Clamping Down On Worldwide Expat Tax Evaders

By 2018 there will be 93 countries working together through the sharing of information to crack down on anyone who is considered to be a suspect of tax evasion.

This is a big step towards catching up to those expat tax dodgers who have not been transparent in regards to their income and now the large collection of governments worldwide are closing in on them. The course of action is set to begin next year, 2016 with the task of information collection being undertaken.

What Will Be Used?

The information that is set to be collected and shared among the 93 countries will include everything that the governing bodies will need to determine whether an individual is committing a crime.

From your account balance to even your financial assets will be used as information to assess your part in paying tax. The governments will also analyse your interest, dividends and sale proceeds from financial assets and if they find that you have not been fulfilling your tax liabilities then you may be prosecuted.

The current process that are taken by tax authorities requires them to make a formal request for any details on individual’s finances, these requests are made to the overseas banks and related institutions.

Who Are Involved?

At the start of this new agreement, there will be an initial 58 countries which will include Channel Islands and Isle of Man that are considered the Expat Offshore Centres. Also, there will be a number of countries from across the EU. Other nations that are notorious as tax havens are Bermuda, the Cayman Islands, Liechtenstein, Argentina and South Africa who are also set to take part in this arrangement.

With Australia, Canada, China, Singapore, Qatar, Monaco and Switzerland joining as part of the remaining 35 countries the fundamental change in how information is share will be in full flow.