23rd July 2018
As regular readers of our blogs will know, we believe international tax compliance is the biggest challenge recruiters need to address. There’s certainly no doubt that global authorities are clamping down on tax evaders and we’ve been vocal on the subject for many months now. The latest key development that agencies need to be aware of is J5, which now makes it easier for international authorities from five global destinations to share the intelligence they hold on tax crime.
What exactly is J5?
According to recent reports, the government agencies of five countries have joined forces to create The Joint Chiefs of Global Tax Enforcement (J5), an international coalition designed to combat international tax crime, money laundering and the threats posed by cryptocurrencies and cybercrime. The member countries are the UK, Australia, Canada, the Netherlands and the United States, all of which face similar threats from offshore tax evaders and organised crime rings.
The alliance was created as a result of the Organisation for Economic Co-operation and Development’s (OECD) call for countries to do more to tackle the problem.
In a statement commenting on this latest development, the UK Government said: “By having a small number of partners, it will allow the group to be more agile and flexible to develop new approaches and carry out joint operations. Any results and benefits will be shared with wider international partners to develop a global understanding of offshore crime.”
The clampdown on evaders
The formation of J5 clearly demonstrates the commitment that global authorities have in the fight against those who enable transnational tax fraud. Don Fort, Chief of the United State’s IRS Criminal Investigation, highlighted why it has become crucial for countries to share their intelligence tactically, stating: “We cannot continue to operate in the same ways we have in the past, siloing our information from the rest of the world while organised criminals and tax cheats manipulate the system and exploit vulnerabilities for their personal gain.” As Simon York, Director of the UK’s HMRC Fraud Investigation Service, further warned, this collaborative approach will “make the world smaller for those seeking to exploit our systems.”
Don’t risk falling foul of the law
This new coalition shows that there really is no place for fraudsters to hide. And, with the risks increasing, this means that your agency must ensure that it takes every possible step to manage risk and be sure that it is operating in a way which is compliant with relevant international tax laws. We strongly advise partnering with experts who will ensure that you have the correct due diligence and compliance procedures in place. Contact the team today.