Friday, May 4, 2007

Countries need to exchange information to thwart tax evasion, Senate committee told

To fight offshore tax evasion, the U.S. needs to improve the exchange of information with other countries, several witnesses told the Senate Finance Committee at a hearing on May 3.

Senator Max Baucus (D-MT), the committee chairman, said the US can't track where taxes are being evaded because the government can't keep up with the speed of international trade, the International Tax Review reported.

"The heart of the problem is that the Treasury, the IRS, and American institutions know far less than they should," he said.

To read the statements of Baucus and Sen. Charles Grassley (R-IA) and the witnesses at the hearing, see the finance committee website.