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News and views of the events that shape and change our world
UK to Double Tax Evasion Penalty
Welcome back to International Arbitrage!
The maximum penalty for offshore tax dodging will double to 200% of the unpaid tax, the government has announced in its pre-Budget report.
The plan is one of 14 separate new measures announced aimed at saving as much as £5bn in lost tax every year.
At the moment the maximum fine that can [...]
Australia Hops on Tax Amnesty Bandwagon
Australia has become the latest nation to set up a tax amnesty scheme to encourage recalcitrant taxpayers to come clean on their offshore holdings. From the Sydney Morning Herald:
Individuals and companies who fear that their offshore tax arrangements may spark a criminal investigation have been offered an amnesty by the Australian Tax Office.
This precedes [...]
UK, Australia Seek UBS Data After US Tax Case
Zurich (Reuters) Authorities in Britain and Australia have requested information from UBS after the Swiss bank agreed in August to disclose some 4,450 client names to settle a U.S. tax case, the bank confirmed on Sunday.
UBS said in a note to its third-quarter financial statement, published last week, that tax and regulatory authorities [...]
British Revenuers Take to Social Media
This week, Dave Hartnett, HM Revenue & Customs’ Permanent Secretary for Tax, appeared in a pointed two-minute video warning that people “fiddling” their taxes could face jail.
While we will refrain from comment of a political nature, it is interesting to see that tax collectors around the world are now leveraging the power of social media [...]
Offshore Tax Bill Sought as Health Bill Add-On
A prominent Democrat will offer a controversial bill to target tax evasion by U.S. citizens and corporations to the main healthcare reform legislation in the Senate, an aide said on Wednesday.
Democrat Senator Carl Levin will offer his Stop Tax Haven Abuse Act as an amendment to the Senate Finance Committee’s healthcare bill when it reaches [...]
Sixth UBS Client Steps Forward in IRS Crackdown
A retired Boeing sales manager from the Seattle area became the sixth client of Swiss banking giant UBS to face criminal charges in this year’s federal crackdown on secret offshore bank accounts as he pleaded guilty Monday to filing a false tax return.
Roberto Cittadini admitted he hid nearly $2 million in Swiss accounts, according to [...]
Australia Ponders Offshore Tax Revisions
Bloomberg reports that the Australian Tax Office is considering changes to its voluntary disclosure program, providing stiff penalties for Australians who do not declare offshore income and assets.
Bloomberg story here.
In-depth story at Australian Financial Review here.
Bahamas Not Changing Offshore Laws
Bahamas will cooperate with specific investigations into suspected tax evaders and fraudsters but will not change its bank secrecy laws to allow “fishing” in its offshore finance sector by foreign investigators, the country’s prime minister said on Tuesday.
In an interview with Reuters, Hubert Ingraham joined other leaders of Atlantic and Caribbean offshore finance centers [...]
IRS Amnesty Deadline Extended for Offshore Accounts
The Internal Revenue Service will announce on Monday that it is extending its amnesty program intended to root out those suspected of using offshore accounts to evade taxes. The move comes as a flood of wealthy Americans with secret accounts in Switzerland and elsewhere are coming forward to disclose their hidden assets.
The I.R.S. will give [...]
Canada Next in Line to Attack UBS
UBS, Switzerland’s biggest private bank and one with substantial operations worldwide, agreed in August to reveal the names of nerarly five thousand of its wealthiest US clients under intense pressure. Many people believed that the best offshore banks were the biggest – or simply went for the convenience factor given the Swiss bank’s large North [...]