The tax authorities of Canada, Australia, the United Kingom and the United States. have established a joint task force to increase collaboration and coordinate information in the fight against “abusive tax transactions”.
The countries signed a Memorandum of Understanding to establish a Joint International Tax Shelter Information Centre on April 23, Stan Keyes, Minister of National Revenue announced today. The joint task force is intended to help local tax administrations in dealing with abusive tax transactions.
Setting up a joint task force will enable the four countries to:
- share expertise, best practices and experiences in the field of tax administration to identify and better understand abusive tax transactions and emerging schemes, as well as those who promote them;
- exchange information about specific abusive transactions and their promoters and investors within the framework of each countries’ existing bilateral tax treaties; and
- carry out their individual abusive tax transaction enforcement activities more effectively and efficiently.
Officials of the four tax administrations will work together in Washington, D.C., during the initial phase of the task force’s operations.
An initial focus of the work will include the ways in which financial products are used in abusive tax schemes by corporations and individuals to reduce their tax liabilities, and the identification of promoters developing and marketing those products. The commissioners will review the operation of the task force after 12 months.