A Brief Note On Tax Evasion And Tax

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Reporting: Tax Evasion

Tax havens are sometimes called tax shelters, secrecy jurisdictions, international financial centers, or simply offshores. They are the locations of a growing shadow economy of unregulated global capital (Global Financial Integrity, 2015). As defined by the Canada Revenue Agency (CRA), tax havens are jurisdictions with no or very low rates of tax, strict banking secret provisions, lack of transparency and efficient exchange of information with other countries (Global Financial Integrity, 2015). Tax havens mainly help their users to pass any financial regulations illegal banking transactions and to launder money earned illegally through drug trafficking or organized crimes and hide them from criminal laws and
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The British Virgin Islands has 400000 corporations and requires no financial or personal records to be kept so this makes it very easy to make larger transfers of money into Tax Havens undetected (Tax Fairness, 2015). At the same time, laundering criminal proceeds can be easily done through tax haven by finding a bank in a country that accepts your deposit without asking questions and sends to whoever you wish to receive it. So is evading taxes-disguise income or assets through that country and fail to report to your home country’s authority (Global Financial Integrity, 2015). For example, 53.3 billion Canadian dollars have been sent to Barbados in 2011; 80 billions dollars estimated revenue lost to tax avoidance in Canada and 24% of Canadian’s foreign investments directed into Tax Havens (Tax Fairness, 2015). This shows how tax evasion is becoming popular as people try to find loopholes in the system and hide their assets with the help of lawyers and banks.

One of the largest international bank invasions is the Swiss HSBC case. This case is focused upon majority of the Swiss account holders with HSBC. The investigation was sparked by an ex-employee’s whistle blowing. Herve Falciani, a former employee at HSBC 's Geneva private bank leaked a list of thousands of suspected
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