Tax Evasion Tops List of Priorities at G-8 Summit

The Internal Revenue Service's recent crackdown on tax evasion and fraud may have initially appeared to be an American phenomenon, but tax law violations appear to be an international issue. As the leaders of the international community meet for the upcoming G-8 summit, tax issues and combating tax evasion are expected to top the list of the summit's priorities in 2013.

tax-evasionTaxes are central to maintaining countries' economic viability, and the U.S. along with other developed nations consider closing the tax gap and cracking down on crimes that are taking away from federal revenue to be crucial in strengthening their economies. Currently, the eurozone is in a double-dip recession, while the Japanese trade deficit continues to widen. Economic growth in the U.S., while steady, remains slow. Further, foreign banks that have been found to be complicit in helping Americans evade taxes are facing fines, lawsuits and other financial consequences that may impact their solvency. Most notably, Wegelin and Co., Switzerlands's oldest bank and the 13th oldest financial institution in the world, was forced to close its doors after admitting to helping U.S. tax evaders carry out their crimes.

In response to these issues, the U.S. has entered into international agreements with several other countries to share information about account holders with offshore accounts. In addition to investigating the more than $8.5 trillion tied up in offshore accounts, the U.S. is also examining the tax habits of the largest corporations, such as Apple, Inc. and Starbucks.

Leaders of the G-8 Summit argue that coordinated global action is essential in helping curb and detect tax avoidance and evasion, according to Reuters. The countries that make up the G-8 - Canada, the United States, the United Kingdom, France, Germany, Italy, Japan, and Russia - plan to encourage territories and popular tax havens to enter into multinational agreements that emphasize transparency and better reporting standards.

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Frank Brunetti has been practicing law for over thirty years in the areas of estate and wealth preservation, tax planning for business entities and complex tax matters. He is admitted to the New Jersey and New York Bars as well as the United States Tax Court. Mr. Brunetti provides representation in federal and state tax matters, IRS controversies, estate and business planning and guidance for the preparation of wills and trusts as well as the administration of estates. For more information, please visit Frank Brunetti's full biography at Scarinci Hollenbeck

One Response to “Tax Evasion Tops List of Priorities at G-8 Summit”

  1. berka dzekem

    n as much as i appreciate the western nations move to crack down on tax evasion and corporate tax avoidance via fighting banking secrecy,i will appeal to them that they should in turn send banking info to the 3 rd world especially Africa as it has been a toll on their Balance of Trade.This always takes the form of fiscal conventions where in we are always marginalised.

    Reply

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