Available Online at www.e-iph.co.uk Indexed in Clarivate Analytics WoS, and ScienceOPEN ASLI QoL 2021 AQoL2021LangkawiIsland https://www.amerabra.org; https://fspu.uitm.edu.my/cebs; https://www.emasemasresources.com/ 5 th ABRA International Conference on Quality of Life Holiday Villa Langkawi, Langkawi Island, Malaysia, 15-16 Dec 2021 eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC- ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v6i18.3019 243 Addressing Offshore Tax Evasion Challenges in the Rising of Digitalization Economy Nadia Omar 1 2 , Wan Liza Md Amin 1 3 , Nurazlina Abdul Raof 1 2 1 Faculty of Law, Universiti Teknologi MARA, Shah Alam, Malaysia 2 Ph.D. Candidate, International Islamic University Malaysia, Gombak, Malaysia 3 Faculty of Law University of Edinburgh Scotland, United Kingdom nadiaomar@uitm.edu.my, wanliza@uitm.edu.my, nurazlina@uitm.edu.my Tel: 60163111078 Abstract Countries worldwide have lost billions of dollars in tax revenue due to tax evasion on income from offshore bank accounts. The increasing challenge in a rising digital economy, has brought about significant economic and social disruption, necessitating advanced measures to combat offshore tax evasion. Hence, this paper aims to provide an overview and critical analysis of the digital approaches taken globally to curb offshore tax evasion strategies used by individual and multinational corporations. This paper employs library-based doctrinal study and comparative legal analysis in a descriptive, analytic provision, and prescriptive manner. Keywords: Offshore Asset, Tax Evasion, Digital Economy, Law Reform eISSN: 2398-4287© 2021. The Authors. Published for AMER ABRA cE-Bs by e-International Publishing House, Ltd., UK. This is an open access article under the CC BYNC- ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v6i18.3019 1.0 Introduction Evading taxes through offshore bank accounts is the most common way for tax evaders in the international landscape. Countries worldwide have lost billions of dollars in tax revenue due to tax evasion on income from offshore bank accounts. The Tax Justice Network (2021) reports that countries globally lose over USD427 billion in tax every year. Out of this global loss, Malaysia experienced USD1,378,671,123 loss each year, which is equivalent to USD45 per member of the population. Of this amount in tax lost each year to tax havens, the report shows that USD1 billion is directly lost to corporate tax abuse by multinational corporations and private tax evasion. Private tax evaders paid less tax than they should have by sheltering their financial assets offshore, causing Malaysia to lose USD330 million. Disparities in tax law systems across foreign countries encourage even more cross-border tax evasion. Indeed, the fight against offshore tax evasion remains a significant challenge for all governments. However, the methods by which governments enforce the tax laws and by which individuals and firms evade their taxes change over time, due at least in part to changing technology (Alm, 2021). Without a comprehensive reform on local regimes, offshore tax evasion activities could not be curbed, and a government would be at high risk of losing its revenue. The increased priority to combat tax evasion necessitates the thoughtful reassessment of existing legal frameworks and enforcement methods to determine their efficacy in tackling this financial crime. In addition, the government needs to keep pace with the fast changes occurring in the digital economy. However, despite this fundamental change globally to previous enforcement practice, academic legal studies have not kept up with the developments in this area. Scholarly attention to the law on this