U.S. launches crackdown on international tax evasion
- Text by Alex King
- Photography by Pete Souza

Barack Obama has announced a crackdown on international tax evasion, making direct reference to the Panama Papers: the largest ever leak of offshore financial data, which implicated a number of national leaders.
On Thursday night, the White House announced Obama will take executive action to close loopholes used by foreigners in the U.S. and press Congress to pass further legislation.
“In recent weeks, the disclosure of the so-called ‘Panama Papers’ – millions of leaked documents reportedly revealing the use of anonymous offshore shell companies – has brought the issues of illicit financial activity and tax evasion into the spotlight,” said the White House in a statement.
The key points in Obama’s initial package of measures focus on increasing transparency, with the aim of discouraging tax abuses. They include:
– Immediate executive action against money laundering, terrorist financing and tax evasion through stronger transparency rules.
– New treasury rules to close loopholes which allow foreigners to hide their ownership and financial activity behind anonymous entities, such as shell companies, in the U.S.
– Stricter rules for banks to apply “customer due diligence” when handling clients’ money.
Obama’s package of measures are the most serious response to the Panama Papers yet, although campaigners will no doubt wish they had gone further.
Continued action against the offshore financial industry, to give the tax haven system its proper name, is likely to experience considerable pushback. Strong forces within U.S. political and business circles have an interest in keeping access to tax havens open for corporations and rich individuals.
U.S. government and corporations were instrumental in establishing Panama – which has become the focus of recent revelations – as a tax haven in the early Twentieth Century and its role has grown as the U.S. has tightened tax evasion loopholes since the 1970s.
The U.S. also tolerates the states such as Delaware, which effectively function as internal tax havens. The U.S. has so far dragged its feet on serious reform of tax havens, and resisted calls to join a new international information sharing mechanism that will be up and running in 2017.
Regardless of Obama’s commitment to tax haven reform, further measures are likely to hit obstacles in an election year and reveal the limits of his power during his last year in office.
Enjoyed this article? Like Huck on Facebook or follow us on Twitter.
You might like

Largest-Ever Display of UK AIDS Memorial Quilt Opens at Tate Modern
Grief Made Visible — Comprising hundreds of panels made by lovers, friends and chosen family, the UK AIDS Memorial Quilt returns in full for the first time since 1994 – a testament to grief, friendship and the ongoing fight against HIV stigma.
Written by: Ella Glossop

The carnival and community of New York’s block parties
Soul of the Summer — Since attending his first street party in Crown Heights two decades ago, photographer Anderson Zaca has spent his summers travelling across New York’s five boroughs, documenting over 300 in the process.
Written by: Miss Rosen

Green Day’s Billie Joe Armstrong tells ICE to “fuck off” in LA protest video
Saviors — The singer shared the post on Sunday, featuring the band’s recently released song ‘Fuck Off’ as its soundtrack.
Written by: Isaac Muk

Meet the Kumeyaay, the indigenous peoples split by the US-Mexico border wall
A growing divide — In northwestern Mexico and parts of Arizona and California, the communities have faced isolation and economic struggles as physical barriers have risen in their ancestral lands. Now, elders are fighting to preserve their language and culture.
Written by: Alicia Fàbregas

A new book explores Tupac’s revolutionary politics and activism
Words For My Comrades — Penned by Dean Van Nguyen, the cultural history encompasses interviews with those who knew the rapper well, while exploring his parents’ anti-capitalist influence.
Written by: Isaac Muk

We are all Mia Khalifa
How humour, therapy and community help Huck's latest cover star control her narrative.
Written by: Alya Mooro