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Tax haven buyers set off property alarm in London

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” →

Did Messi hide behind offshore structures in UK, Switzerland, Uruguay and Belize?

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?” →

Taxing Men and Women: new report on gender and tax justice

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” →

UK government on Swiss tax deal: TJN was right

[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]

Should conservationists continue to dodge the issue of tax dodging?

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.

Tax Us If You Can – the Hebrew edition

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.

The Spirit Level – new documentary film coming

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.”

Delaware corporate secrecy and crime: a long-awaited debate begins

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.

On why being tough on unproven claims is both smart and right

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” →

Conference Alert! International Tax Avoidance, Tax Evasion and Tax Justice

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” →

Good news for the few: The OECD’s new information exchange standard

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” →

July 2014 Taxcast

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” →

Macedonia plans to set up tax haven

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” →

Uganda hits Tullow Oil with $407m tax bill

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” →

Network launched in Zimbabwe to counter illicit financial flows

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” →

Global Alliance for Tax Justice appoints campaigns and communications coordinator

From Dereje Alemayehu, Chair of the Coordinating Committee of the Global Alliance for Tax Justice (the campaign coordination wing of the tax justice movement)

Teresa Marshall

Dear Friends

I am delighted to announce that TERESA MARSHALL will be joining the Global Alliance for Tax Justice (GATJ) as the campaign and communications coordinator, beginning in August 2014. Continue reading “Global Alliance for Tax Justice appoints campaigns and communications coordinator” →

OECD continues to stand in the way of global tax reforms

The following guest blog was written by Renaud Fossard [1]

The idea of ??a political space in international tax issue discussions in the framework of the United Nations is still being blocked by the OECD. Though not much interest has been seen from developing countries either, its implementation is crucial. Continue reading “OECD continues to stand in the way of global tax reforms” →

Honest Accounts? The true story of Africa’s billion dollar losses

For decades Western countries have peddled a fairy tale about Africa’s plight. The tale spins a homely story of how the West provides development aid to assist African nations overcome their own shortcomings.

The tale is, of course, a vicious and mendacious nonsense.

As this new report from Health Poverty Action (which lists TJN as a co-author) details, Western countries have used aid to Africa as a smokescreen to hide the sustained looting of the Continent, which loses nearly US$60 billion a year through tax evasion, climate change mitigation, and the flight of profits of transnational companies.

Those who still believe in fairy tales should watch the following (and also read our earlier study of Africa’s Bane, and for a fuller analysis read Léonce Ndikumana and James Boyce’s excellent book Africa’s Odious Debts).

The World Weekly – Infographic on the Hidden Economy

From The World Weekly:

with kind permission from The World Weekly

4th Illicit Finance Journalism Programme – November 2014 Course

City University London, Northampton Square, EC1V 0HB

4 November 2014 – 7 November 2014

The Tax Justice Network and the Centre of Investigative Journalism have announced the dates for the fourth Illicit Finance Journalism Programme four day training course at City University London. Continue reading “4th Illicit Finance Journalism Programme – November 2014 Course” →

Jean-Claude Juncker and the rise of extremism

We have previously blogged about the role played by the former Luxembourg prime minister in shaping the rise of tax haven Luxembourg. Europe now faces the prospect that he will be elected the next president of the European Commission this coming week. If this happens, those politicians who vote for Juncker will be directly contributing to the re-emergence of extremist politics. Continue reading “Jean-Claude Juncker and the rise of extremism” →

Amazon and the author who smelled a rat

World famous children’s author Allan Ahlberg has rejected a lifetime achievement award because it is sponsored by the tax-abusing retailer Amazon.

Ahlberg, whose many books include The Children Who Smelled a Rat, was due to receive his award at the Booktrust Best Book Awards ceremony last week.

Writing to the Bookseller, he explained that he declined the award on principle because of Amazon’s abusive tax arrangements.

As Ahlberg comments: “Tax, fairly applied to us all, is a good thing. It pays for schools, hospitals – libraries! When companies like Amazon cheat – paying 0.1% on billions, pretending it is earning money not in the UK, but in Luxembourg – that’s a bad thing. We should surely, at the very least, say that it is bad and on no account give it any support or, by association, respectability.”

Some artists get it: others don’t.

Thank you!