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” →

Bad week for the big four

Last week was a bad week for the big four accountancy firms. These companies, which have for years marketed themselves as technocratic advisors to both governments and business, are seeing more exposure for the role they have played in driving the offshore economy, tax abuse, and the emptying of government treasuries around the world.

Firstly, the Paradise Papers revealed more about how the big four created a number of schemes to help companies avoid taxation. Amongst the papers were documents from PwC and Deloitte advising the private equity firm Blackstone on how they could not pay stamp duty on property sales and income tax from the rental on commercial property.

We also saw new research demonstrating how big four accountancy firms promote the use of tax havens by multinational companies. Research authored by Dr Chris Jones and Dr Yama Temouri of Aston Business School and our own chief executive, Alex Cobham demonstrates how big companies who have a big four accountancy firm as an auditor are much more likely to use tax haven subsidiaries.

You can see Alex talking about this new research in this video, and see our press release on the publication of the research here. The full paper is now free to download, through Aston’s kind provision of open access here.

Meanwhile in Italy, the big four auditors have been collectively fined €23m for colluding to fix government procurement tenders – hardly the behaviour of neutral, technical guarantors of financial probity.

And the Financial Times has published a variety of critical reaction to the role of the big four in the paradise papers, including ours:

Alex Cobham, chief executive of the Tax Justice Network, called for the establishment of an independent, global accounting regulator to scrutinise firms found to have promoted aggressive tax avoidance strategies.

“The Paradise Papers make clear that the Big Four play a critical role not only in the creation and aggressive promotion of tax avoidance schemes, but often also have a hand in the anonymous offshore ownership structures which can be put to all sorts of nefarious purposes,” he said.

The key question now is whether policymakers will be willing to impose the transparency and regulatory scrutiny that the big four so clearly need.

#ParadisePapers: The Mauritian Connection

What do Angola’s sovereign wealth fund, the cast of British TV show Mrs Brown’s Boys, and Yale University’s investment in India have in common? The Paradise Papers reveal that they are all connected with offshore secrecy jurisdiction Mauritius, with the assistance of offshore law firm Appleby.

Appleby’s Mauritian office helped Swiss-Angolan financier, Jean-Claude Bastos de Morais, to incorporate companies in Mauritius and other secrecy jurisdictions to direct some of the public money from Angola’s sovereign wealth fund that he manages to investment projects in which he has a stake. Several cast members of Mrs Brown’s Boys avoided paying tax on their earnings in the UK and Ireland by loaning money to themselves through a series of trusts and cell companies set up in Mauritius. And Yale University sought Appleby’s services to invest USD 100 million in India via Mauritius without being subject to capital gains tax in either country. Continue reading “#ParadisePapers: The Mauritian Connection” →

#ParadisePapers and the Big Four: in the words of a former insider

We’re sharing in full an article by tax ethicist George Rozvany who racked up 32 years of experience at senior levels of Big 4 accounting firms and major corporations. We interviewed him previously on the Taxcast along with the award winning economics and finance journalist Michael West speaking on the Australian experience of the Big Four. Firstly I asked him for a comment on the Paradise Papers:

The Paradise Papers represent what has now become a familiar milestone in the world of international tax avoidance. This world was founded by shadowy figures cloaked in the dark money of crime gangs invited in by the glitterati of rocky outcrop islands made vulnerable with the collapse of colonialism. Bereft of the financial support of formerly vast empires, these nations became the willing whores of the international crime gangs drafting taxation laws with the assistance of unethical accountants and lawyers at absurdly low taxation rates to preserve impossibly large fortunes built from the suffering of humanity. The decades rolled on and the crime gangs were joined by the international accounting firms of today serving the unethical end of the corporate market. These organisations have become so powerful that they can persuade the lead nations of the world to be “tax competitive,” lowering corporate tax rates levels against all economic sense and social responsibility to deny necessary support to the most disadvantaged in society. The Paradise Papers are important because they disclose the truth in all its ugliness. Only the blind cannot see and it is hoped the this this does not extend to the Lawmakers of the world well capable of putting to an end the social nightmare of the international tax avoidance industry.” Continue reading “#ParadisePapers and the Big Four: in the words of a former insider” →

Our November 2017 Spanish language Podcast: Justicia ImPositiva, nuestro podcast de noviembre 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 November 2017 programme:

Continue reading “Our November 2017 Spanish language Podcast: Justicia ImPositiva, nuestro podcast de noviembre 2017” →

#ParadisePapers: The onshore heart of the offshore industry

We’re sharing this blog in its entirety from Icelandic journalist Sigrun Davidsdottir‘s excellent Icelog.

The Paradise Papers emphasises, yet again, that the damaging effect of offshore is much more pervasive that robbing countries of tax. Offshore creates a two-tier business environment, hiding ownership and in general throwing an opaque veil over the offshored part, thus undermining competition, regulation and ultimately the rule of law. The offshore alchemists also need the rule of law – the heart of the offshore industry is firmly onshore in countries with the stability provided by rule of law. As juicy as it is to read about famous individuals benefitting from insane offshore projects, the offshore enablers are onshore in fancy metropolitan offices, the heart of the offshore industry. Shaming, scrutinising and exposing the enablers needs to be part of anti-offshoring policies. Continue reading “#ParadisePapers: The onshore heart of the offshore industry” →

Big Four accounting firms are key drivers of tax haven use, new research says

As scandals emerge from the Paradise Papers, the Big Four accountancy firms seem to have managed to stay largely out of the spotlight once again. But research released today shows that scrutiny of their practices is justified in the public interest. The new study is authored by Dr Chris Jones and Dr Yama Temouri of Aston Business School and the Tax Justice Network’s chief executive, Alex Cobham. You can find the abstract and details for access here, but here’s a summary of the findings: Continue reading “Big Four accounting firms are key drivers of tax haven use, new research says” →

#ParadisePapers: UN human rights experts react: States must act against abusive tax conduct

The United Nations Independent Expert on the effects of foreign debt and human rights has released a strong statement on the ethical responsibility of corporations in the wake of the Paradise Papers revelations. The current Independent Expert, Juan Pablo Bohoslavsky has said ““Corporate tax abuse undermines social justice and human rights worldwide.” His remit includes monitoring the impact of illicit financial flows on human rights and here he helpfully steers away from the immediate obsession with celebrity and individual greed, instead focusing on the systemic flaws of the global system, in particular calling out  “the law firms that facilitate tax avoidance schemes must assume their responsibility.” It is encouraging that the UN is signaling an awareness and understanding of the devastation reaped globally by Illicit finance, tax abuse and financial secrecy. We share his statement here in full:

Continue reading “#ParadisePapers: UN human rights experts react: States must act against abusive tax conduct” →

#ParadisePapers: residency for sale to the rich and famous

Among the scandals exposed by the Paradise Papers is that of residency for sale, something I covered just last month (along with passports for sale) as a special feature in our monthly podcast and radio show, the Taxcast, which you can listen to below.

The name Shakira Isabel Mebarak Ripoll showed up in leaked Paradise Papers documents. Like many other famous names exposed, the pop star Shakira appears to have used a series of structures and mechanisms to manage her wealth and assets, in her case via Malta and Luxembourg.

The Guardian newspaper also reports that although she now lives in Barcelona, Spain, she’s listed as resident of the Bahamas:

Asked about her listed residence in the Bahamas, the lawyer added that as an international artist Shakira had lived in a variety of places “throughout her professional career and, in every case, has fully met the laws of all the jurisdictions where she has resided”.”

Continue reading “#ParadisePapers: residency for sale to the rich and famous” →

Enough evidence on trusts – where are the State’s actions?

Our two last papers on trusts (here and here) described trusts’ involvement in grand corruption and other cases that would anger any rational person. The Paradise Papers, and recent case law, shed outrageous new light on trusts’ role in worsening inequality, shielding assets from legitimate creditors, and avoiding or evading taxes.

Why does society tolerate these kinds of trusts? When will governments take action? Do we want to live in a world where, as Oxfam put it, “8 men own the same wealth as half of the world”? Continue reading “Enough evidence on trusts – where are the State’s actions?” →