Global tax investigation casts net over havens
The Australian Tax Office's probe, which has so far put two Australians under criminal investigation, will work in tandem with those announced by US and British governments overnight.
All three inquiries are believed to be based on secret records given to the International Consortium of Investigative Journalists during an investigation into a global network of tax havens last month.
The consortium says the documents include the names of thousands of American, Australian and British citizens.
The US Internal Revenue Service said on Thursday the three nations "have each acquired a substantial amount of data revealing extensive use of such entities organised in a number of jurisdictions including Singapore, the British Virgin Islands, Cayman Islands and the Cook Islands." "This is part of a wider effort by the IRS and other tax administrations to pursue international tax evasion," IRS acting commissioner Steven T. Miller said.
British tax authorities also confirmed on Thursday they were working with Australian and US administrations to examine "extensive use of complex offshore structures" that conceal the assets of wealthy individuals and companies.
"The 400 gigabytes of data is still being analysed but early results show the use of companies and trusts in a number of territories around the world including Singapore, the British Virgin Islands, the Cayman Islands, and the Cook Islands," a statement from the British tax office said.
"The data also exposes information that may be shared with other tax administrations as part of the global fight against tax evasion."
ATO deputy commissioner of serious non-compliance Greg Williams said two Australians were under criminal investigation, while 65 others had been identified as "high risk" because each had moved more than $1 million in or out of Australia without declaring it in their tax returns.
Frequently Asked Questions about this Article…
The article says authorities are investigating alleged tax avoidance schemes after leaked offshore data believed to include about 2.5 million tax records. The Australian Tax Office (ATO) is coordinating with US and British inquiries based on secret records provided to the International Consortium of Investigative Journalists.
The investigation involves Australia, the United States and the United Kingdom. Early analysis of the data highlights the use of entities in jurisdictions such as Singapore, the British Virgin Islands, the Cayman Islands and the Cook Islands.
According to the article, the leaked material is believed to include around 2.5 million tax records and roughly 400 gigabytes of data still being analysed. The documents reportedly include the names of thousands of American, Australian and British citizens.
The article reports the ATO has opened a probe that has placed two Australians under criminal investigation. It also identified 65 others as 'high risk' because each moved more than $1 million in or out of Australia without declaring it on tax returns.
Yes. The article states the data may be shared with other tax administrations as part of a global effort to tackle international tax evasion, and that the US, UK and Australian administrations have acquired substantial amounts of the material.
Authorities are examining the extensive use of companies and trusts and other complex offshore structures that can be used to conceal assets. For everyday investors, this matters because tax authorities are intensifying scrutiny of offshore arrangements and undeclared cross‑border transfers.
Yes. The article confirms that criminal investigations have already begun in Australia (two people named), and that authorities in the US and UK are also pursuing inquiries based on the same material.
The article indicates a clear global push to pursue international tax evasion and to share data between administrations. Investors who have used offshore entities or moved large sums internationally should be aware their arrangements are under heightened scrutiny and that undeclared transfers (the article cites movements over $1 million) have been identified as high risk.
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