Tax Haven Abuses: The Enablers, the Tools and Secrecy

Publication

Tax Haven Abuses: The Enablers, the Tools and Secrecy

Abstract

The Permanent Subcommittee on Investigations of the Senate Committee of Homeland Security and Governmental Affairs released a report regarding the use of offshore tax havens and secrecy jurisdictions that lead to tax evasion and offshore tax schemes. The report explores how how offshore and U.S. financial professionals are helping U.S. citizens conceal and secretly utilize offshore assets, while undermining, circumventing, or violating U.S. tax, securities, and anti-money laundering laws. The report utilized six case studies to determine its findings: EDG, Turpen-Holliday, Greaves-Neal, Anderson, Point, and Wyly. The case studies focused on internet based offshore promoters, creation of offshore how-to-manuals, diversion of U.S. business income offshore, the hiding of offshore ownership, offshore securities portfolios, and offshore trusts and corporations. Based on the related findings, the report provided recommendations including updates to required reporting and disclosures, offshore affiliation, anti-money laundering programs, and sanctions.