Use of tax havens heightens scrutiny

Posted on / UK - Use of tax havens heightens scrutiny.

Companies doing deals in tax havens are facing tougher scrutiny from authorities, according to a survey by Ernst & Young, the professional advisory firm.

Deals involving low-tax jurisdictions were flagged for extra attention by about half of the 49 tax authorities across the world that participated in the survey. "Transactions with 'tax haven' jurisdictions . . . are increasingly likely to be scrutinised and formal 'watch lists' are becoming more common," it said.

Rightly so.

Of course, country-by-country reporting would help every tax jurisdiction in the world in undertaking these risk assessments.