As Government Debt Rises, Tax Evaders Face More Scrutiny

Governments all over the globe are facing rising debts and are trying to find ways to alleviate their mounting budget shortcomings. America and European countries are looking for ways to boost their revenue without adversely affecting their weak economies.

Cracking down on tax havens and tax evasion are one area where the G20 countries believe they can bridge the gap in revenue shortages. Addressing tax compliance and evasion is one of the issues on the agenda of global leaders and have create the impetus for these countries to lead a coordinated effort to find wealth hidden in secret or offshore accounts.

Offshore assets held worldwide have almost tripled in the past six years and is estimated to be around $11.5 trillion, according to the New York Times. When the IRS discovers someone is hiding funds offshore, they aggressively pursue them, requiring they hire tax attorneys to defend them in criminal court.

Some of the efforts to find tax evaders would include investing in technology, hiring tax officers and working with the Organization of Economic Cooperation and Development. The New York Times reported that the O.E.C. D. helped collect $19 billion in lost tax revenue for over 20 countries.

Some countries that help people hide their funds in offshore accounts are reluctant to lift the veil of banking secrecy.

As governments beef up their efforts to find and prosecute tax evaders, the demand for tax lawyers will continue to rise. Tax attorneys can help people with criminal charges along with non-criminal tax issues such as business structuring.