Revenues surge as global crackdown on tax evasion gathers pace

As stated in the article below, $10 trillion is still being hidden in offshore financial centers. Only a fraction of these tax cheats have come forward to declare their assets (despite the claims in the article). In the US less than 50,000 taxpayers have disclosed their offshore accounts under the IRS Offshore Voluntary Disclosure Program and paid less than $7B.

Since estimates are that US, state & local governments lose nearly $200B from widespread tax evasion from offshore accounts (held by the wealthiest Americans), collecting less than $7B in 6 years (since the first OVDP in 2009) is a “rounding error” and not a successful tax collection of undisclosed offshore income iUS/State local governments are out over $1 trillion since 2009, how is less than $7B in collections a “success”?

The article states that in 2017 the OECD will be electronically and digitally exchanging information which will “end” offshore tax evasion. If the US collection efforts to date are any indication, with up to 10m US taxpayers with reputed offshore accounts worth an estimated $2 trillion, there is a lot of “room for improvement”.

Revenues surge as global crackdown on tax evasion gathers pace

By Vanessa Houlder, FT.com

Hundreds of millions of tax dollars are flooding into exchequers across the world, as governments offer evaders a last chance to own up to undeclared accounts.

Taxpayers with funds stashed offshore are coming forward voluntarily in their tens of thousands ahead of new transparency rules that will allow tax authorities to probe secret foreign accounts.

The Paris-based OECD said last week that many transgressors were facing “the last window of opportunity” to disclose such information. Dozens of countries will begin to exchange tax files automatically in 2017 as part of a co-ordinated global crackdown on evasion, exposing non-compliant taxpayers to an unprecedented risk of prosecution.

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