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HSBC scandal latest: how the bank captured a British newspaper

[vc_row][vc_column width=”1/1″][vc_column_text]From Peter Oborne, former chief political commentator for the UK’s mainstream Telegraph newspaper, a tweet that effectively illustrates the ‘country capture’ aspect of the Finance Curse.[/vc_column_text][vc_raw_js]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[/vc_raw_js][vc_column_text] The article by Oborne, for those interested in Britain or keen to understand one of the tools that financial institutions use in ‘capturing’ the minds of the general public, it is well worth reading in its own right. It’s devastating.

The Telegraph, we should add, is owned by two very peculiar wealthy brothers, the Barclay Brothers, who have a long and unhappy tax haven history (also here.) Continue reading “HSBC scandal latest: how the bank captured a British newspaper” →

How Corrupt is Britain? New book coming soon

Watch David Whyte discussing the nature of corruption in Britain:

Banks accused of rate-fixing and promoting tax evasion. Members of Parliament cooking the books. Major defence contractors investigated over suspect arms deals. Police accused of being paid off by tabloids. The headlines are unrelenting these days. Perhaps it’s high time we ask: just exactly how corrupt is Britain? Continue reading “How Corrupt is Britain? New book coming soon” →

We’d go to prison for this! Petition for tax justice

Please, everyone, sign this Avaaz petition:

HSBC bank has just been caught red-handed helping some of the world’s mega-rich dodge taxes! We’d go to prison for this, but governments are treating these powerful people like they’re too big to jail. Let’s show them they’re not. Continue reading “We’d go to prison for this! Petition for tax justice” →

Tweet of the day – London as the front office for global tax avoidance

[vc_row][vc_column][vc_column_text]Following our blogging on Bill Black’s rightful excoriation of See-No-Evil London, a tweet from John Butler, a former managing director at Lehman Brothers and Deutsche Bank:[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_raw_js]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[/vc_raw_js][/vc_column][/vc_row]

HSBC, tax evasion and the link to lax financial regulation

The race to the bottom, London-style

Two quotes of the day, both from an article by Prof. Bill Black, a former U.S. bank regulator:

“Taxes were once termed the price we paid for civilization, but they now represent the price the wealthy brag to each other about refusing to pay as they pillage civilization.”

Quite so.

And then, in the following sentence:

“Because the City of London “won” the “regulatory race to the bottom” it is the worst “vector” for the epidemic of sleaze led by our most elite bankers.”

The first quote is, as we will explain, the direct consequence of the second, with the result being what the Washington Post call places like London “Tax havens for despots, criminals and the Fortune 500.” Continue reading “HSBC, tax evasion and the link to lax financial regulation” →

Quote of the day – Swiss whitewash

From John Gapper in the Financial Times:

“In the past, the Swiss private banking industry operated very differently to the way it does today,” HSBC said this week in its mea culpa. Perhaps so, but I recall Swiss banks claiming in the mid-1990s — a decade before this happened — that tax evasion was in the past. After a while, one stops believing.”

Read our lips: Swiss banking secrecy is alive and well.

Drug cartels, terrorist financing risk and sanctioned regimes also on HSBC’s books under Lord Green

Press release from Global Witness

Systemic failure to stop money laundering or comply with US laws shows need for sanctions for senior executives at big banks

The HSBC tax scandal shows that UK law needs to be changed so that senior bankers are held criminally responsible when they oversee their institutions repeatedly breaking the law, said Global Witness in a new briefing today.
Continue reading “Drug cartels, terrorist financing risk and sanctioned regimes also on HSBC’s books under Lord Green” →

Tax transparency after #SwissLeaks

Cross-posted from Uncounted: Alex Cobham

Yesterday I suggested some specific transparency measures to rebuild trust in light of #SwissLeaks. Today my colleagues at TJN pointed out that they are way ahead of me: here’s how.

Continue reading “Tax transparency after #SwissLeaks” →

Kenya’s Nation comments on HSBC

From today’s edition of The Nation (hat tip Jonathan Davies in Nairobi).

#SwissLeaks – Tax transparency for accountability

Cross-posted from Uncounted: Alex Cobham

Much of the #SwissLeaks data has been in the hands of tax authorities for 5 years. Many of the questions raised relate to individuals and to particular regulators and governments – but there’s also a broader question that goes to the type of solutions that will address the broader loss of trust in tax authorities’ effectiveness and independence. Clear policy changes are needed to recover trust and accountability.

Continue reading “#SwissLeaks – Tax transparency for accountability” →

HSBC: the world’s favourite tax evasion shelter

Today’s media is awash with the latest revelations from the International Consortium of Investigative Journalists about HSBC’s involvement in helping its clients to evade and avoid tax. BBC’s flagship documentary programme, Panorama, will be covering the story tonight. We have previously covered the international dimensions of this story here, here and here, for example. Continue reading “HSBC: the world’s favourite tax evasion shelter” →

British government can (and should) impose public registries on its overseas territories

“I studied at Oxford . . . majored in western hypocrisy.”

Ed Miliband, leader of Britain’s main opposition party, has written to the local governments of the U.K. Overseas Territories (OTs) and Crown dependencies (CDs), advising them that, if elected, a Labour government would require them to publish publicly available registers of the ultimate beneficial owners of all the companies registered in their territories. This is good news, and we hope all other parties will follow suit. Continue reading “British government can (and should) impose public registries on its overseas territories” →

PWC – Profits Without Conscience

Accounting multinational PWC has been condemned in a new report by the UK Parliament’s Public Accounts Committee (PAC) for providing misleading evidence to Parliament and “promoting tax avoidance on an industrial scale.” The Committee, which has led the way globally in exposing the tax avoidance industry, has accused PWC of not disclosing its role in helping hundreds of multinational companies to shift profits to subsidiaries in tax haven Luxembourg in order to avoid paying taxes in the countries where the profits originated. Continue reading “PWC – Profits Without Conscience” →

BEPS Through the Looking Glass: Where Do We Stand?

Guest blog from TJN Senior Adviser Professor Sol Picciotto, Chair of the civil society BEPS Monitoring Group. Continue reading “BEPS Through the Looking Glass: Where Do We Stand?” →

Quelle Surprise! billions laundered daily through the City

For those of you who haven’t already read Treasure Islands, this recent headline in The Times might come as a shock. The article itself is behind a pay wall, though the jist is easily http://healthsavy.com captured: the head of Britain’s National Crime Agency, Keith Bristow, has warned that London is a global centre for criminal financial activity. What took him so long to discover this?

City launders ‘billions of pounds a day

Continue reading “Quelle Surprise! billions laundered daily through the City” →

Luxembourg Leaks: EU Parliament Inquiry Committee a matter of political will

The following press release was posted this afternoon by Sven Giegold MEP: Continue reading “Luxembourg Leaks: EU Parliament Inquiry Committee a matter of political will” →

Support a Tax Dodging Bill

In the run-up to the general election in the UK this May, a campaign is underway to persuade ALL candidates from ALL political parties to engage in a race-to-the-top to ensure fair and effective corporate taxation. Continue reading “Support a Tax Dodging Bill” →

The Mbeki panel on illicit financial flows: Africa leads the way

Former South African president Thabo Mbeki panel has presented the findings of his panel to the African Union summit, where they were adopted directly into the declaration. Now, we’re biased for all sorts of reasons (more on that below), but this is an historic moment – and probably the most important report yet produced on this issue. Continue reading “The Mbeki panel on illicit financial flows: Africa leads the way” →

Mbeki Report On Financial Crime Will Shift Global Tax Debate, Says Christian Aid

UPDATE: The report of the High Level Panel on Illicit Financil Flows chaired by President Mbeki was adopted by the African Union Summit meeting on 31st January 2015. This represents a major milestone for the global tax justice movement. Campaigners throughout Africa can now push their governments to implement the many measures identified by the report. Similarly, campaigners in non-AU countries, especially in Europe and North America, can put pressure on their governments to take strong action against OECD based secrecy jurisdictions and against the large community of multinational businesses and investors who avoid and evade tax in African countries. Tax Justice Network is proud of its contribution to the varied processes that have led over a number of years to the adoption of this report. Continue reading “Mbeki Report On Financial Crime Will Shift Global Tax Debate, Says Christian Aid” →

Jean-Claude Juncker and tax haven Luxembourg, in a picture

From Gabriel Zucman, an image enhanced by David Walch of Attac-Austria:

Source: Gabriel Zucman; tinyurl.com/njy2al2. (NB Bermuda isn’t in the Caribbean, but in the North Atlantic.)

Juncker, of course, has denied responsibility for his role in Luxembourg’s tax haven activities such as the Luxleaks scandal. In his role at the head of the European Commission it’s politically important for him to say this. But this graph, we think, tells an important story.

The Tax Justice Research Bulletin – 1(1)

January 2015

The Tax Justice Research Bulletin is written by Alex Cobham

This is the inaugural Tax Justice Research Bulletin, the first of a monthly series dedicated to tracking the latest developments in policy-relevant research on national and international taxation. This issue looks at a new paper using the longest series of tax data that exist for any one country (challenges to this very welcome!), and an article on property taxation in Africa. The Spotlight section focuses on inequality and redistribution – including an important study from UN-DESA, Joe Stiglitz’s take on Piketty, and answers to that question you’ve been quietly pondering: just how much could you tax the 1%? Continue reading “The Tax Justice Research Bulletin – 1(1)” →

Economists and academics back the Tax Dodging Bill

TJN’s John Christensen joins up with almost 70 other economists and academics in the following letter backing the Tax Dodging Bill proposal published in The Times today: Continue reading “Economists and academics back the Tax Dodging Bill” →

Thank you!