Crypto Tax Cheats Targeted By New Global Tax Enforcement Alliance

News | July 3, 2018 By:

Tax enforcement authorities from five countries have established a joint operational alliance to combat transnational tax crime and money laundering.

Called Joint Chiefs of Global Tax Enforcement (J5), the new alliance includes the heads of tax crime and senior officials from the Australian Criminal Intelligence Commission (ACIC), the Australian Taxation Office (ATO), the Canada Revenue Agency (CRA), the Dutch Fiscal Information and Investigation Service (FIOD), The UK’s HM Revenue & Customs (HMRC), and the US Internal Revenue Service Criminal Investigation (IRS-CI).

The alliance will focus on tackling professional enablers that facilitate offshore tax crime, cybercrime and the threat of cryptocurrencies to tax administrations, as well as making best use of internationally available data and technology. At their first meeting last week, the J5 brought together leading experts in tax and other financial crimes from each of the five member countries, and developed tactical plans and identified opportunities. Successes, new approaches and findings from these joint efforts will be shared with the greater tax enforcement community.

Col Blanch, Intelligence Operations Executive Director of the Australian Criminal Intelligence Commission, said financial crime occurs on a global scale with proceeds of crime transferred between jurisdictions. This is why they are committed to working with their domestic and international partners to proactively target offshore service providers and cybercriminals who specialize in targeting the financial sector.

Johanne Charbonneau, Director General of Canada Revenue Agency, said the formation of the J5 demonstrates the serious commitment of governments around the globe in enhancing international cooperation in fighting serious international tax and financial crimes, money laundering, and cybercrime through the use of cryptocurrencies.

“The J5 complements the important international work of the OECD through operational collaboration,” said Charbonneau. “Our collective efforts and experience will be shared to jointly identify and address the increasingly sophisticated and global schemes and the professional enablers that facilitate such schemes.”

Don Fort, Chief of the IRS-CI, said that the alliance will aim to become an operational group that is forward-thinking and can pressurize the global criminal community in ways they could not achieve on their own.

“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,” Fort said. “The J5 aims to break down those walls and build upon individual best practices.”