10 Core Principles of Fighting Tax Crime

Fighting tax crimes is a global issue and a complicated one. The more sophisticated and modern society becomes, the more complicated it is to navigate identifying and pursuing tax crimes. A tax law attorney can help you with your tax situation. In November of 2017, the OECD launched the Global Principles for Fighting Tax Crimes. Here is what they came up with.

1. Ensure Tax Offenses are Criminalized

As cultures and countries widely vary, it is understood that legal systems will be different. But despite these differences, each jurisdiction needs to have an effective legal infrastructure that includes having laws that clearly define criminal tax offenses; a penalty for proven offenses that range according to the seriousness of the offense; and punishments are applied in practice.

2. Devise an Effective Strategy for Addressing Tax Crimes

Every jurisdiction should have a strategic approach to handling tax crimes based on its legal system. Governments need to have a plan to encourage citizens to comply and methods of handling both unintentional noncompliance and purposeful evasion.

3. Adequate Investigative Powers

Those entities responsible for investigating and prosecuting tax crimes must have investigative powers and resources available to them. These powers should allow for the collection of and access to information to pursue crimes as well as oversight of the investigative powers.

4. Effective Powers to Freeze, Seize and Confiscate Assets

Law enforcement needs the ability to freeze and confiscate assets during both foreign and domestic investigations and judgments to safeguard evidence and prevent the enjoyment of criminal gain.

5. Put in Place and Organizational Structure with Defined responsibilities

To reduce and prevent gaps in the legal system, having well-defined roles and duties of those investigating and prosecuting tax crimes is imperative. A detailed organizational structure allows for transparency and accountability.

6. Provide Adequate Resources for Tax Crime Investigation

Because jurisdictional economies will vary, resources need to be allocated in accordance. Financial, human, and infrastructure resources are necessary, as well as training and technology are also important to fighting tax crimes.

7. Make Tax Crimes a Predicate Offense for Money Laundering

The OECD recommends the designation of tax crimes as a foundational offense for money laundering. So those accused of money laundering, will likely also be accused of tax crimes as the two are related.

8. Have an Effective Framework for Domestic Interagency Cooperation

Since there are different entities working together in the pursuit of tax crimes, there need to be ways to maintain order and accountability between these agencies and to the public. Some of these corporations include information sharing, joint investigation teams, and the co-location of personnel.

9. Ensure International Cooperation Mechanisms are Available

International cooperation is very important and useful because law enforcement is confined within its jurisdiction. Legal agreements should be in place for international agencies to work together to define the terms, roles, and duties of each entity.

10. Protect Suspects’ Rights

Jurisdictions need to protect the rights of taxpayers. Those accused of tax crimes also have rights that need to be expressed and preserved.

These core principles have been laid out in detail to inhibit and discourage tax crimes around the world. No matter the location, these principles can help jurisdictions create solid plans for upholding and enforcing taxation.