Fortyfour countries and jurisdictions have committed to early adoption of the Standard and implementation by 2016 for exchange beginning in 2017.7


On 21 July 2014, the OECD released a detailed commentary on the standard to help ensure its consistent application.8 The OECD also plans to provide information and guidance on the technical measures necessary to implement the processes of actual information exchange, including compatible transmission systems and a standard format for reporting and exchange. This latter component is scheduled to be presented in time for the G20 meeting of finance ministers in September 2014.


According to the current implementation timeline of the early adopters, the new regime will start in 2016 by obliging financial institutions to classify all new accounts from 1 January 2016 and all pre-existing accounts as of 31 December 2015.

Most important to pay attention to are the following citation and countries:

There has been significant progress since we first reported on the development of Automatic Exchange of Information (AEoI) in an earlier issue. Beginning with the OECD?s 13 February publication of a multilateral Standard for automatic exchange which was endorsed in May 2014 by all 34 member countries, along with Argentina, Brazil, China, Colombia, Costa Rica, India, Indonesia, Latvia, Lithuania, Malaysia, Saudi Arabia, Singapore and South Africa.

The deadline is 31 December 2015 where all the participating countries will have Automatic Information Exchange Agreements in place, hiding from the authorities after that date will be almost impossible if you are setup with your offshore company in any of these countries.


Some relevant link: More...

 

[JohnLocke]

For the moment and the next few years there will still be countries that don't comply to the FATCA or most of the other OECD thinking. However, anyone should consider to stay behind the boarder of a lgela setup to avoid any trouble in the future if you consider your business setup to be long term!

 

[thorsten]

Good article, thank you for sharing your information.

 

[pontiacG8]

I always support tax evasion if it is done in a legal manner

 

[Propeller]

To avoid to pay the high tax rate locally and foreign is not a big problem to sort out if you know a good tax lawyer or someone who knows applicable tax laws. It is important to get straight information and up to date law policies in order to avoid any trouble. Personally I consulted a tax adviser in the Seychelles and locally in Austria so I got some great and useful information from Admin's team.

 

[wonderwilly]

To avoid to pay the high tax rate locally and foreign is not a big problem to sort out if you know a good tax lawyer or someone who knows applicable tax laws. It is important to get straight information and up to date law policies in order to avoid any trouble. Personally I consulted a tax adviser in the Seychelles and locally in Austria so I got some great and useful information from Admin's team.

I totally agree with you propeller, it is a question about who is looking at it and the context of how you are doing things!

 

[agerba]

Interesting read, thanks sharing.

 

[footi gupt]

good info..
I appreciate your time and effort to put up and taking out this news on our front end.
however i would like to know latest updates on this as well.
Thank you

 

[myshufflemix]

This is 2015 thread.. But regarding on the topic, I will only support tax evasion if and only if they will use those money to better compensate their employees.

 

[deadpool]

If tax evasion is a sin, 99% of the forum members should feel guilty.

 

[RamsayB]

If tax evasion is a sin, 99% of the forum members should feel guilty.

Hahaha I agree with you mate. I believe we do it for a reason, to save money for our future and for our family! And family is more important than the government itself!

 

[infotrader]

Those are some wonderful citing's. Yeah several countries don't have a fair tax system. Some jurisdictions vent all their anger on particular niches. However, calling tax evasion a victimless crime is a little too much. In 2012, 32 individuals were slammed a 150 years of imprisonment for being top tax criminals. Senior judges have made their point clear about no mercy on large scale tax evasion.