International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Countering Offshore Tax Evasion: A Comparative Look at Initiatives by the United States, Canada, the United Kingdom and Japan
Maxine Morgan-Thomas

This paper provides a comparative review and analysis of anti-avoidance initiatives the United States, Canada, the United Kingdom and Japan have implemented to counter offshore tax avoidance and evasion schemes employed by multinational entities and individual taxpayers. Increased globalization and the ease of conducting international business and financial transactions have created opportunities for a plethora of tax loopholes that incentivize cross-border tax-evasive strategies that have become commonplace in the international landscape. Governments worldwide have turned their attentions to the idea of systemic tax reforms or, minimally, implementation of targeted anti-avoidance measures anticipated to curtail cross-border tax avoidance evident among the relevant groups of taxpayers. A main objective is to control expansion of their tax-gaps. Beyond identifying adopted anti-avoidance measures, the purpose of this comparative review and analysis is to survey the effectiveness of these initiatives and to offer observations as to limitations and recommendations. As the U.S. looks toward major international tax reform to reduce revenue loss attributable to foreign tax avoidance and evasion, it can benefit from observing the outcomes of tax policy and other tax reform measures Canada, the United Kingdom and Japan have implemented.

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