Moving income around the world has been used for decades. Government are continuing to look at ways to shut down tax shelters as part of managing their taxation programs. This presentation discusses the issues when dealing the tax shelters as well as enforcement undertaken by both Canada and United States.

1. TAXATION - OFFSHORE TAX
SHELTERS - WHY THEY ARE
DIFFICULT TO DETECT
BY: PAUL YOUNG, CPA, CGA

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. DISCLAIMER
• This presentation discuss on Offshore Tax Shelters

4. AGENDA
• What is Panana Leaks
• How do Tax Shelters typically work for individual and/or business
• UN
• OECD

5. WHAT IS PANAMA LEAKS
• The documents show the myriad ways in which the rich can exploit secretive offshore tax regimes.
Twelve national leaders are among 143 politicians, their families and close associates from around the
world known to have been using offshore tax havens.

6. HOW CAN IT WORK
Taxpayer Lawyer/Accountant/
Holding Company
Company is register
country to establish
the tax haven
Cash Flows to
Holding Company
Who can be involved:
• Banks as they have to make the
transfers to the holding companies
• Government officials as they have to
authorized the bank transfers
• Accountants/Lawyers as they will set
up trust fund with companies as part
of hiding assets.

7. ENFORCEMENT
• Tax Treaties
• Countries need to have tax treaties as part of disclosing of assets/bank accounts
• Cost of enforcement
• Audit enforcement
• Complexity of transactions are difficult to detect due to how money is moved between # companies
• Lack of resources, especially expertise when it comes to review bank files, complexity of the funds
• Disclosure of assets by banks

8. HOW DOES THE UN FIT INTO TAX HAVENS
• Pushing for tax reforms like BEPS - https://home.kpmg.com/xx/en/home/insights/2015/03/beps-in-
taxnewsflash.html
• UN provides foreign Aid to various Countries
• More accountability in terms of how the money is spent
• Audits
• Oversight

9. CORPORATION
• BEPS
• https://home.kpmg.com/xx/en/home/insights/2015/03/beps-in-taxnewsflash.html
• OECD
• Enforcing tougher transfer pricing rules
• The agreement between 31 nations, including France and the UK, is about sharing information rather than a new law or
tax
• The new rules mean that international companies will have to tell the country they operate in what they make in that
nation and how much tax they pay.

10. CANADA AND OFFSHORE
• http://www.cbc.ca/news/politics/canada-revenue-agency-tax-cheats-offshore-havens-amnesty-voluntary-disclosure-1.4173727

11. USA – IRS ENFORCEMENT
• https://www.irs.gov/uac/newsroom/irs-offshore-voluntary-disclosure-efforts-produce-6-5-billion-45-000-taxpayers-participate