The Internal Revenue Service is initiating enforcement action involving more
than 100 US taxpayers, to ensure proper income reporting and tax payment in connection
with accounts in Liechtenstein.
The national tax administrations of Australia, Canada, France, Italy, New Zealand,
Sweden, United Kingdom, and the United States of America, all member countries
of the OECD's Forum on Tax Administration (FTA), announced recently that they are working together following
revelations that Liechtenstein accounts are being used for tax avoidance and
evasion.
"Combating off-shore tax avoidance and evasion are high priorities for
the IRS," explained IRS Acting Commissioner Linda Stiff.
“We are determined to protect the United States tax system from abuse
and ensure that taxpayers pay what they owe. We will use all our authority to
fairly and effectively enforce our tax laws. It should be clear from recent
events that there is no safe hiding place for the proceeds of tax avoidance
and evasion. Anyone with hidden income and gains would be well-advised to make
a prompt and complete disclosure to the Internal Revenue Service," she
added.
The IRS receives information from many sources that can result in enforcement
activities to ensure all taxpayers are in compliance with the tax laws.
The
United States maintains a robust network of bilateral tax treaties and tax information
exchange agreements with foreign nations to ensure mutual interests in transparency
and cooperation in addressing potential tax abuse.
These exchange of information provisions are vital to addressing the challenges
of ever-expanding flows of capital, people, and transactions across borders.
All the countries now working together were represented at the FTA September
2006 meeting in Seoul, Republic of Korea, when Tax Commissioners from more than
30 countries identified the use of tax haven bank accounts as a major threat
to successful tax administration.
More recently, at the FTA 2008 Meeting in Cape Town, South Africa, the Commissioners
agreed to further study the role of banks in tax compliance.
The Commissioners will continue to re-examine the effectiveness of measures
in place to protect revenue bases.
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