Global Tax Enforcement Authorities Launches Joint Initiative to Combat Crypto Tax Fraud
The U.S. Internal Revenue Service (IRS) is collaborating with its global counterparts to launch a joint initiative for combating transnational tax crime and money laundering.
The Joint Chiefs of Global Tax Enforcement (J5) has brought together the leaders of tax enforcement authorities from Australia, Canada, the Netherlands, the U.K. and the U.S.
The participating authorities include the Australian Criminal Intelligence Commission (ACIC) and Australian Taxation Office (ATO), the Canada Revenue Agency (CRA), the Fiscale Inlichtingen- en Opsporingsdienst (FIOD), HM Revenue & Customs (HMRC), and Internal Revenue Service Criminal Investigation (IRS-CI).
According to a statement on the IRS website, the entities will work together to gather information, share intelligence, conduct operations and try to enhance the capacity of tax crime enforcement officials.
“We will work together to investigate those who enable transnational tax crime and money laundering and those who benefit from it. We will also collaborate internationally to reduce the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology,” the statement read.
The initiative has been launched in response to the OECD’s call to action for countries to ramp up efforts to tackle the enablers of tax crime. The J5 works closely with the OECD and other countries and organizations where appropriate.
“We cannot continue to operate in the same ways we have in the past, siloing our information from the rest of the world while organized criminals and tax cheats manipulate the system and exploit vulnerabilities for their personal gain. The J5 aims to break down those walls, build upon individual best practices, and become an operational group that is forward-thinking and can pressurize the global criminal community in ways we could not achieve on our own,” Don Fort, Chief of IRS-CI, said in a statement.
Last week, the group held its first meeting in which it developed plans and identified opportunities to clamp down on cyber-criminals and enablers of transnational tax crimes. The entity will release further updates on the initiative in late 2018.