HM REVENUE AND
CUSTOMS News Release (Ref:NAT 10/09) issued by COI News Distribution
Service. 26 January 2009
The influence of
the global economic downturn on the tax avoidance industry was one
of the key issues for leaders of the Joint International Tax
Shelter Information Centre (JITSIC) in Kyoto.
JITSIC leaders from Australia, Canada, China, Japan, United
Kingdom and the United States reviewed successes and decided on
JITSIC's future direction.
The JITSIC countries agreed to continue their joint efforts to
curb abusive tax avoidance transactions, arrangements, and schemes
and to broaden JITSIC's activities against cross-border
transactions involving tax compliance risk. Use of off-shore
arrangements to avoid tax will also come under close scrutiny.
There will also be a fresh focus on the ways in which some high
wealth income taxpayers artificially minimize their tax liabilities.
The Right Honourable Stephen Timms MP, Financial Secretary to the
Treasury said:
"The vast majority of taxpayers pay their fair share and do
not seek to avoid their financial responsibilities. The avoidance
industry seeks to profit from enriching those who are prepared to
seek an unfair advantage over those who play by the rules. This in
turn denies member countries vital financial resources. It is
these injustices that JITSIC tackles and I am delighted that in
doing so it goes from strength to strength."
Dave Hartnett, HMRC Permanent Secretary for Tax said:
"JITSIC's work has led to major improvements in
international tax compliance and much improved co-ordination of
the international drive to combat unfair tax avoidance. JITSIC is
adapting fast to global economic circumstances by concentrating on
the effects of the world economic down turn to ensure that member
states will not be unfairly denied vital tax revenues."
Notes for editors
1. The focus of member country activities will also include
collaboration on:
* Tax administration issues arising from the global economic
environment and financial crisis
* Tax administration approaches and activities to improve
transfer pricing compliance.
2. The JITSIC members agreed to expand participation by inviting
Korea as an observer in the Washington, DC office in early 2009.
3. JITSIC was established in 2004 by the tax administrations of
Australia, Canada, the United Kingdom and the United States, to
supplement the ongoing work of the Australian Taxation Office, the
Canada Revenue Agency, HM Revenue & Customs, and the Internal
Revenue Service in identifying and curbing tax avoidance and
shelters and those who promote them and invest in them.
4. The first office is located in Washington DC. The London
office was opened 10 September 2007.
5. All delegates exchange information on abusive tax schemes,
their promoters and investors, consistent with the provisions of
bilateral tax conventions.
Issued by HM Revenue & Customs Press Office
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