IMF experts proposed to expand the powers of tax authorities in the world

Budget revenues in different countries can be significantly increased if the tax authorities are allowed to use the methods of agencies that fight money laundering. This conclusion was reached by IMF experts in a report on measures to improve tax compliance and promote domestic revenue mobilization. The authors note that in the context of global instability, this will allow many countries to strengthen their financial systems. At the same time, it will be possible to do without additional business taxation, various forms of windfall tax and “solidarity contributions” from the richest citizens and companies.

Money laundering is often very difficult to distinguish from tax crimes, experts write: this follows from numerous recent data breaches (including Swiss Leaks, Panama Papers, Paradise Papers, FinCEN Files and Pandora Papers). In both cases, the methods used by the criminals often involve similar, even identical, techniques to hide income, the IMF adds. Laundering is facilitated by professional consultants who provide “comprehensive” legal, accounting and tax services, the report says.