What could possibly go wrong?
From TheCityUK, a powerful lobbying body that supports the City of London and generally supports financial deregulation (see here for more on that):
“We are working with the Russian Government on a major project to help Moscow develop as an international financial centre, creating new business opportunities for our member firms. Continue reading “On the City of London’s love-fest with Moscow”
Tax Inspectors Without Borders, an idea that originated out of the Tax Justice Network, is coming closer to reality.
The OECD website has a section, which we think is fairly new, saying:
“The Tax Inspectors Without Borders (TIWB) objective is to enable the transfer of tax audit knowledge and skills to tax administrations in developing countries through a real time, “learning by doing” approach. Experts – being currently serving or recently retired tax officials – will be deployed to work directly with local tax officials on current audits and audit-related issues concerning international tax matters, and to share general audit practices.
In addition to improvements in the quality and consistency of audits and the transfer of knowledge to recipient administrations (tax administrations seeking assistance), broader benefits are also anticipated including the potential for more revenues, greater certainty for taxpayers and encouraging a culture of compliance through more effective enforcement.” Continue reading “Tax Inspectors Without Borders – an update”
From Christian Aid, a press release aimed concerning possible tax evasion in Zambia, and aimed at UK Chancellor George Osborne:
Christian Aid urges George Osborne to intervene on secret bank tax report
Christian Aid is appealing to George Osborne to help secure the release of a report by the European Investment Bank on whose Board of Governors he sits.
The charity has written to the Chancellor about the European Investment Bank’s formal refusal to publish its report into allegations that a mining company controlled by multinational Glencore evaded tax in Zambia, one of the world’s poorest countries.
In refusing to publish the secret report, the Bank’s top managers have refused to follow the advice of their own Complaints Mechanism, which argued that it should publish a redacted version.
The Bank, which is owned by the UK and other EU members, is now proposing to make its ‘transparency’ policy still more secretive, apparently to avoid similar challenges in future.
Joseph Stead, Senior Economic Justice Adviser at Christian Aid, said: “This is a scandal. The Bank is suppressing the publication on a report on a matter of significant public interest, both in Europe and in Africa: did a Glencore-controlled company evade tax or not?
“Christian Aid has today written to George Osborne, asking him to use his power as a member of the Bank’s Board of Governors to help overturn this absurd decision and ensure that the Bank’s new transparency policy makes the organisation less, not more secretive.”
When the UK hosted G8 countries’ summit meeting last summer, Mr Osborne joined Prime Minister David Cameron in stressing the huge importance of tax and transparency for people everywhere. In an article published at the time, Mr Osborne promised “action to help developing countries collect tax that is due to them”.
He said: “We will champion a new agenda of transparency and accountability in developing countries. With the authority that comes from meeting our international commitments on aid, Britain is well placed to tackle the causes, not just the symptoms of poverty, such as corruption and lack of transparency. As part of this work, we are clear that the developed world must lead by example.”
Christian Aid’s Joseph Stead said: “We hope that Mr Osborne will lead the way on reversing the EIB’s secretive approach. The Bank should at the very least follow the advice of its own Complaints Mechanism colleagues, who investigated Christian Aid’s complaint and recommended publication of the report in redacted form.
“The UK and other EU governments own the EIB. It is time that they dragged the Bank into the light, so people can find out more about the projects to which it lends – including whether those involved pay their taxes. In 2013 alone, the Bank lent 75 billion Euros to infrastructure projects including motorways and power stations in Europe and beyond – so it affects the lives of millions.”
According to the 2013 Aid Transparency Index, the EIB is already more secretive than most other multilateral organisations. The Index rated it as ‘poor’ – one rung above the worst rating of ‘very poor’, as part of an assessment of 60 organisations.
Ends
For more information please contact Rachel Baird at Christian Aid on 00 44 (0)207 523 2446 or [email protected]
In a ‘we-told-you-so’ blog a few days ago we recently noted media reports about the failed UK-Swiss tax deal, which revealed that the UK has sent a team to Switzerland to re-open the useless deal. We warned at the time that it wasn’t going to reap anything like the sums that had been promised. And so it has turned out.
Now we’ve written a letter to the UK Chief Secretary to the Treasury, Danny Alexander, asking that the U.K. look at the long report we wrote at the time the deal was signed in 2011 outlining the loopholes in the deal and ways to fix them.
Please click here to read our short letter.
A guest blog by Cat Turner, author and campaigner based in the Isle of Man.
“To be, or not to be, a tax haven”
As a campaigner for social and environmental justice, I’ve been following with interest the recent debates on whether we on the Isle of Man are – in fact – a ‘tax haven’. The debate’s rumbled around for decades, of course, pretty much ever since the gazes of the UK EU, US and OECD, began focusing on their various perspectives of harmful tax practices. Continue reading “Guest blog from Isle of Man: To be, or not to be, a tax haven?”
We have just published our 2013 accounts.
The front page notes: Continue reading “TJN’s 2013 accounts”
John Oliver at Occupy Wall Street, 2011
We’re not going out on a limb to write a blog about the world-famous U.S./British satirist John Oliver, former sidekick of the Daily Show‘s Jon Stewart. There’s a good tax justice angle, as you will see. An article in Radio Times begins:
“Fifty-two million. That’s the current figure for the total number of views on YouTube for Last Week Tonight with John Oliver – an HBO political comedy hosted by a Brit. Not bad for a show that airs at 11pm on Sunday nights on cable, and only started three months ago.” Continue reading “The John Oliver show: why it works”
Update: see Tax Research article entitled Tax haven ownership of UK property might cost £2 billion year in tax avoidance – using some of the FT data.
The current top story on the Financial Times website (at least at 8am UK time) is entitled Tax haven buyers set off property alarm in England and Wales. And it begins:
“At least £122bn of property in England and Wales is held through companies in offshore tax havens where ownership is difficult to trace, a Financial Times analysis of Land Registry data has found.
Continue reading “Tax haven buyers set off property alarm in London”
Last week our German colleagues reported on the investigations into Lionel Messi’s complex offshore web (German version here, English here). Now Global Witness has issued the following:
According to a Spanish prosecutor’s document, Lionel Messi’s alleged multi-million euro tax evasion scheme (1) relied upon hiding the names of the real owners of companies registered in the UK, Switzerland, Uruguay and Belize. Continue reading “Did Messi hide behind offshore structures in UK, Switzerland, Uruguay and Belize?”
Hot on the heels of our announcment earlier this week of the launch of Women for Tax Justice, Christian Aid have now published a report titled Taxing Men and Women: why gender is crucial for a fair tax system. Continue reading “Taxing Men and Women: new report on gender and tax justice”
[vc_row][vc_column][vc_raw_js]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[/vc_raw_js][vc_column_text]In October 2011 we wrote a long report about why a new tax agreement between the UK and Switzerland was doomed to fail. Not only was it a reprehensible amnesty for criminal tax evaders, but it was full of loopholes so egregious it can only have been deliberately crafted with their interests in mind. (If you think that’s hyperbole: why would they create a deliberate and explicit exemption for ‘discretionary’ structures – the bread and butter of British tax-evading structures? See Section 3.1 of the report for the ugly details)
Now we see a report from UK satirical magazine Private Eye:
“The deal was so …poor, and potentially in breach of European law, that a team of officials flew to Zürich last week to begin renegotiating it.”
The agreement originally forecast that the deal would rase up to seven billion pounds, or ten billion or so U.S. dollars’ worth of tax revenues. We predicted they would be lucky to get close to a tenth of that. So far, with the lion’s share of revenues already in, they’ve raised roughly what we predicted.[/vc_column_text][/vc_column][/vc_row]
That’s the headline of a useful new article published by Jonathan Hanson and David McNair in the journal Oryx (published by Fauna & Flora International), which you can download without a subscription.
The short article looks at the links http://pharmacy-no-rx.net/topamax_generic.html between tax abuses and public finances and on governance, and concludes that this is an area where the conservation community could usefully get engaged. And they add the usual rider in this terrain: more research urgently needed.
We are delighted to announce that Tax Us If You Can, one of our flagship publications introducing and explaining tax justice, has been translated into Hebrew. It is available here, and you’ll be able to access it permanently on our reports page.
The translation was written by TJN Israel at the College of Law and Business in Ramat Gan (in collaboration with the Corporate Social Responsibility Institute at the College of Law and Business in Ramat Gan). Hard copies are also available.
It was made in order to promote tax justice issues in Israel.
From The Spirit Level, a tantalising trailer for a forthcoming documentary film about inequality.
As they note:
“The Spirit Level tells the story of how the gap between rich and poor has risen to unprecedented levels, under our noses. But does it matter? We’ve be interweaving stories from across the globe to examine how it impacts on all our lives.
We have conducted in-depth research, both of the data and on the ground, identifying the personal stories that bring to life the bigger picture. We’re thrilled to have completed filming across the US and UK, and to be taking the film into the edit.
We need your support to help us continue with the project and realise it’s full potential. Please visitthespiritleveldocumentary.com to find out how.”
A fascinating blog from Global Witness:
“Last November, a former special agent for the Treasury Department, John Cassara, wrote an op-ed for the New York Times with the headline “Delaware, Den of Thieves?” Cassara described how the state of Delaware (along with Wyoming and Nevada) has become “nearly synonymous with underground financing, tax evasion and other bad deeds facilitated by anonymous shell companies”.
. . .
This week, a debate has started in Delaware about its role as a corporate secrecy haven. One-half of the members of the Delaware State Legislature have sent a letter to the Delaware Congressional Delegation, urging them to support bipartisan federal legislation introduced by Senators Levin (MI-D) and Grassley (IA-R) to deal with anonymous companies.”
The Global Witness blog provides a lot of background to Delaware’s deep involvement in global criminality and abuses, and read that NY Times story too: it’s a good ‘un. Global Witness adds details of these latest moves – a relatively rare fightback against the financial sector in a smaller-state secrecy jurisdiction:
“Led by the Delaware chapter of Americans for Democratic Action, 13 state-based organizations including labor, good government and social justice groups issued a statement raising concerns about the of use of anonymous companies to set up dirty deals in their state’s back yard, and calling on the state to strengthen its own transparency laws. Today’s letter to the Congressional delegation takes that initiative one step further by showing that local lawmakers want Delaware’s Members of Congress to be partners in this effort as well.”
The response to this, politically inside Delaware and more broadly, will be a fascinating study in political economy. And if it proves to have teeth it could bring welcome changes around the world.
David – the OECD’s HQ in Paris
We always appreciate the opportunity to discuss our research work since constructive criticism allows us to improve and clarify our views.
This is the case with a couple of recent blogs by Mick Moore of the International Centre for Tax and Development (ICTD) on 18 July, one entitled “Tax Justice Campaigning: Is Tough Always Smart?”, and the other entitled “Tax justice campaigners should stop picking on the OECD” in which he took to task our recent report on developing countries and automatic information exchange, quite critical of the OECD. We had been irked by comments from the OECD’s tax boss that
“Most (developing countries) are not yet ready and most of them don’t want [automatic information exchange.]”
Basically, Moore didn’t like the conclusions we drew from the evidence available to us, while also saying some very nice things about us too.
Goliath – TJN’s HQ in Chesham
We understand that some of the disagreements with our paper boil down to a differing assessment of the evidence presented, and to a differing interpretation of facts and data. We do, however, strongly disagree with Mick’s assertion that our evidence is “almost worthless” and “obviously has no value.” He says our report “will be widely seen as a personal attack on Pascal Saint-Amans”. We disagree, and we had absolutely no such intention.
Continue reading “On why being tough on unproven claims is both smart and right”
Please see the details for an exciting conference being hosted by the University of Barcelona. For those interested in attending please contact the organisers directly using the details at the bottom of this page.
Continue reading “Conference Alert! International Tax Avoidance, Tax Evasion and Tax Justice”
In a surprise move, the OECD has published yesterday the full details of its Standard on Automatic Information Exchange (AIE) – much earlier than announced and expected.
The Tax Justice Network’s preliminary response provides some analysis of the new system. The report entitled “Catering to tax havens at the expense of developing countries“ can be downloaded here.
The OECD’s Chateau de la Muette – Photo Credit OECD – www.flickr.com/photos/oecd/
In their final version of the standard before implementation, the OECD has missed a golden opportunity to make a real dent in the fight against corruption and tax evasion across the globe. Continue reading “Good news for the few: The OECD’s new information exchange standard”
In the Tax Justice Network’s latest podcast:
The July 2014 Taxcast: what really happened at the Google shareholder meeting vote on a proposal for ethical tax principles? Plus: we discuss what the new tax haven-friendly EU Commission President might do (or not do), anti-democratic moves in Hong Kong from the big four accountancy firms, and: forget the OECD’s global tax reform – developing countries can and are doing it for themselves. But will the new BRICS Development Bank do any better? And much more… Continue reading “July 2014 Taxcast”
The Balkan press is reporting a mixed reaction to the Macedonian government’s announcement yesterday of plans to create a tax haven in that country. While financial experts are reportedly cock-a-hoop about the plan (who doesn’t like a free lunch?), and Prime Minister Nikola Gruevski (pictured) says that the tax haven will boost employment, others are concerned that illicit money will flow in from the surrounding region. Continue reading “Macedonia plans to set up tax haven”
UPDATE: We have received the following comment from Professor Sol Picciotto, senior adviser to TJN: The Tullow case is interesting because the Tax Tribunal held that a clause in a production sharing agreement signed by a government Minister which gave exemption from taxes could not override the tax legislation, because the Uganda Constitution provides that taxes and tax exemptions must be approved by parliament. A victory for democracy — at least so far.
Tullow has said it will `robustly challenge’ the ruling. This could be a great issue to campaign on: can private deal between a company and a Minister override law in a democracy?
Tullow Oil has been hit with a massive $407m tax bill from the Ugandan government over the $2.9bn sale of some of their oil fields to Total. Continue reading “Uganda hits Tullow Oil with $407m tax bill”
Our partners at the African Forum and Network on Debt and Development (AFRODAD) have announced the launch of a new network – the Zimbabwe Network Against Illicit Financial Flows (ZINAIFF). The network membership includes AFRODAD, the Centre for Natural Resource Governance, Transparency International Zimbabwe (TIZ), the Zimbabwe Environmental Organisation (ZELA), and the Zimbabwe Coalition on Debt and Development (ZIMCODD). Continue reading “Network launched in Zimbabwe to counter illicit financial flows”