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Data Leak Spurs Huge Offshore Tax Evasion Investigation
New submitter lxrocks writes "Tax authorities in the U.S., Britain, and Australia have announced they are working with a gigantic cache of leaked data that may be the beginnings of one of the largest tax investigations in history. The secret records are believed to include those obtained by the International Consortium of Investigative Journalists that lay bare the individuals behind covert companies and private trusts in the British Virgin Islands, the Cook Islands, Singapore and other offshore hideaways. The IRS said, 'There is nothing illegal about holding assets through offshore entities; however, such offshore arrangements are often used to avoid or evade tax liabilities on income represented by the principal or on the income generated by the underlying assets. In addition, advisors may be subject to civil penalties or criminal prosecution for promoting such arrangements as a means to avoid or evade tax liability or circumvent information reporting requirements.'"
This has been public knowledge since the end of March, yet there has been almost zero coverage of it in the mainstream U.S. media. Here's a bit of info in map form from the CBC on April 3, 2013:
http://www.cbc.ca/news/interactives/icij-map/
and an interactive feature, also from the CBC:
http://www.cbc.ca/news/interactives/offshore-tax-havens/
I deny that I have not avoided attaining the opposite of that which I do not want.
There, corrected it.
My bet is that the actual investigation targets "who got this data" rather than "who does this data show cheated on their taxes". Mark my words, it'll be along the lines of "we can't use this data in court, so we HAVE to find out the source, so we can have them testify", only when the source comes forward, they'll find themselves jailed and the tax evaders will either never get prosecuted or make a sweethart deal.
Just because you're paranoid doesn't mean they aren't out to get you
100,000 people world wide..... that's 500BUCKS stolen for every man women and child on earth....are you feeling angry yet?
This is one bank
30% of any amount of money is still 30%.
That's not very relevant. 30% of $100 is $30. 30% of $1 million is $300,000. For who is it worth more to reduce their taxes? The person looking at a $300k tax bill.
And suppose you could, for $5000, reduce your tax bill from 30% to 29%? For the first taxpayer, that's $5000 spent to save $1. For the second, it's $5000 spent to save $10,000.
The brunt of the tax burden is borne by the middle class.
The lower classes just don't have much money to tax. The rich upper classes use their wealth to manipulate the law such that they do not have to pay taxes.
Of course, the middle class is also shrinking, as wealth only flows upwards and the upper class makes most of their money by charging the middle class high prices while paying them low salaries. So, as the middle class shrinks, the tax revenue will shrink as well.
The most natural response will be...more taxes! For the middle class! And the problem will perpetuate itself until the middle class dries up completely and there will be no means of upward social mobility at all.