Tax crime is a global issue that requires a coordinated global response. The Joint Chiefs of Global Tax Enforcement (J5) is at the forefront of the battle against international tax crime and money laundering, including the emerging threats from cryptocurrency. Formed on July 1, 2018, the J5 was established in response to the Organisation for Economic Co-operation and Development (OECD)’s call for nations to do more to combat the enablers of tax crime.
Composition and mission
The J5 unites the leading tax, offshore tax evasion, cryptocurrency, and cyber experts from five countries: Australia, the United Kingdom, the United States, Canada, and the Netherlands. These nations collaborate to share intelligence rapidly, build capabilities, and conduct operational activities. The participating agencies include:
- Australian Taxation Office
- His Majesty’s Revenue and Customs (United Kingdom)
- Internal Revenue Service Criminal Investigations (United States)
- Canada Revenue Agency (Canada)
- Dutch Fiscal Information and Investigation Service (Netherlands)
The scope of transnational tax crime
Transnational tax crime involves breaches of tax law that span multiple countries in their planning, execution, or impact. These crimes often involve organised crime groups and wealthy offshore tax evaders who exploit the global financial system with the help of professional enablers. Recognising that working in isolation is ineffective, the J5 operates as a robust international alliance with a shared goal: to target facilitators and enablers, cybercrime, and cryptocurrency-related tax evasion, and to enhance each country’s capabilities through collaborative efforts.
Operational achievements and investigations
Since its inception, the J5 has embarked on numerous investigations targeting sophisticated international enablers of tax evasion, including financial institutions and intermediaries facilitating the concealment of income and assets. These efforts focus on high-end enablers previously considered beyond the reach of individual member countries.
In addition to traditional tax evasion, the J5 is also tackling money laundering involving cryptocurrency and other forms of tax fraud. Recent initiatives and news include:
- J5 tax chiefs closing the net on global tax evasion: A concerted effort to clamp down on international tax evaders.
- Global tax chiefs’ unprecedented multi-country day of action: A coordinated operation across multiple countries to address international tax evasion.
Collaboration with the Serious Financial Crime Taskforce
The J5’s role is supported by the Serious Financial Crime Taskforce (SFCT) agencies, such as the Australian Criminal Intelligence Commission and the Australian Transaction Reports and Analysis Centre, which provide intelligence and investigation support. The SFCT focuses on the most serious and complex forms of financial crime that threaten Australia’s tax and superannuation systems. The partnership between the SFCT and J5 continues to strengthen, advancing investigations into international tax evasion and associated money laundering.
Cyber challenge events and cryptocurrency threats
Cryptocurrencies pose a significant challenge due to their anonymous nature and the ease with which they can be transferred globally. To address this growing threat, the J5 has organised several Cyber Challenge events. These events gather experts from each member country to utilise various data and tools, identifying leads into tax evasion and money laundering involving crypto assets. Reducing the risks posed by crypto assets is a critical focus for the J5, ensuring that tax administrations and law enforcement agencies worldwide are better equipped to handle these emerging threats.
Key takeaways
The Joint Chiefs of Global Tax Enforcement exemplify how international cooperation can enhance the fight against global tax evasion and money laundering. By working together, the J5 nations are better positioned to conduct operations, share intelligence, and ultimately bring those who violate tax laws to justice. This united front ensures that the global criminal community faces the full consequences of their actions, protecting the integrity of tax systems worldwide.
