More Signs Of An International Tax Evasion Clampdown

In 1998, the OECD issued a document titled Harmful Tax Competition: An Emerging Global Issue.  This was the first shot in a war between developed countries and offshore tax havens.  Over the ensuing 15 years offshore havens have become far more cooperative with higher tax countries -- at least in the compliance area; many have signed mutual assistance treaties which allow the exchange of information.  And the US has aggressively clamped down on certain evasion structures, specifically targeting UBS and Switzerland.  

The US is not alone in its efforts.  Over the last 6-12 months, we've seen the OECD and EU adopt a more aggressive posture towards advanced tax planning strategies.  The latest news is reported by the Financial Times:

Brussels is probing Ireland, Luxembourg and the Netherlands over their tax deals with multinationals paving the way potentially for a formal investigation into illegal sweeteners.

Europe’s top competition authority has asked the governments to explain their system of tax rulings and give details of assurances given to several specific companies – including Apple and Starbucks – according to people who have seen the request.