Income generated from assets held in tax havens is often not disclosed, or included, in the controlling taxpayer’s tax returns. The amount of income not disclosed, and taxes avoided, will never be known. But what is certain, is that with $6 trillion of assets in tax havens, the income generated (and untaxed), must be phenomenal.
All countries are urging their taxpayers with offshore assets to declare their interests, ahead of a global crackdown on international tax havens. ‘Now is the time for individuals with offshore income to get their affairs in order and avoid steep penalties and the risk of criminal prosecution for tax avoidance,’ said Commissioner of Australian Taxation Chris Jordan.
Information sharing between countries has now increased significantly with banking data exchanged automatically and the G20 promoting global tax transparency.