Let's Hope the New OECD Guidelines on Money Laundering Will Not Create More Unnecessary Tax Auditing

13 Pages Posted: 11 Oct 2009 Last revised: 20 Jun 2011

Date Written: October 11, 2009

Abstract

The Organization for Economic Cooperation and Development (OECD) has just released guidelines to tax administrators and other authorities on what to look out for in uncovering money laundering transactions. Although the guidelines are useful, many authorities will misapply the recommendations in arriving at conclusions that are not supported by fact, simply because a set of facts appear suspicious. Tact and care should be exercised and it should be remembered that, in adversarial systems of law, an accused is only guilty when proven with fact to be guilty, and not by conjecture.

This paper sets out the process which taxpayers should follow when facing a tax audit, especially where the audit is triggered by the tax authority's suspicion emanating from the broad parameters set out in the OECD guidelines.

Keywords: OECD, money laundering, tax audit, tax evasion, offshore ceneters, offshore trusts, discretionary trusts, tax

JEL Classification: K14, K33, K34

Suggested Citation

Erasmus, Dr Daniel N., Let's Hope the New OECD Guidelines on Money Laundering Will Not Create More Unnecessary Tax Auditing (October 11, 2009). Thomas Jefferson School of Law Research Paper No. 1486429. Available at SSRN: https://ssrn.com/abstract=1486429 or http://dx.doi.org/10.2139/ssrn.1486429

Dr Daniel N. Erasmus (Contact Author)

Thomas Jefferson School of Law ( email )

701 B Street
Suite 110
San Diego, CA 92101
United States
561-568-7115 (Phone)

HOME PAGE: http://www.taxriskmanagement.com

Register to save articles to
your library

Register

Paper statistics

Downloads
193
rank
151,451
Abstract Views
874
PlumX Metrics