The global economy is constantly faced with the threat of tax fraud and tax evasion. These practices can destroy the financial stability of states, reduce the quality of services provided and increase the burden on conscientious taxpayers. Tax authorities around the world are implementing different strategies and practices to detect and prevent fraud, but with globalization and the digitalization of the economy, tackling such threats requires a comprehensive approach. In this article, we will look at best practices and strategies used by international tax authorities to combat fraud and tax evasion.

1. Global cooperation: the key to combating international tax fraud

One of the most important components of the fight against tax fraud is international cooperation between the tax authorities of different countries. Given that fraud and tax evasion often have a transnational nature, effective combating is impossible without the exchange of information and joint efforts.

One striking example of such cooperation is the Organization for Economic Co-operation and Development (OECD). This international organization has developed a tax information exchange mechanism called the Common Reporting Standard (CRS), which allows countries to exchange data on the financial assets and accounts of individuals and legal entities. With the help of CRS, tax authorities can detect assets and income located in other countries that are hidden from tax authorities.

Another example is the work of the international network of tax authorities - the Forum on Tax Administration (FTA). This network brings together the tax services of the leading countries of the world and serves as a platform for the exchange of experience and best practices in the fight against tax fraud.

2. Use of digital technologies and big data analysis

Modern technologies play a key role in the fight against tax violations. One of the powerful tools for analyzing tax data is the use of Big Data and machine learning. These technologies enable tax authorities to efficiently analyze vast amounts of financial transaction information and identify anomalies that may indicate tax fraud.

For example, the US Internal Revenue Service (IRS) uses advanced analytical tools to detect suspicious tax evasion schemes. The use of machine learning algorithms helps to identify atypical financial movements, which facilitates the audit process.

In addition, digitalization of tax processes also helps to minimize errors and reduce opportunities for corruption. In some countries, tax authorities have begun to implement electronic return systems that allow taxpayers to file their returns and taxes online. This not only reduces administrative costs, but also makes the system more transparent.

3. Countering evasion schemes through the creation of transparent tax jurisdictions

Many tax evasion schemes involve the use of offshore zones and tax havens. To combat such practices, international tax authorities are taking steps to create more transparent tax jurisdictions and close loopholes in international tax law.

In this context, the BEPS (Base Erosion and Profit Shifting) initiative, which was developed by the OECD and aims to prevent the shifting of profits between low-tax jurisdictions, plays an important role, allowing companies to minimize their tax liabilities. BEPS created a set of measures aimed at combating aggressive tax planning, such as tax evasion through the rewriting of transactions between subsidiaries or the use of artificial structures.

In addition, tax authorities are intensifying their efforts to curb the use of offshore tax havens for tax evasion. To achieve this, more stringent requirements are being introduced for the disclosure of information about the beneficiaries of companies, as well as the real owners of assets.

4. Educational and explanatory events for taxpayers

Taxes are not only an obligation, but also a responsibility. Taxpayer education and outreach play an important role in preventing tax fraud. Many tax authorities are actively involved in educating their citizens about the legal consequences of tax evasion and the importance of tax compliance.

Some countries organize information campaigns aimed at raising citizens' awareness of tax violations. For example, the UK Tax Service (HMRC) runs a number of campaigns aimed at informing citizens about the consequences of tax fraud and the possibilities of legalizing hidden income.

On the other hand, many tax services offer assistance to taxpayers in the form of consultations and voluntary tax payment programs, which can reduce the number of violations and ease the tax burden on conscientious citizens.

5. Attracting legal liability

To effectively combat tax offenses, it is necessary to strictly suppress violations, including bringing to legal responsibility those who try to circumvent tax obligations. In some countries, such as the United States, individuals found to be tax evaders may face not only heavy fines, but also criminal prosecution. For more serious offenses, such as money laundering schemes, tax crimes can result in long prison sentences.

Thus, harsh penalties and high fines become an important incentive to prevent tax violations.

Conclusion

The fight against tax fraud requires a comprehensive approach and active cooperation at the international level. Modern strategies include using digital technologies, sharing information, creating transparent tax jurisdictions, and working with taxpayers through education and outreach programs. It is important to understand that only the combined efforts of tax authorities around the world, as well as support for law and order and the involvement of citizens in complying with tax obligations, can significantly reduce the level of tax evasion and tax crimes in the future.