Yearly Archives: 2018

The tax authorities of the UK, US, Australia, Canada and Netherlands have set up a joint committee to improve international enforcement against tax crime and money laundering. The first meeting of the so-called J5 Group (Joint Chiefs of Global Tax Enforcement) was held during July 2018 where plans where developed to detect cyber criminals and enablers of offshore tax crime. The threat of virtual currencies to tax administrations is a particular priority. 
The Joint Chiefs of Global Tax Enforcement (known as the J5) are committed to combatting transnational tax crime through increased enforcement collaboration. The J% will work together to gather information, share intelligence, conduct operations and build the capacity of tax crime enforcement officials.

The J5 is comprised of:

1. The Australian Criminal Intelligence Commission (ACIC) and Australian Taxation Office (ATO),
2. The Canada Revenue Agency (CRA),
3. The Fiscale Inlichtingen- en Opsporingsdienst (FIOD),
4. HM Revenue & Customs (HMRC), and
5. Internal Revenue Service Criminal Investigation (IRS-CI).

The J5 is convinced that offshore structures and financial instruments, where used to commit tax crime and money laundering, are detrimental to the economic, fiscal, and social interests of our countries. We will work together to investigate those who enable transnational  tax crime and money laundering and those who benefit from it. We will also collaborate internationally to reduce the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology.

What the J5 Does

To actively bring about change, the J5 will:

• Develop shared strategies to gather information and intelligence that will strengthen operational cooperation in matters of mutual interest, and target those who seek to commit transnational tax crime,  cybercrime and launder the proceeds of crime
   
• Drive strategies and procedures to conduct joint investigations and disrupt the activity of those who commit transnational tax crime, cybercrime, and also those who enable and assist money laundering
   
• Collaborate on effective communications that reinforce that J5 is working together  to tackle transnational tax crime, cybercrime and money laundering. 

Results The outcome of this active collaboration will see the J5: Enhance existing investigation and intelligence programs Identify significant targets for new investigations Improve the tactical intelligence threat picture now and into the future Lead the wider community in developing its strategic understanding of the methods, weaknesses and risks from offshore tax crime and cybercrime Raise international awareness that the J5 is working together to reduce transnational tax crime, cybercrime and money laundering, and create uncertainty for those who seek to commit such offenses. The J5 was formed in response to the OECD’s call to action for countries to do more to tackle the enablers of tax crime. The J5 works collaboratively with the OECD and other countries and organizations where appropriate.    Have Undeclared Income from an Offshore Account?   Want to Know if the OVDP Program is Right for You? Program Ends September 28th!     Contact the Tax Lawyers at  Marini& Associates, P.A.      for a FREE Tax Consultation Contact us at:  www.TaxAid.com or www.OVDPLaw.com or Toll Free at 888-8TaxAid (888) 882-9243   

A district court has approved IRS's levy on taxpayers' principal residence, noting that:

1) IRS established that there were no reasonable alternatives for collection;
2) IRS's determination that the taxpayers were ineligible for an offer in compromise was correct; and 3) taxpayers' pending installment agreements didn't prohibit the levy.

(Gower, (DC FL 7/10/2018) 122 AFTR 2d ¶ 2018-5033).

The US Supreme Court has ruled in South Dakota v Wayfair, Inc. that retailers can choose to charge tax on online purchases, regardless of whether the consumers have a physical presence in the same state, overturning 26 years of precedent barring states from taxing out-of-state sellers. This is sure to be regarded as a landmark decision for state and local taxation and seen as a heavy blow to online retailers throughout the United States, as well as foreign based internet retailers.

The decision was a very close 5-4 decision which overturned a 1992 Supreme Court ruling in Quill, that prevented states from imposing sales taxes on catalog and mail-order companies that did not have a physical presence in the state (physical presence included an office, warehouse, employees et…). That ruling came just prior to the internet boom, and was the basis for online retailers avoiding the collection of sales taxes on purchases made on their websites.

 
Although the case addresses the South Dakota law requiring online retailer Wayfair to collect sales tax regardless of whether it has a physical presence there, the Supreme Court ruling has significant implications nationwide.

Currently, over thirty state have some sort of rule that taxes internet sellers without physical presence. Some of those statutes were to take affect when the Supreme Court abrogated the requirement that a vendor have physical presence in order to be subject to sales taxation. That day has come and companies must now scramble to come into compliance with state sales taxation.

A report from the Government Accountability Office in December 2017 found that states are losing up to $13 billion because they could not compel remote sellers, especially internet sellers, to collect and remit tax.

Have a IRS Tax Problem? 

 

Contact the Tax Lawyers at 

Marini& Associates, P.A. 

 

 

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