The Panama Papers and, more recently, the Paradise Papers have been cause for a few worried brows among people with offshore investments. Individuals who have used offshore jurisdictions such as Jersey, Guernsey and Mauritius to evade tax have been exposed, often revealing complicated webs of offshore companies.
A study by the Tax Justice Network in 2012 showed that there was as much as US$32 trillion in hidden assets in tax havens, representing up to $280 billion in lost income tax revenues worldwide. These astounding revelations spurred on the implementation of Common Reporting Standards (CRS), a system developed by the Organisation for Economic Co-operation in 2014.
At an investor meeting in Cape Town this week, Michael Yuille, the managing director of Northern Cross Wealth Management, said that, through the Common Reporting Standards (CRS), governments and tax authorities can find out whether local tax residents have undeclared assets outside their country