The Big Bang: Tax Evasion After Automatic Exchange of Information Under FATCA and CRS

Curbing Tax Evasion through Taxpayer Identification Number (TIN) in Niger State, Nigeria

“…Ahrens and Bothner ( 2019) conducted a difference-in-difference analysis of data regarding transactions between nations to determine the effectiveness of FACTA and the Common Reporting Standard (CRS) in curbing international tax evasion. The CRS was developed by the OECD in 2014 to facilitation automatic exchange of tax information among countries (Ahrens & Bothner, 2019). The study found that both policies were effective in curbing international tax evasion as evidenced by the fact that the value of household assets in tax havens were estimated to be 67% lower than they would have been if these two tax information-sharing polices had not been in place.…”

“…The TIN strategy was adopted over other strategies because it was determined to have the greatest chance of success. This was because it made access to basic services by businesses completely dependent on the possession of TIN which allowed the government to know whether or not a business This study adopts a qualitative approach by interviewing tax officials to understand their perspective regarding the efficacy of TIN in combating tax evasion in the state; this approach makes this study different from typical tax evasion studies that rely on secondary data to determine the efficacy of tax evasion policies like TIN (e.g., Ahrens & Bothner, 2019;Bethencourt & Kunze, 2019;Casais et al, 2019;Agarwal et al, 2020;Bernasconi et al, 2020 .…”

Is neoliberalism still spreading? The impact of international cooperation on capital taxation

“…In contrast, recent studies show that comprehensive AEI -either embedded in the Obama administration's Foreign Account Tax Compliance Act (FATCA) or the OECD's common reporting standard (CRS) -curbs tax evasion by households with foreign accounts. Since their adoption, formerly secretive tax havens have lost a substantial share of their foreign deposit base (Ahrens & Bothner, 2019;Hakelberg & Schaub, 2018), and saw important declines in the number of registered shell companies (Omartian, 2017).…”

“…3 A report on British offshore centers for the UK's chancellor of the exchequer concluded in October 2009 that 'the trend for greater transparency is likely to result in pressure to move to a system of automatic exchange of information' (Foot, 2009, p. 10). Like tax evaders, who react to transparency measures upon their announcement rather than their entering into force (Ahrens & Bothner, 2019;Huizinga & Nicodème, 2004), finance ministers anticipated that the G20's call for financial transparency would culminate in the adoption of multilateral AEI.…”

“…In parallel, Austria and Luxembourg's signature of IGAs with the United States enabled the EU to break their opposition to an extension of the STD's AEI mechanism to all types of capital income and all EU member states (Hakelberg, 2015). The announcement of AEI by key actors substantially reduced the value of foreign deposits in tax havens relative to non-havens (Ahrens & Bothner, 2019;Hakelberg & Schaub, 2018). Large residence countries have since earned billions in back taxes and fines (IRS, 2016), and despite the US government's refusal to fully reciprocate the AEI, OECD countries had on average covered 83% of their investment networks with AEI relationships in 2017, reflecting an unprecedented level of financial transparency (cf.…”