This presentation talks about the issues as well as provides suggestions on how to eliminate tax havens

1. Taxation - Offshore Tax Shelters -
Why they are difficult to detect
By: Paul Young, CPA, CGA

2. Disclaimer
• This presentation discuss on Offshore Tax Shelters

3. Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg

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
• UN provides foreign Aid to various Countries
• More accountability in terms of how the money is spent
• Audits
• Oversight

9. Corporation
• 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.