The Global Industry of Tax Evasion…As Revealed By The Paradise Papers

Posted in Offshore Account Update on February 28, 2018 | Share

German reporters received 13.4 million confidential electronic documents as part of a major leak of financial records. These confidential electronic documents shed light into offshore investing and shed light into the ways in which wealthy individuals and companies from around the globe avoid or evade taxes by parking their money in different parts of the world.  The documents have been dubbed, “The Paradise Papers.”

As The Guardian reports, the Paradise Papers do more than just reveal where the wealthy are hiding cash. The Papers reveal the “commoditization” of tax avoidance, shedding light on the ways in which companies and financial professionals have made big business out of helping people to avoid paying taxes in their home countries.

When documents like the Paradise Papers come out, this gives governments across the world the information they need to not only go after individuals, businesses, and other entities who evaded taxes – it also gives countries insight into how tax evasion and avoidance efforts work so countries can pass new regulations and improve their investigative efforts. In other words, the release of papers like the Paradise Papers mean that offshore investors who aren't in full compliance with tax rules face a bigger risk of being caught.

If you have undeclared offshore funds and you are concerned that you could come to the attention of taxing authorities and face legal trouble as a result, you should contact a Washington DC tax evasion attorney for help as soon as possible. An attorney can assist you in identifying steps you can take to limit financial loss and hopefully protect against serious consequences including the threat of criminal prosecution.

How the Paradise Papers Reveal the Big Business Behind Tax Avoidance

As The Guardian explained, the Paradise Papers show a dramatic expansion in offshore tax providers since the financial crisis. These providers now have vast networks of lawyers, accountants, and tax specialists who help wealthy clients find ways to avoid taxes on their income and investments.

The Deputy Commissioner of the Australian Taxation Office, for instance, indicated that the information obtained from the Paradise Papers revealed how many intermediaries – including banks, law firms, and accountants – have built entire businesses around offering wealthy people tax avoidance packages. He commented ““The Panama Papers and the Paradise Papers led us to think about, well, what’s happening with these intermediaries that are encouraging this type of behavior?”

While taxing authorities knew that there were of course some service providers who helped to facilitate efforts to hide funds offshore, the Paradise Papers reveal that the industry is a large and growing one including some companies with 46 different jurisdictions across the globe. 

The papers also showed how tax specialist intermediaries typically specialize in providing help with offshore accounts in different parts of the world. What's more, some of the specialists create entire package deals that are promoted like holiday packages that include everything individuals need: incorporation, the creation of an offshore bank account, a business address, and more.

Because taxing authorities now have more insider information on the processes taking place, it's likely that further changes to the law will be coming. If you have offshore funds and are concerned about a crackdown, you should contact Washington DC tax evasion attorney Kevin Thorn for help as soon as possible.

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