Archive for October, 2016

US Offshore Disclosure Revenue above USD 10 billion

Wednesday, October 26th, 2016

With 55,800 taxpayers participating in the US Offshore Voluntary Disclosure Program (OVDP) since 2009, the Internal Revenue Service (IRS) announced that it has collected more than USD 9.9 billion in taxes, interest, and penalties from the initiative to date.

The IRS added that another 48,000 taxpayers have used the streamlined filing compliance procedures to correct prior non-willful omissions and meet their federal tax obligations, paying approximately USD 450 million in taxes, interest, and penalties.

Both the Offshore Voluntary Disclosure Program and the streamlined procedures allow taxpayers with undisclosed income from foreign financial accounts and assets to correct and regularize their affairs while mitigating penalties.

IRS Commissioner John Koskinen said: “The IRS has passed several major milestones in our offshore efforts, collecting a combined USD 10 billion with 100,000 taxpayers coming back into compliance. He noted that, when receiving more information on foreign accounts, people’s ability to avoid detection becomes harder and harder. So, the IRS urges those people with international tax issues to come forward to meet their tax obligations.

Besides the OVDP and the streamlined procedures, the IRS noted that, under the Foreign Account Tax Compliance Act and the network of inter-governmental agreements between the US and partner jurisdictions, automatic third-party account reporting has entered its 2nd year.

UN expert calls on new boss to fight Tax Havens

Thursday, October 20th, 2016

The new United Nations Secretary-General, António Guterres, is being asked by one of the body’s human rights experts to call a world conference on tax avoidance and evasion, with a view to abolish all tax havens.

The UN’s independent expert on the promotion of a democratic and equitable international order, Alfred de Zayas, said that Guterres’ appointment as the new UN leader offered “a unique opportunity to advance the fight against tax evasion and illicit financial flows” when the world’s attention is on these crucial problems.

“Trillions of dollars necessary for combatting extreme poverty and addressing climate change are being kept offshore, thus escaping just taxation and effectively stealing hundreds of billions of dollars each year from the public treasuries,” he stated.

He also noted: “Widespread tax avoidance, tax evasion, tax fraud and profit-shifting, facilitated by bank secrecy and a web of shell companies registered in tax havens, are now routinely documented, but their true human cost is only revealed progressively”, following the publication of his report to the General Assembly on these matters.

According to him, a growing number of human rights experts were pointing to tax abuse as a human rights issue.

“Corruption, bribery, tax fraud and tax evasion have such grave effects on human dignity, human rights and human welfare that they shock the conscience of mankind. They should be prosecuted nationally and internationally,” de Zayas said.