Revenue and other international tax administrations meet on 'Panama Papers'

Revenue officials attended meetings in Paris on Monday and Tuesday (16/01/17 and 17/01/17) this week, where 30 Revenue Authorities shared their findings on investigations arising from the Panama Papers. The meeting focussed on tax intermediaries including financial institutions, advisers, lawyers, and accountants, who facilitate tax evasion.

This was the third meeting of the Joint International Taskforce on Shared Intelligence and Collaboration (JITSIC), a group of senior tax officials, which convened at the OECD to exchange information, discuss progress on compliance activity and understanding of the role of Mossack Fonseca, and its relationship with other intermediaries.

The meeting included the largest ever simultaneous exchange of information, based on legal instruments under the OECD and Council of Europe Multilateral Convention and tax treaties. Member countries pooled evidence from domestic efforts such as data analytics, voluntary disclosures, interviews with taxpayers, and document reviews, on key intermediaries. The sharing of this information within a group of this size is unique, and sets the basis for greater cooperation amongst tax administrations.

Since the last meeting, significant advances have been made, including clearer understanding of the types of evasion facilitated by intermediaries and new techniques for collating intelligence. Important progress has also been made in compliance activity internationally, with over 1,700 taxpayer reviews and audits initiated, over 2,550 requests of information, the identification of a target list of 100 intermediaries, and a large number of taxpayers have come forward to disclose their offshore operations.

In this context, Revenue reminds Irish taxpayers and their representatives that from 1 May 2017, tax defaulters who use offshore facilities to hide income, accounts or other assets will no longer have the facility to make a voluntary disclosure. This means that those who do not come forward before the end of April will face penalties of up to 100% of the tax evaded, publication in the List of Tax Defaulters and potentially criminal prosecution.

JITSIC will continue to draw on the best intelligence capabilities from tax authorities around the world and share best practices for data analysis and collaboration on intelligence. Accordingly, Revenue and other tax administrations will share information under existing legal frameworks for exchange, will operate in accordance with their domestic laws, policies and regulations, and will work closely with other domestic agencies to identify beneficial owners, and the role of intermediaries and institutions in facilitating tax evasion.

More information about JITSIC is available at: www.oecd.org/tax/forum-on-tax-administration/ftajitsicnetwork.htm .

[Ends:19/01/2017]