International Tax Avoidance
At a recent meeting of the Joint International Tax Shelter Information Centre (JITSIC) in Kyoto leaders from countries including Australia, China, Japan, United Kingdom and the United States discussed global taxation issues. One of the main areas addressed during the meeting was the subject of international tax avoidance and the likely impact of the worldwide economic difficulties.
The JITSC agreed to continue to jointly curb what they see as abusive tax avoidance schemes and other cross-border transactions which put tax take at risk. Specifically the JITSIC agreed to look at off-shore arrangements by wealthy individuals.
The JITSC was established in 2004 by the tax authorities of Australia, Canada, the United Kingdom and the United States, to assist tax authorities in identifying and reducing cross-border tax avoidance.
Following the meeting, HMRC’s Permanent Secretary for Tax , Dave Hartnett, said:
"JITSIC’s work has led to major improvements in international tax compliance and much improved co-ordination of the international drive to combat unfair tax avoidance. JITSIC is adapting fast to global economic circumstances by concentrating on the effects of the world economic down turn to ensure that member states will not be unfairly denied vital tax revenues."