US Senate calls for tougher offshore laws

A United States Senate subcommittee wants tougher laws to combat offshore tax-evasion facilitators around the world.



According to report of the sub committee, offshore abuses are costing US taxpayers an estimated US$100 billion a year.



The senate subcommittee is taking particular aim at banks in Switzerland and Liechtenstein.



It is believed that these banks are helping wealthy Americans to commit massive tax evasion.



The US Senate sub committee is recommending more stringent requirements for foreign banks.



It also wants tougher penalties for financial institutions, which fail to provide the Internal Revenue Service with details of their clients’ accounts.



However, if implemented the recommendations would also impact on so-called tax havens in the Caribbean.