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The schedule is set: tax havens will dry up from 2017

Summary

It is becoming increasingly difficult for tax evaders to find a tax haven for their money in the world. As of 2017, more than 44 countries and territories want to start automatically exchanging information about financial accounts. The schedule for […]

The schedule is set: tax havens will dry up from 2017.  The number of tax havens will continue to shrink in the next few years (source: imago / McPhoto)

It is becoming increasingly difficult for tax evaders to find a tax haven for their money in the world. As of 2017, more than 44 countries and territories want to start automatically exchanging information about financial accounts. The schedule for this has now been decided, as the Federal Ministry of Finance announced in Berlin in the evening.

In addition to Germany, France, Great Britain, Italy and Spain (G5), Liechtenstein, Luxembourg, Bermuda and the Cayman Islands, among others, have also committed to the so-called automatic exchange of information in tax matters and the schedule.

The Federal Ministry of Finance spoke of a “milestone”. The new standard should significantly improve the possibilities for combating and preventing tax evasion. It went on to say: “We appeal to all financial centers to join this timetable in accordance with their responsibilities within the global financial system.”

Time is running out

Tax evaders cannot wait until 2017, however, as certain accounts that already existed in 2015 will then also be included in the exchange. The time left to cover up traces or to transfer the money to supposedly other safe places has become scarce. To be on the safe side, many black money accounts would have to be closed this year.

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