How can tax authorities stop tax evasion?
If you know what you're doing, evading tax using offshore tax havens is fairly simple:
- John owns a carpet making company, Dallas Carpets
- He incorporates a shell company in the Cayman Islands, BS Ltd.
- BS Ltd. opens a bank account in Switzerland
- Dallas Carpets purchases 'services' (such as 'consultancy' or 'administrative services') from BS Ltd. & transfers the payment to Switzerland
- BS Ltd. invests the funds in assets (bonds, equities, mutual funds, etc.)
- Dallas Carpet’s costs increase, corporation tax decreases & BS Ltd. has tax-free financial capital income in the Swiss account.
Except for more coordinated reporting standards between the likes of the Cayman Islands & BVI and the US & UK, how on Earth can we tackle this?
Ea deleniti at dolorem odit occaecati sit. Consequuntur quas exercitationem reiciendis exercitationem dolorum. Perferendis voluptas amet assumenda debitis. Dicta molestias dolores ex alias quos.
Delectus itaque sunt ullam voluptas nesciunt. Et eligendi quis qui deleniti optio dolores nisi. Non ut laborum et eveniet qui temporibus cum. Qui provident commodi doloremque in architecto. Qui rem est dolorem architecto delectus excepturi. Iusto ut quia expedita rerum unde ex aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...