We have just mentioned a demonstration today in Luxembourg, in the context of a visit there by the European Parliament committee tasked with following up on the LuxLeaks affair. (It’s known as “The Committee on Tax Rulings and Other Measures Similar in Effect” or TAXE for short.) Christian Hallum of Eurodad has now kindly provided, via email, a report on what this body is and how it works. Continue reading “A short FAQ on the European Parliament’s probe into tax rulings”
Edouard Perrin, who faces charges for exposing Luxembourg abuses
Update 2: with a report on the demonstration in Luxemburger Wort, which in contrast to our earlier experiences of Luxembourg media, was quite balanced.
Update1 : with a photo (below) of today’s protest in Luxembourg. Some 50-60 people are reckoned to have attended, a good turnout in tiny, financially captured Luxembourg.
The Dodgy Duchy of Luxembourg, like many small secrecy jurisdictions, can be a nasty place to protest against offshore finance. The sector has its tentacles in the courts, in government: everywhere. The media there is, in our experience, all but captured too, so Luxembourg’s citizenry has a poor record in terms of questioning or challenging the corrupt status quo. To oppose offshore finance can be to risk social censure or — in the case of Antoine Deltour, Edouard Perrin, Dénis Robert, and a number of other whistleblowers — a vicious, personalised attack from the offshore establishment, often led by the Big Four accounting firms such as PWC, which effectively write relevant parts of the Luxembourg legislation. It is a haven for hire. Continue reading “Tax Justice demonstration in Luxembourg as EU tax body visits”
We are delighted to announce the latest edition of our quarterly newsletter,Tax Justice Focus.
This is The Gender Edition, and it is guest edited by Liz Nelson of TJN. It complements a new “Gender” page we’ve just opened up, where these materials will be permanently stored.
[vc_row][vc_column][vc_column_text]Cross-posted from Fools’ Gold:
Our tweet of the day, from a former external member of the Bank of England’s Monetary Policy Committee:[/vc_column_text][vc_raw_js]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[/vc_raw_js][vc_column_text]This post is just a reminder, really, about all the nonsense that is spoken in the name of ‘competitiveness.’
Of course, this is just quarterly data, and the UK was recently growing faster than France. We aren’t going to get into details in this short blog. Continue reading “Is France’s economy really less ‘competitive’ than Britain’s?”
From Madamsr.com:
“Egypt loses as much as LE5 billion [TJN: that’s over $650 million; there’s also a reference to $2.2 billion in annual trade mispricing] a year in tax revenue due to companies using tax havens to shield profits from taxes, according to a new report from the Egyptian Initiative for Personal Rights (EIPR).
The practice also distorts figures for Foreign Direct Investment and allows companies to make investments in Egypt without disclosing ownership details, says EIPR researcher Osama Diab.”
This is just the latest of many reports that has been produced with the support of the Illicit Financial Journalism Programme, which we’re proud to be part of.
The past record is horrible. But . . . read on
The United Kingdom is, in many respects, the most important single player in the world of offshore tax havens (or secrecy jurisdictions.) It has many offshore characteristics itself, and it runs a network of partly-British havens, whose laws it can strike down when it really wants to. So it is significant that Britain has had an election, which saw a Liberal Democrat/Conservative coalition replaced by a purely Conservative Party government. For those who aren’t familiar with British politics, the Conservatives are the mainstream right-wing party.
Continue reading “Will UK’s new government help poor countries fight tax haven secrecy?”
This article is all about the language of financial lobbying.
The consensus that an “oversized financial centre is indispensible” is strong and at times brutally in-your-face in many countries with oversized financial centres. But this consensus can also be sophisticated and subtle, when needs be. Here’s an example of one of the more subtle bits of lobbying by the City of London, helpfully carried by the Financial Times. The headline reads: Continue reading “How to threaten politicians, the City of London way”
Guess which one got the corporate tax cut?
Cross-posted with Fools’ Gold.
From the Financial Times, a report on a survey by the Tolley Tax Journal of businesses’ responses to the UK’s policy of savage cuts to the corporate income tax. It’s about the UK, but it has wide international relevance.
“More than six out of 10 respondents thought the cut in the corporate tax rate, by 8 percentage points to 20 per cent, had boosted their own companies’ investment and growth, although for most it only had a marginal impact.”
Continue reading “Do real investors chase corporate tax cuts?”
The Resource Curse, or perhaps the Finance Curse, in pictures
Regular readers will know that we have a permanent webpage entitled The Finance Curse explaining how countries with oversized financial sectors suffer a range of harms that are rather similar to a so-called Resource Curse that afflict resource-rich countries, and for a wide range of similar reasons.
The Economist has recently written a long article entitled What’s Wrong with Finance, in which they basically endorse our thesis (though without mentioning us. Hat tip: @NikoLusiani) As they note:
Continue reading “The Economist has noticed the Finance Curse”
Click here for a Spanish language version of the following statement, which comes out of the meeting between tax justice and human rights communities in Lima, Peru on 29th/30th April 2015.
For years, the tax justice and human rights movements have worked along parallel paths to confront the rampant inequality and socio-economic deprivation that result from unfair fiscal policies and blight the lives of billions. These two communities of practice joined forces together last week in Lima, Peru for an international strategy meeting, Advancing Tax Justice through Human Rights, to build a platform for strategy-exchange and alliance-forming. Continue reading “Building the foundation for tax justice through human rights”
Note whose head is on that stamp
From the BVI Beacon, in the British Virgin Islands, a story about the UK’s General Election taking place today:
“The biggest election issue pertaining to overseas territories is whether they each will be required to compile a publicly searchable register listing the beneficial owners of companies based in their jurisdictions.
Leaders in the VI and other OTs [British Overseas Territories] have opposed this proposal, which they say could damage financial services industries. But both Labour and Conservative officials have pushed for the registers . . . The parties, however, differ on how to implement that policy: Labour argues that OTs should be required to adopt a register, and the Conservatives counter that they should be encouraged but not forced to do so.”
Continue reading “British tax havens fret about UK election”
Edouard Perrin, victimised for defending the public interest
The investigative British magazine Private Eye is currently running a short, incisive piece about the Dodgy Duchy of Luxembourg and PwC, which, given its importance, bears repeating in full. It runs as follows: Continue reading “Edouard Perrin, PwC and the Dodgy Duchy of Luxembourg”
Tax justice activists in Lima, Peru, 1st May 2015 calling on companies to pay their taxes
Our audited accounts and the Director’s Report for year ended 31st December 2014 are available here. Continue reading “TJN Report and Accounts for year ended 31 December 2014”
Alex Cobham, TJN’s esteemed Director of Research
Corrected: the earlier version referring to a Banque de France Report said “$8bn revenue loss” when it should have referred to an $8bn loss in tax base.
By Alex Cobham.
TJN (April 2015) – The Tax Justice Research Bulletin is a monthly series dedicated to tracking the latest developments in policy-relevant research on national and international tax. This is the fourth in our series.
This issue looks at ‘inefficient and unjust’ Greek tax policy since 1995; and at some striking results from the US on the employment impact of taxing different parts of the income distribution. Our Spotlight looks at the literature on taxing multinational companies, drawing on a handy study from the OECD’s BEPS (Base Erosion and Profit Shifting) project to tackle corporate tax dodging, and a new Banque de France working paper. Continue reading “The Tax Justice Research Bulletin 1(4)”
Remind us: whose head is that on this Jersey stamp?
Foundations, like trusts and anonymous shell companies, are often used as secrecy vehicles for the purposes of money laundering, tax cheating, and much more. A while ago we pointed to an offshore promoter who had this to say about foundations:
“Trusts are . . . tools of the rich used to stay rich and deny people access to their funds. . . . Foundations were designed not by the rich but by the super rich to protect their assets insulating them from seizure and confiscation. These asset protection tools are so good they should be illegal but they are not illegal.”
Continue reading “Jersey’s foundations law is fit for money launderers: scrap it”
An interesting thing about the forthcoming UK election is that the subject of ‘tax avoidance’ has risen up the agenda so far and so fast. This guest blog briefly reviews the main parties’ manifestos, with a look out for their uses of the term.
[We should add, by the way, that ‘tax avoidance’ is a tricky term to use, and is often wrongly used, as David Quentin has reminded us. We prefer terms such as ‘tax cheating’ which sidestep tricky questions of legality.] Continue reading “Britain goes to the polls: the tax avoidance election”
This is the third post this week on the topic of gender, and to celebrate our arrival in the modern world we have created a new topic page, where you will permanently be able to access news and analysis in this area.
Now we’re delighted to host a guest blog by Diane Elson, Chair of the UK Women’s Budget Group and Emeritus Professor, Department of Sociology, University of Essex. This is a preview article from a forthcoming edition of Tax Justice Focus, looking at gender issues.
Prof. Diane Elson
Gender Equality Requires More Tax Revenue
by Diane Elson
A government’s capacity to reduce gender inequality is determined in large part by the amount of revenue it raises in tax, and how tax payments are distributed. A high level of tax revenue, if raised progressively and spent wisely, enables governments to fund the services, social security and infrastructure that make it easier for women to undertake paid work and to provide jobs for women in the public sector that are often of better quality than those in the private sector. Continue reading “Why Gender Equality Requires More Tax Revenue”
The IFSC in Dublin’s Docklands
Cross-posted from Fools’ Gold:
One of our inaugural articles on this site was a post in March looking at the causes of the “Celtic Tiger” boom in Ireland. It contained a striking graph and a wealth of analysis suggesting strongly that what caused the boom was, above all, Ireland’s accession to the EU single market, rather than its supposedly ‘competitive’ corporate tax policies. After all, Ireland has been trying to be a tax haven since the 1950s, but it was only in the early 1990s that take-off began (also see this rollicking historical account of how Ireland became a corporate and financial tax haven, or offshore financial centre.) Continue reading “The Celtic Tiger: the Irish banking inquiry and a tale of two booms”
This, from the European Trade Union Confederation (ETUC) dates from March 10th, but it remains fresh. It contains some excellent tax justice recommendations – including one surprising and interesting one, which we’ll highlight in bold text: Continue reading “Euro Trade unions spell out tax justice demands”
[vc_row][vc_column][vc_column_text]From the Financial Times:
“Mr Foxley says he discovered gifts to Saudi military officials and illicit payments routed through the Cayman Islands.”
“The UK government is fighting to keep secret details of how it handled allegedly corrupt transactions related to a contract to equip Saudi Arabia’s national guard.”
Credit: Center for Economic and Social Rights
Cross-posted from Fools’ Gold:
From the Association for Women’s Rights in Development, a post related to a landmark meeting in Lima on tax justice and human rights:
“The current “race to the bottom” in which tax competition among developing countries takes place to attract corporate and foreign direct investment is having a negative impact on government budgets needed to finance the advancement of women’s rights.
We prefer the term ‘tax wars‘ instead of tax ‘competition’, but no matter: there is a clear and powerful argument here. The key point is not that budget cuts affect everyone, including women, but that women are disproportionately affected by tax policies that are substantially the fruit of tax wars. It is not just about how much revenue is raised, either: it is about how revenue is raised. As it notes:
On April 30th we wrote a blog entitled Singapore spin: “we are not a tax haven.” They all say that. Then, this morning a news aggregator service provided us with this titillating tidbit:
So we clicked on the link, to find this: Continue reading “Is Singapore censoring critics of its tax haven status? Well, perhaps . . .”