Data-leaks such as the Panama Papers of last year and the recent ‘paradise papers’ demonstrate that tax fraud is a global issue requiring a global response.
Modern tax crime and other financial crimes are often conducted across domestic borders. This means collaboration is important to responding to tax crimes and stopping the illicit flow of money across our borders.
For this reason, many jurisdictions and development agencies have committed to building capacity to investigate tax crimes effectively, including in connection with the sustainable development goals.
In recognition of this, more than 200 tax crime and economic crime experts came together last week and discussed ways to tackle these crimes more effectively at the fifth OECD forum on tax and crime, in London where it was noted that building a comprehensive global response to tax crime cannot be achieved by one part of government, or one country alone, instead government agencies working in partnership.
Although professional advisors and intermediaries can play a really important role in helping the financial system run smoothly, some of the recent big data leak stories show that a number of professionals enable some of the most complex and global forms of tax crime.
The forum, which brought together experts from more than 65 countries (Nigeria inclusive) and international organisations on tax and economic crime areas including tax, customs, anti-corruption, anti-money laundering, police, and prosecutors, underlined the threat that tax and economic crime poses to national and international finances, society, and security.
Participants supported the significant efforts being made through the OECD International Academy for Tax Crime Investigation, including the special support of Germany and Italy in establishing the Pilot Africa Academy Programme for Tax and Financial Crime Investigation. They applauded the additional funding commitments made by the United Kingdom and the Netherlands, while they also considered how their own jurisdiction can participate in these efforts, including in efforts to expand the activities of the Academy.
Tax crimes, money laundering and other financial crimes threaten the strategic, political and economic interests of both developed and developing countries.
They also undermine citizens’ confidence in their governments’ ability to get taxpayers to pay their taxes and may deprive governments of revenues needed for sustainable development.
“Tax evasion is a serious issue”, said Simon York, Director of Fraud Investigation Service at HM Revenue and Customs.
“As well as the harm it causes to society we know that it is closely linked to money-laundering, organised crime, corruption and terrorist financing. This Fifth Forum is a central part of how we put in place the co-operation and international responses that are needed to tackle these threats,” York said.
“Financial crimes affect countries around the world” said Grace Perez-Navarro, Deputy Director of the OECD’s Centre for Tax Policy and Administration. “Criminals operate across international boundaries, constantly trying to find new ways to break the law, and hide their illicit profits. The most effective response is partnership –partnership between countries, partnership across different parts of government, and partnerships between policy-makers and operational leaders.”
Iheanyi Nwachukwu
