After the Panama Papers scandal, trust companies are scrutinizing their client lists in order to identify any tax cheats who could drag them into an evasion lawsuit. Companies were setting up offshore trusts to reduce exposure to new proposed regulations targeting tax evasion enablers. The government has authorized new measures to reduce this avoidance by fining advisors and accountants facilitating the evasion. Advisors will be required to send letters to clients who have been provided offshore services within the past three years.
See Vanessa Houlder, Trusts Comb Client Lists for Tax Cheats, Financial Times, August 18, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
