The world is getting smaller, the noose is getting tighter
On May 9th the IRS, the Australian Tax Office and the UK’s HM revenue & Customs announced a plan to share information with tax administrations of other jurisdictions. This information, which has been gathered and analyzed by the three countries includes data on entities and trusts organized in a number of jurisdictions including Singapore, the British Virgin Islands, Cayman Islands and the Cook Islands.
While the IRS acknowledges that there is nothing illegal in the use of such entities, the Service points out that such structures are often used to avoid or evade tax. The announcement does not acknowledge that avoidance of tax is legal.
The information to be shared includes not only the individual owners of the entities but the advisors that assisted in establishing the structures as well.