Friday, August 3, 2012

European Commission to beef up regulation on tax evasion

The European Taxation and Customs Union is expanding efforts to crack down on tax evasion and fraud. The plan includes measures to assess the efficacy of regulatory bodies already in place, increase communication within the monitory network, Eurofisc, and implement standardized minimum penalties for tax related infractions, according to a recent memo released by the Commission.

The EU Taxation and Customs Union memo also noted that efforts should encourage tax compliance, though offered no specific strategy to do so.
EU member countries would benefit from adopting whistleblower programs that reward and protect whistleblowers, similar to those in the U.S.  The U.S. has four major whistleblower programs: one handled primarily by the Justice Department, and more recent ones with the Internal Revenue Service, the Securities and Exchange Commission and the Commodity Futures Trading Commission. These programs have been critical tools to fight tax fraud in the United States.