Global tax authorities target institutions

The Joint Chiefs of Global Tax Enforcement (J5), an international group of tax authorities, reports that it’s involved in dozens of high-end investigations involving global financial institutions and others that are allegedly enabling tax evasion.

Following meetings in Washington, D.C. this week, the Canada Revenue Agency (CRA) — which is part of the J5, along with tax authorities in the U.S., the U.K., Australia and the Netherlands — reported that, “the J5 is involved in more than 50 investigations involving sophisticated international enablers of tax evasion, including a global financial institution and its intermediaries who facilitate taxpayers to hide their income and assets.”

The J5 report noted: “These highly harmful, high-end enablers of tax evasion were previously thought to be beyond the reach of the member countries,” adding that the agencies are also cooperating on cases involving alleged fraud, money laundering and smuggling as well as tax evasion.

“When we launched the J5 we were clear that we wanted to use our combined powers and expertise to close the net on offshore tax evaders, international organized crime groups and those who help them. In just 12 months, that net has tightened with 18 suspected enablers in our sights and a further 50 cases in the pipeline,” said Simon York, director of the U.K.’s HMRC fraud investigation service.

“Tax crimes continue to evolve in their level of sophistication and complexity, which is why it is essential that we collaborate with our international partners to combat tax evasion,” said Stephane Bonin, director general of the CRA.

“After one year working with the J5, we are now all better equipped to conduct operations together in the fight against those who commit, promote and enable international tax crimes and money laundering,” Bonin added.

The meeting of the J5 coincided with a global cyber-training event hosted by the U.S. Internal Revenue Service at the World Bank. The training of 120 law enforcement participants from 20 countries focused on emerging areas such as virtual currency, blockchain and the dark web.

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