Fund flows to tax havens decrease
The efforts of the Australian Taxation Office (ATO) together with factors such as Project Wickenby and the introduction of AUSTRAC have seen significant reductions in the amount of funds flowing to tax havens and secret bank accounts, according to the Commissioner of Taxation Michael D'Ascenzo.
D'Ascenzo has told the Tax Institute national convention that there has been a "remarkable reduction" in the flow of money to Vanuatu, Liechtenstein and Switzerland, where Wickenby has had a significant focus.
"Since 2007-08, we have seen reduction in funds flow of 22 per cent to Switzerland, 50 per cent to Vanuatu, and a remarkable 80 per cent reduction to Liechtenstein," he said.
"On the other side of the ledger we have seen an increase in the repatriation of funds from these jurisdictions to Australia," the Tax Commissioner said.
He said AUSTRAC had demonstrated its ability to track funds to secrecy jurisdictions, and to identify funds which form the basis of tax evasion and avoidance, and those suspected of being related to criminal activities.
"However, the potency lies not in the work of one organisation, but in the holistic approach taken by a number of Commonwealth agencies, which is increasingly becoming a standard mode of operation for other taskforces," D'Ascenzo said.
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