Abusive Tax Avoidance and Tax Professionals’ Responsibilities

Abstract

Abstract This chapter highlights the ways in which various professionals play an integral role in facilitating corruption. A central case study helps us appreciate how this happens. Illicit flows are a massive driver of corruption around the world, helping those who make use of offshore options to evade the rule of law in the jurisdiction where they reside. Focusing on activities and agents that enable illicit flows is particularly worthwhile, as we can then appreciate the key enablers whose activities currently contribute greatly to corruption and where reforms are urgently needed. Accountants, lawyers, bankers, and other financial professionals have important responsibilities to assist with reforms, given the ways in which they have contributed to, benefit from, and have capacity to fix, corruption. Considering their professional responsibilities adds weight to the argument. This case study serves as a good illustration of key principles that can be applied to fair assignments of responsibilities in this and other cases. There are further important reasons to focus on tackling corruption in this area. The scale of corruption is huge. Stemming and recouping losses here would also release resources that can assist in addressing global justice goals, such as fulfilling human rights and addressing global poverty effectively. While the chapter focuses on the role of tax professionals as key enablers, it also shows how similar arguments apply to other key enablers, such as realtors and those who trade in high value assets.