I am writing this brief snippet on the recently leaked Mauritius Papers and what I call is becoming the "Finance on Steroids Tax Dilemma" posed by FinTechs just to reflect on possible questions arising that need answers....soon. With the recent release of the Mauritius Papers, tax evasion and tax avoidance are back under public debate as governments and individuals ponder how best to ensure that everyone pays the taxes they owe. The data leaked by the Mauritius Papers put into the spotlight the blurred lines between tax avoidance and tax evasion, which are often facilitated using the same complex mechanisms and can confuse our understanding of what is acceptable tax reduction and what is not. This has put international governments under pressure to address the growing consensus that tax avoidance and the exploitation of tax loopholes has gone too far. Internet technology has further complicated this for governments by transforming the provision of financial services. FinTech has made these services limitless and unregulated by enabling the customer to access all of the financial services that are available, only with the help of a gadget. Of course this can facilitate one or another form of tax abuse. This therefore means that we have to ask ourselves the following questions and find the prompt answers:
1. How does tax evasion and tax avoidance affect FinTechs and what are our responsibilities in combatting it?
2. How are FinTech products used to collect payments or to facilitate tax evasion and tax avoidance?
3. How are FinTech products used to process funds derived from the hidden economy?
4. How are FinTech products used to mask the origin of funds?
5. How can tax authorities leverage against FinTech? By demanding more e-invoicing, e-reporting, e-assessments and e-audits?
6. How can tax authorities have a clearer window into a FinTech company’s tax operations?
