Combining Tax and Financial Crime Prosecution in an Interagency Asset Recovery Strategy
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In large, complex financial investigations, interagency teams may manage the prosecution process (FATF 2012). It is particularly important for prosecutors who draw on the expertise of officials from other LEAs to profit from that expertise to present the case in court more effectively (FATF 2012). Generally, countries have mixed approaches to sharing information with public prosecutors. The approaches vary—direct access, requirements to report, the ability to share with discretion, and sharing on request (OECD 2017a). See box 3.1 for country examples. Some jurisdictions also have expanded their reach to target tax collection from certain offshore arrangements. The range of information that tax authorities can obtain from or about taxpayers engaged in complex offshore arrangements and their ability to pursue these individuals for potential tax crimes also create opportunities for the investigation and recovery of the proceeds of money laundering and other financial crimes—they are often found within these complex offshore arrangements.
BOX 3.1
Country Examples of Information Sharing between Tax Authorities and Prosecutors
The 2017 report by the Organisation for Economic Co-operation and Development on effective interagency cooperation identified various approaches to information sharing with a prosecutor’s office (OECD 2017a). These include: • Direct access to relevant databases. In Chile, the tax authority established a secure website through which the public prosecutor’s office can directly access tax information. In Estonia, tax authorities and the police share a common intelligence database, accessible by both. • Direct access through joint investigative task forces. In Spain, direct access to information is possible when tax authorities are part of an investigation. When they are not, the public prosecutor or examining judge may request the information. In Australia, the Australian Serious Financial Crime Taskforce (SFCT) was established in 2015 as an Australian Tax Office–led interagency task force to deal with the most serious and complex forms of financial crime. The SFCT includes the police, the financial intelligence unit, and the prosecutor’s office, among other agencies, thereby facilitating information sharing. • Spontaneous information sharing. In the Czech Republic, tax authorities are required to report to the public prosecutor any suspected offenses and spontaneously provide information relevant to a reported offense. In any other circumstances, the prosecutor may request information from the tax administration.
