Australian Makes Requested Secrecy Case Submission to US

July 30, 2009 Offshore BankingTax HavensTaxation in AustraliaTaxation in USA  No comments

The Australian Taxation Office (ATO) has made its submission to US Senate Committee on Homeland Security and Governmental Affairs regarding the use of entities incorporated in the United States for possible secrecy haven purposes.

In an effort to stem tax evasion, avoidance, money laundering and other non-compliance activities, the US Senate Committee on Homeland Security and Governmental Affairs requested that the ATO provide some case studies involving US entities and their possible use in non-compliance activities in Australia. The ATO has now sent their response, consisting of an introduction and eight cases and their analysis.

The ATO made comments in their response saying that secrecy havens still being a high compliance risk to Australia. Australia’s current load of compliance activities spans to over 700 audits and 23 criminal investigations this year, which together raised in excess of $300 million in tax liability and a further $75 million in restraining of criminal assets. In the view of the ATO, some entities which are incorporate in the US do hold similar properties to those incorporated in secrecy havens, and therefore could contribute to this amount.

The submission, which consists of eight individual cases of US incorporated entities leading to possible non-compliance, could theoretically influence law changes in the US in regards to international taxation.

The cases and their assessments can be viewed on the ATO website.

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