The Tax Justice Network is an independent watchdog group committed to driving change in global finance and tax issues related to the proliferation of tax havens around the world. As part of its mandate to identify and highlight relevant issues, the organization develops, monitors, and releases a Financial Secrecy Index or FSI. The data from which the index is drawn is well-regarded and the results are considered non-partisan.
The FSI for 2018 illuminates shadowy tax havens that illicitly allow fraudsters to drain money away from budgets, accounts, and governments around the world. Some key points from the 2018 index include:
A dubious achievement in financial responsibility—number two on the FSI
Behind only Switzerland, the US ranks number two in the world as an abusive tax haven. The top ten, in order, include:
The rankings are created from factors that include laws, treaties, and regulations in play at each jurisdiction. Less regulation and transparency earns a higher secrecy score. In addition, those scores are weighted relative to the size and influence of a country on the global market.
In addition to a ranking, reports are created for each country to provide a glimpse of the practices in place anywhere in the world. Points of interest about the report on the US include:
As summed up in the report, the US has created vigorous means “to defend itself against foreign tax havens,” but has not effectively addressed its own role in offshore tax fraud and other global criminal tax matters. While number two is better than first in the world for offshore tax crime, second place is still pretty close.
Skilled criminal tax defense in Cleveland, Chicago, and internationally
Robert J. Fedor, Esq., LLC provides strategic legal representation if you or your company are facing questions about a tax audit, FATCA, or your FBAR filings. We provide knowledgeable, strategic legal counsel and representation. Contact us or call 800-579-0997 today.