Thursday, May 24, 2007

Japan joins other countries to track tax avoidance and abusive tax transactions

Japan has accepted an invitation to join the Joint International Tax Shelter Information Centre (JITSIC), where members exchange information to track tax avoidance and abusive cross-border transactions.

In addition JITSIC has decided to open a second office in London in fall 2007.

JITSIC, formed in 2004 by Australia, Canada, the United Kingdom and the United States, plans to broaden its focus. A press release issued by the IRS said that the group will share "best practices on risk assessment and other key areas of interest," and increase the "transparency of cross-border transactions in order to create a level playing field for taxpayers who are voluntarily compliant."