Trusts and the UK: half a step forward, three steps backwards

Remember our paper calling for the registration of trusts? Back then the British government opposed this. During discussions related to the EU 4th Anti-Money Laundering Directive, Treasury spokesperson Lord Newby even said: “We consider registration of trusts to be a disproportionate approach and, in particular, one which undermines the common-law basis of trusts in the UK.”

It may be unfair to ridicule statements made in another era (2014), if it weren’t for the fact that they are still being made in the more modern times of 2017, such as when Jersey Finance claimed, in response to our trust paper, that “the requirement that all persons connected to a trust should be registered is unworkable, disproportionate, costly, and burdensome”.

Now, lo and behold, in 2017 the UK has approved registration of the beneficial owners of trusts…that meet certain conditions. Information will not be publicly accessible – but what were you expecting?! Continue reading “Trusts and the UK: half a step forward, three steps backwards” →

Secrecy, oligarchs and offshore psychology in our December 2017 podcast

In our December 2017 Taxcast: We speak with two time Pulitzer Prize winning author and journalist Jake Bernstein about his new book ‘Secrecy World: Inside the Panama Papers Investigation of Illicit Money Networks and the Global Elite’. We ask what makes offshore players like Jurgen Mossack and Ramon Fonseca tick, and what do the Panama Papers and now the Paradise Papers tell us about Presidents Putin, Trump and the transnational oligarchy? Plus:

Continue reading “Secrecy, oligarchs and offshore psychology in our December 2017 podcast” →

US tax reform and conflicts with international law: guest blog

The US tax bill will be published on Friday 15th December 2017 and will be voted on by Congress early next week. Senior Policy Advisor Didier Jacobs at Oxfam America has written this blog:

The Exceptionalist Tax Bill

The United States Congress is about to adopt a major tax reform that reflects American exceptionalism – the idea that the United States is too awesome to play by international rules. Foreigners, fasten your seat belts!

The Finance Ministers of France, Germany, Italy, Spain and the United Kingdom have written to their US counterpart to warn him that some provisions of the tax bill may contravene trade agreements and tax treaties. The issue is also relevant to emerging countries like China, India or Brazil, which invest in the United States and compete with US companies on global markets. Continue reading “US tax reform and conflicts with international law: guest blog” →

Vive la revolutión… fiscal! Guest blog

Miguel Urbán Crespo, Member of the European Parliament, PODEMOS has produced this guest blog, translated by Luke Stobard which we’re pleased to share:

In his famous work ‘The Ancien Régime and the Revolution’ Alexis Tocqueville held that the French revolution did not really begin in 1789 but two years earlier when the aristocracy refused to pay taxes in the “revolt of the privileged”. The event forced Louis XVI to convene the Estates-General and ally himself with the Third Estate (commoners) to end the aristocracy’s privileges. On 19 June 1790 all hereditary titles of nobility were abolished and associated tax exemptions deemed a “national offence”. Continue reading “Vive la revolutión… fiscal! Guest blog” →

Our December 2017 Spanish language podcast: Justicia ImPositiva, nuestro podcast de diciembre 2017

Welcome to this month’s latest podcast and radio programme in Spanish with Marcelo Justo and Marta Nuñez, downloaded and broadcast on radio networks across Latin America and Spain. ¡Bienvenidos y bienvenidas a nuestro podcast y programa radiofónica! (abajo en castellano).

In the December 2017 programme:

Continue reading “Our December 2017 Spanish language podcast: Justicia ImPositiva, nuestro podcast de diciembre 2017” →

Financial Secrecy Index 2018 – Launch Date January, 30th

We are pleased to announce our final launch date for the next Financial Secrecy Index (FSI). The launch will take place on 30 January 2018 at 18.00 CET.

This next FSI will be covering 112 jurisdictions up from 92 in 2015. We have substantially increased the number of Key Financial Secrecy Indicators to 20 (from 15) and implemented many changes that have been suggested during our stakeholder survey in 2016. Many of the indicators are either exploring new uncharted waters (e.g. comparative freeport and public real estate registry research) or drilling deeper into existing indicators. This will be our most comprehensive FSI, and a more rigorous assessment of financial secrecy than any that has been completed so far by academic or regulatory institutions. Continue reading “Financial Secrecy Index 2018 – Launch Date January, 30th” →

We’re Hiring! Finance and Operations Administrator

This is a new post, created to support TJN’s ongoing institutional strengthening by working with TJN’s new Head of Operations to build, manage and run a set of key systems and processes covering a range of organisational capabilities, with a focus on grants management, finance and operations. The post will also provide a limited amount of administrative support to TJN’s Chief Executive. We are looking for someone with experience in finance and administration who is a skilled communicator and team player and can deliver on a wide-ranging set of responsibilities.

The post is full-time (although we will consider part-time and job-share arrangements), and home-based (we will consider candidates based outside the UK, but are likely to give preference to candidates based in the UK). We are looking for someone who is able to start in early March 2018. The salary is £30,000, and benefits include flexible working arrangements, support with home office setup, 33 days of annual holiday (including public holidays), and a 12% employer pension contribution.

A job description is attached. If you are interested in applying for this post, please upload a CV and answer a series of questions (addressing the skills listed in the person specification as well as your motivation) at https://form.jotformeu.com/73385866144365 by Wednesday 10 January at 23.59 GMT. You do not need to address the attributes; these will be explored at interview. We anticipate that first round interviews will be held between 15 and 19 January (in London or Oxford, or on Skype for candidates based in other parts of the UK), with second interviews the following week. For an informal discussion about the role, contact Will Snell, Head of Operations, on [email protected] or 07928 858882.

Use the following link to download the full job description TJN Finance & Operations Administrator JD

More background about TJN:

The Tax Justice Network (TJN) is an independent international network, launched in 2003. It is dedicated to high-level research, analysis and advocacy in the area of international tax and financial regulation, including the role of tax havens. TJN maps, analyses and explains the harmful impacts of tax evasion, tax avoidance and tax competition; and supports the engagement of citizens, civil society organisations and policymakers with the aim of a more just tax system. TJN pursues systemic changes that address the international inequality in the distribution of taxing rights between countries; the national inequalities – including gender inequalities – that arise from poor tax policies; and the national and international obstacles to progressive national tax policies and effective financial regulation.

Supported by a major five-year grant from the Ford Foundation, and by other funders including Norad and the Adessium Foundation, TJN is in a period of growth and transition, with a focus on institutional strengthening – building systems and capabilities to enable and support growth and impact through our ambitious five-year strategic programme. TJN is a virtual organisation, with staff working from home across multiple countries and continents, although its legal base (and that of many employees) is in the UK.

Indian cess taxes: A call for accountability (Guest blog)

This piece is about cess taxes levied by the current government in India written for us by Ashrita Prasad Kotha, Assistant Professor at Jindal Global Law School whose work on ‘Cesses in the Indian Tax Regime: A Historical Analysis’ has been published as a book chapter in Studies in the History of Tax Law by Hart Publishing. The potential of ring-fenced or ear-marked taxes is an interesting one in building public trust in the taxation process and accountability structures, but the path is far from smooth, as Assistant Professor Ashrita Prasad Kotha explains here:

The Indian government is empowered to levy special levies called cesses, in addition to taxes and fees. A cess is an earmarked levy, or a ring-fenced tax, its purpose identified by the name. A cess may bear the characteristics of a tax or a fee.

The national government has increased the share of cess taxes from 2% in 1999-2000 to a staggering 10 % in 2016-2017 as you can see in the Receipts Budget of the Union Government. At the heart of their popularity is an exception under Article 270 of the Constitution. While the general rule is that the proceeds from tax revenue must be shared among State governments, the proceeds from a cess tax are national government initiatives, and are not shared. However, in practice, successive national governments have proven to be ill-equipped in administering cess taxes, with large amounts not being utlised. Continue reading “Indian cess taxes: A call for accountability (Guest blog)” →

The EU Tax Haven Blacklist – a toothless whitewash

Continuing our coverage of the EU Tax Haven Blacklist, we are reposting this article which first appeared in Public Finance International. The original can be found here: http://www.publicfinanceinternational.org/opinion/2017/12/eu-tax-blacklist-whitewash

Continue reading “The EU Tax Haven Blacklist – a toothless whitewash” →

Human rights costs of the proposed U.S. tax cuts

The UN Special Rapporteur on Extreme Poverty and Human Rights Philip Alston is making an official visit to the United States to investigate the links between the growing phenomenon of poverty and human rights deprivations. This comes at a time when the current administration is working on passing some of the most regressive tax reform proposals in U.S. history. Our friends and colleagues at the Center for Economic and Social Rights have raised their deep concerns over the devastating consequences, not just for citizens in that country, but for people around the world. They’ve detailed their view on the human rights costs of these proposals in a formal submission Fiscal Impoverishment in the United States, In it they warn that these tax plans will deepen poverty and inequality for those living in the United States, enable transnational tax abuse and undermine the ability of countries around the world to invest in human rights. Continue reading “Human rights costs of the proposed U.S. tax cuts” →

The Bogota Declaration on Tax Justice for Women’s Rights

The Bogota Declaration on Tax Justice for Women’s Rights is being launched around the world today (7 December 2017) through online platforms and at tax justice events in Argentina and Chile. You can read the Declaration text in English, Spanish, French, Portuguese, Arabic and Swahili here: EN / ES / FR / PT / AR / Swahili Organisations are invited to join the Global Alliance for Tax Justice, Public Services International, the Tax Justice Network, Friedrich-Ebert-Stiftung and many other leading groups in supporting this declaration by signing it here.

From South to North, women are largely excluded from the structures and powerful systems that dominate domestic and international fiscal policy and financial architecture. Women’s rights and tax justice communities are uniting to change this. Earlier this year in Bogota, Colombia, researchers, advocates, public service trade unionists and activists from the tax justice and women’s rights movements convened a global meeting of leading organisations and thinkers.

The Bogota Declaration on Tax Justice for Women’s Rights, a result of this meeting, sets out shared values, and demands rights for women which can be realised through structural, systemic, cultural and fiscal policy changes. In light of the recent Paradise Papers and Panama Papers tax haven investigations, action for tax justice is urgently needed to end inequality. Your organisation is invited to share this vision, to sign up to the commitments of the Declaration and work with us to realise the full range of fundamental human rights for women.

You can read more about the Tax Justice Network’s Tax Justice and Human Rights programme here. And here’s a podcast interview with Liz Nelson, the Tax Justice Network’s director of our Human Rights programme:

Continue reading “The Bogota Declaration on Tax Justice for Women’s Rights” →

The EU flunks the tax haven test

The Tax Justice Network today expresses its deep frustration at the lack of effective action being taken by the EU following the publication of its so-called tax haven blacklist. Commenting on the publication of the list, Alex Cobham, chief executive of the Tax Justice Network said:

“The EU has today missed a great opportunity to tackle the real issues lying behind the large-scale tax avoidance and tax evasion that is bleeding EU countries dry.

“Rather than have a list of tax havens based on an objective set of criteria, as originally envisaged, the list appears to be a political fix with EU members picking their least favourite countries to name and shame. The result of the flawed blacklisting process is a politically led list, that includes only the economically weak and politically unconnected. Continue reading “The EU flunks the tax haven test” →

Dear mining companies, why do you use tax havens?

The Southern African Catholics Bishops Conference has written an open letter to 21 mining companies operating in South Africa asking each to explain why they use tax havens. Their full letter is here and it’s worth reading. They point out, “we are not accusing companies of anything. We believe it is important for companies to provide an explanation for why they use tax havens and the roles of these subsidiary companies.”  Quite so. They ask mining companies pertinent questions, such as:

We’re sharing their press release about it: Continue reading “Dear mining companies, why do you use tax havens?” →

Call for papers: TJN annual conference #tjn18

#tjn18

PARADISE LOST?

DESIGUALDAD E INJUSTICIA FISCAL

(INEQUALITY AND TAX INJUSTICE)

Lima, 13-14 June 2018

Download this call for papers: Spanish / English.

Tax is a crucial tool for challenging inequalities, redistributing incomes and raising revenue for public spending. But the sovereignty of states in pursuing such policies is comprehensively undermined by the ability of elites and multinational companies to hide or otherwise remove their income from the tax net; through broader patterns of corruption; and by lobbying against policies for direct taxation of income, profits and capital gains. And while Latin America is recognised as having had important achievements in reversing the growth of income inequality in recent years, that trend may be weakening, with many countries in the region continuing to exhibit high inequality levels and weak redistribution. Continue reading “Call for papers: TJN annual conference #tjn18” →

Podcast: the history of tax havens (in Spanish): una miniserie especial – Breve Historia de de los Paraísos Fiscales

From Sir Francis Drake to the Panama Papers, we offer this special, six part mini-series in Spanish for our listeners and radio broadcasters around the world. Para nuestros oyentes y radiotransmisores, tenemos un programa especial “Breve historia de los paraísos fiscales” (desde el pirata británico Sir Francis Drake hasta los Panama Papers – abajo en Castellano).

This stand-alone special mini-series has six parts and covers:

1 – How British pirate Sir Francis Drake’s tax evasion on rum and jewels laid the foundations of today’s tax havenry at the centre of international financial architecture.

2 – Switzerland, the Nazis and the origins of modern tax havens.

3 – How the British empire remodelled itself after the Second World War as a financial empire to retain its central place in the global economy.

4 – The expansion of Britain’s satellite havens in the 1960s: Cayman, the Bahamas, the mafia and other outlets of the British empire.

5 – The United States enters the tax haven game.

6 – The 2008 financial crash, the Panama Papers, the global economic crisis and the future… Continue reading “Podcast: the history of tax havens (in Spanish): una miniserie especial – Breve Historia de de los Paraísos Fiscales” →

Podcast: Decolonisation and the Expansion of Tax Havens, 1950s-1960s

We’re sharing a fascinating lecture at the University of London’s Institute of Historical Research The lecture has the intriguing title ‘Funk Money’: Decolonisation and the Expansion of Tax Havens, 1950s-1960s and was delivered by Associate Professor Vanessa Ogle of the University of California, Berkeley. The Taxcast was there to record it and you can listen below.

Her forthcoming book is titled ‘Archipelago Capitalism: A History of the Offshore World, 1920s-1980s’ which

reopens the history of twentieth-century political economy and capitalism (in its free-market, neo-liberal variety in particular) in Europe and beyond, by pointing to an economic,  legal, and political regime of smaller, often enclave-like territories and spaces that thrived on the sidelines of a world otherwise increasingly dominated by nation-states: tax havens, offshore finance, flags of convenience, and free trade zones. At the same time, the book provides the first archivally-based account of how ‘offshore’ came into existence as a sophisticated, far-flung system often beyond the reach of national regulators and governments. The book thus seeks to shed light on the origins of tax avoidance and evasion on a global scale, one of the most pressing current problems with profound implications for the rise of inequality throughout the twentieth century. The project uses a multi-archival approach that combines documents from national archives, central banks, multilateral institutions, private banks, and oral history interviews in locations such as Australia, Bahamas, Britain, Canada, Cayman Islands, France, Germany, Guernsey, Ireland, Jersey, Luxembourg, Panama, Singapore, Switzerland, and the US. A pilot article based off this work is forthcoming in The American Historical Review in December 2017.”

The lecture is as interesting as it sounds, have a listen. The power point slides that accompanied the lecture are available here.

Continue reading “Podcast: Decolonisation and the Expansion of Tax Havens, 1950s-1960s” →

Blacklisting the EU: Paradise lost?

On December 5 the EU will be publishing a list of jurisdictions that it considers to be non-cooperative in international tax matters. Today, we name the jurisdictions that we evaluate as meeting their published criteria, in a report co-authored with Wouter Lips of Ghent University and published at Open Data for Tax Justice.

This will not be the first time that the EU has published a ‘tax haven’ blacklist, but this time the effort is much more serious, with the potential for sanctions being levied on those countries which find themselves on the list. That could have serious implications for the jurisdictions listed, which could by 2019 include the UK. And it means that the flaws in the EU’s approach, such as those which ensure the exclusion of the United States, have also become much more serious concerns.

Continue reading “Blacklisting the EU: Paradise lost?” →

The Finance Curse research agenda: what we learned

This blog was first published on 27th November 2017 on the SPERI political economy blog.  We have republished it with the kind permission of the author, Andrew Baker, Faculty Professorial Fellow, SPERI who discusses the key points from the recent workshop with the Tax Justice Network:

Earlier this month scholars from seven countries and seven disciplines, representatives from four NGOs, journalists from the Financial Times and Le Monde, and a Bank of England official met in Sheffield to scrutinise and dissect the concept of the Finance Curse. The concept and broad frame of the finance curse, was subjected to a process of empirical and conceptual stress testing over a day and a half. The exercise established where good data and understanding exists, where gaps in existing knowledge lie and where further exploration is required. Continue reading “The Finance Curse research agenda: what we learned” →

The Spider’s Web: Britain’s Second Empire – released for home viewing

from hushhushvideo PRO on November 23, 2017

Watch trailer
Genres: Documentary
Duration: 1 hour 18 minutes
Subtitles: 7 languages + Show
Availability: Worldwide

TJN’s John Christensen and film director Michael Oswald (97% Owned, Princes of the Yen) co-produced this 78 minute feature documentary about how Britain transformed from a colonial power to a global financial power.  Following its successful premiere screening at London’s Frontline Club in July 2017, The Spider’s Web is now available for public screenings (more information here ) and for upload

At the demise of empire, City of London financial interests created a web of offshore secrecy jurisdictions that captured wealth from across the globe and funneled it to London. Today, up to half of global offshore wealth is hidden in British territories and Britain and its offshore islands are the largest players in the world of international finance.

Starring John Christensen (former Economic Advisor to the secrecy jurisdiction of Jersey), Nicholas Shaxson (best selling author and former FT journalist), Michael Hudson (Academic, author and former Wall Street banker) among others.

“Want to know more about the menace of tax havens and the role of the City of London & Overseas Territories? Then this great film is a must!” (Frederik Obermaier – Pulitzer Prize-winning investigative journalist.)

“This film is shocking, persuasive, factual and shaming. Watch it and you won’t view bankers, lawyers, accountants or many in our political elite in the same way ever again.” (Richard Murphy – Professor of Practice in International Political Economy, University of London.)

“A fascinating, informative film asking all the right questions.” (Steve Morrissey – film reviewer)

spiderswebfilm.com

 

In our November 2017 Podcast we discuss the #ParadisePapers and democracy

In the November 2017 Taxcast: we discuss the latest offshore scandal, the Paradise Papers with one of the journalists who got the scoop, Pulitzer prize winning Frederik Obermaier of Suddeutsche Zeitung and the International Consortium of Investigative Journalists. Plus:

– we interpret the enquiries to Jersey from offshore lawyers looking for a new tax haven for Apple (which they’d rather had remained secret…)

– we look at the anti-democratic processes the Paradise Papers uncover

– and we ask – what now for tax justice?

Continue reading “In our November 2017 Podcast we discuss the #ParadisePapers and democracy” →

Twelve Reasons to Oppose Rules on Digital Commerce in the WTO

One of the big concerns of the day for the global economy is oligopolistic behaviour and the closing down of genuine competition by huge players in the market powerful enough to influence the rules so that they can extract greater and greater profits. Well, the ‘biggies’ are at it again, and a new deal is being struck that should concern us all. We’re sharing this piece by Deborah James, the Director of International Programmes at the Centre for Economic and Policy Research. It was originally published here. (Pay particular attention to point 6 and point 9.)

Twelve Reasons to Oppose Rules on Digital Commerce in the WTO Continue reading “Twelve Reasons to Oppose Rules on Digital Commerce in the WTO” →

Reforming the multi-billion dollar accounting and finance education industry

We keep on saying that the Big Four accountancy firms tend to get an easy ride when it comes to the coverage of scandals like the Panama Papers and now the Paradise Papers. All too often the spotlight is shone on the celebrities and the big names that have been exposed. That’s all fair enough BUT it’s important to be able to go to one of the sources of the problem – where are future big four accountants learning all this stuff? We’re sharing Professor Atul K. Shah reflections on the implications of his latest path-breaking book ‘Reinventing Accounting and Finance Education – For a Caring, Inclusive and Sustainable Planet.’

ORGANISATIONS AND CROOKS WHO DISGUISE THEIR FRAUDULENT ASSUMPTIONS AND THEORIES: REFORMING THE MULTI-BILLION DOLLAR ACCOUNTING AND FINANCE EDUCATION INDUSTRY Continue reading “Reforming the multi-billion dollar accounting and finance education industry” →