Tax evasion through offshore accounts and shell companies remains a serious problem. The European Commission unveiled their plans to Clamp down on these practices moving forward. Clamping down on individuals and companies trying to avoid paying taxes is the primary objective right now.Moreover, the commission will also go after lawyers and tax advisers helping clients to sluice money to tax havens.
If there is one thing the Panama Papers have shown, it is how far too many taxes remain unpaid. Tax havens have been around for as long as most people can remember, as have offshore bank accounts. Regions such as the Cayman Islands and even Switzerland have been notorious for their banking system and respecting customer privacy.
European Commission Clamps Down On Tax Evasion
All of this will be coming to change very soon, though. The European Commission is trying to close the loopholes which allow tax evaders to hide funds. National tax authorities will exchange information about companies and individuals behind a trust. All of this data is being collected for several years now, as part of EU AML rules.