White House Calls for Pressure on Financial Institutions that Aid Tax Evaders

By Brian Monroe

The White House called on lawmakers Monday to draft legislation that would curb the use of offshore tax havens by financial institutions that do business in the United States. Under current rules, corporations and individual tax evaders turn to foreign banks in the United States or U.S. banks with foreign subsidiaries to house hundreds of billions of dollars in taxable revenue out of the reach of the Internal Revenue Service, the Obama administration said in a statement. The IRS currently has little power to stop the abuses, the administration said. To stem tax avoidance, lawmakers should require that more foreign...