Four Nations To Begin Cooperating On Tax Matters

by Leroy Baker, Tax-News.com, New York

17 March 2004

The commissioners of the tax administrations of Australia, Canada, the United Kingdom and the United States have begun discussions on the formation of a joint task force to increase collaboration and coordinate information-sharing about abusive tax transactions.

The primary motives of the closer cooperation will be to exchange information about specific abusive transactions and their promoters and investors within the framework of the countries' existing bilateral tax treaties.

By sharing expertise, best practices and experiences in the field of tax administration, the authorities hope to “better understand abusive tax transactions and emerging schemes.”

“While tax administrations operate primarily within their own borders, many abusive tax transactions employ strategies that cross borders and many of the promoters of these transactions operate globally without regard to national boundaries,” the agencies explained in a joint statement.

Australia's tax commissioner Michael Carmody added: "This initiative is a major step forward in tackling abusive tax schemes."

Meanwhile, IRS Commissioner Mark W. Everson noted that the move represents “an unprecedented step in the battle against the plague of abusive tax transactions.”

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