The use of shell banks, along with limited tax law enforcement, has enabled tax evasion by wealthy individuals through offshore financial accounts and assets, according to a recent Senate Finance Committee report. Committee Chair Ron Wyden (D-OR) noted that the Foreign Account Tax Compliance Act (FATCA) is aimed at cracking down on tax evasion by U.S. citizens with offshore assets. However, “loopholes have significantly hindered the law’s effectiveness,” the report said. “There are hundreds of thousands of shell companies in offshore tax havens that have been turned into IRS-approved banks with virtually no scrutiny by the IRS,” Wyden explained. Read the report: https://bit.ly/3QmDkXM
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