October 26, 2016
In the latest news on international tax evasion, reports have emerged this month of Swiss bank accounts being set up by Scottish firms in order to assist international tax dodgers. These SLPs (Scottish Limited Partnerships) make use of an ancient loophole which means they don’t have to pay tax or file accounts.
In order to further hide this activity, many SLPs are using choice words to describe what they do, including “wealth protection services” and “tax optimisation”. There are, however, some companies that are more brash about their services.
Indeed, reports suggest that one such company based in Dundee boasts online that it can facilitate the opening of bank accounts in numerous international locations including Switzerland, Andorra and Latvia. It also references potential connections with the infamous tax havens of Panama and Liechtenstein.
Given the ongoing global clampdown on tax evaders, it’s perhaps no surprise to see more individuals utilising such loopholes as their options to hide tax payments become increasingly limited. However, this approach is something we certainly don’t condone for a variety of reasons. Perhaps the biggest of these (aside from the fact that tax evasion is unlawful and in our view also unethical) is that authorities are coming down hard on these wrong-doers.
The number of people and businesses facing penalties and even criminal charges for tax evasion is increasing rapidly and will only continue to rise. And as we have long said, there is nowhere for anyone to hide – authorities will eventually catch up with everyone.
It’s therefore vital that you ensure you remain complaint with local tax laws regardless of where in the world you operate. In order to ensure this and remove the headache of navigating complex tax legislation, partnering with an expert is quite simply a must.
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