Page 95 – Tax Justice Network

Why did the Australian government keep this tax symposium secret? (updated)

Mathias Cormann, Australian Finance Minister

May 26: Updated with new details from the Sydney Morning Herald

This concerns a meeting in Tokyo, hosted by the Australian Treasury, to discuss the G20’s tax agenda. This involves not just the OECD’s “BEPS” project to reform the international rules for taxing multinational corporations, but also the rules and guidelines on information exchange and transparency, as well as on tax matters facing developing countries.

All this has come to the fore in the wake of widespread public pressure to curb secrecy and corporate and other tax abuses, and in general terms we welcome it. Continue reading “Why did the Australian government keep this tax symposium secret? (updated)” →

Human Rights Policy Brief: a Post-2015 Fiscal Revolution

The New York-based Center for Economic and Social Research (CESR) and Christian Aid have just published an important new paper entitled A Post-2015 Fiscal Revolution: Human Rights Policy Brief. It is a most useful contribution to the fast-growing community of researchers and research on the crucial topic of tax justice and human rights. (In fact, the paper focuses on fiscal justice and human rights – which means tax plus spending.)

Continue reading “Human Rights Policy Brief: a Post-2015 Fiscal Revolution” →

How Putin’s comrades washed their money in Switzerland and the UK

[vc_row][vc_column width=”1/1″][vc_column_text]Via a tweet from Ben Judah:[/vc_column_text][vc_raw_js]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[/vc_raw_js][vc_column_text]This is about an excellent Reuters investigation into a Russian state scheme to buy expensive medical equipment – and send money to Swiss bank accounts. It is worth reading in its entirety, but we will hone in on this bit: Continue reading “How Putin’s comrades washed their money in Switzerland and the UK” →

How ‘competitiveness’ became one of the great unquestioned virtues of contemporary culture

This headline is drawn from an important article at the London School of Economics website by Will Davies, Senior Lecturer at Goldsmiths, University of London. We’ve not had contact with Davies, but it seems we have been thinking along similar lines. Continue reading “How ‘competitiveness’ became one of the great unquestioned virtues of contemporary culture” →

Credit Suisse and tax evasion: a fine is fine, but why no jail time?

[vc_row][vc_column width=”1/2″][vc_column_text]From Democracy Now!

“European banking giant Credit Suisse has pleaded guilty to helping American clients avoid paying taxes by concealing assets in illegal, undeclared bank accounts — becoming the largest bank to plead guilty to a criminal charge in 20 years. As part of the plea deal, Credit Suisse will pay about $2.6 billion in penalties and hire an independent monitor. But the bank will not be required to turn over the names of the Americans who used the bank to evade taxes. In addition, no senior Credit Suisse executives will face jail time, and the bank will be allowed to continue operating in the United States.

Indeed. Why was its bank licence not revoked? That would have been a sign of seriousness. See the transcript here.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_column_text][/vc_column_text][vc_column_text]”They’re yodeling through the Alps over the light touch. We’re talking about a Swiss bank that has been doing this kind of activity for decades.”
– James Henry[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/1″][vc_column_text]

According to The New York Times, the Securities and Exchange Commission voted last week to grant Credit Suisse a temporary exemption from a federal law that requires a bank to hand over its investment-adviser license in the event of a guilty plea. We speak to James Henry, former chief economist at McKinsey & Co., now a senior adviser to the Tax Justice Network and senior fellow at the Vale Columbia Center on Sustainable International Investment.”

The Netherlands tax haven: infographic

From SOMO, and a page entitled The Dark Side of the Netherlands. Click to enlarge.

Please share.

Netherlands Tax Haven Infographic

Hedge funds versus tax collectors: quote of the day

From U.S. tax professor Victor Fleischer, in an article looking at how hedge funds and their managers use Bermuda reinsurance vehicles for their tax shenanigans:

“The chess match between tax collectors and fund managers will continue.
The top 25 hedge fund managers have one advantage, though. They made more than five times the income of all the federal, state and local tax examiners, collectors and revenue agents in the United States, combined. Continue reading “Hedge funds versus tax collectors: quote of the day” →

Report: Switzerland’s role in Shell’s tax avoidance

From SOMO in the Netherlands:

“There is not one drop of oil coming out of the Swiss mountains, but still Royal Dutch Shell has eight subsidiaries in Switzerland. Between 2001 and 2005 the Dutch-British oil multinational set up a range of subsidiaries in the country, although these entities are not involved in any productive activities, finds a new report released today. The Centre for Research on Multinational Companies (SOMO) and Friends of the Earth Europe report concludes that Shell uses Switzerland mainly for ‘tax planning purposes’. Continue reading “Report: Switzerland’s role in Shell’s tax avoidance” →

The UK’s shadow economy: £40 billion lost to treasury

The Financial Times reports this morning:

The Treasury is losing more than £40bn of tax a year because of evasion and the hidden economy, nearly four times official estimates, according to a tax campaigner. Richard Murphy of Tax Research UK, a research group, called for tougher checks on hundreds of thousands of “shadow” companies that did not file tax returns, which he estimated resulted in a £12bn loss of tax revenue.

The report, co-published by TJN, is also covered by the Guardian, the Mirror and the Times. The full report is here.

Murphy has issued a press release: Continue reading “The UK’s shadow economy: £40 billion lost to treasury” →

Programme: Tax Justice and Human Rights Symposium, McGill University, Montreal 18-20 June 2014

Tax Justice and Human Rights Research Collaboration Symposium

Faculty of Law, McGill University, Montreal, 18-20 June 2014

Day 1: Emerging Scholars Symposium

Wednesday 18 June Continue reading “Programme: Tax Justice and Human Rights Symposium, McGill University, Montreal 18-20 June 2014” →

Credit Suisse: We were running a criminal enterprise.

We have written at some length about Credit Suisse’s attempted defences of its long-standing business model, highlighted in a headline “Credit Suisse CEO says a few bankers are to blame for $10bn in tax evasion.” As we said:

“The old ‘a few rotten apples’ defence.
“Some Swiss-based private bankers went to great lengths to disguise their bad conduct from Credit Suisse executive management,” Dougan said during his testimony in Washington DC.
Oh yeah? Here’s a more accurate description, Mr. Dougan: it’s institutionalised corruption and criminality in the entire Swiss banking system, for over a century.

Now we see, from a private asset recovery group:

“Credit Suisse is set to sign a document admitting it had unwittingly run a “criminal enterprise” in its past wooing of US tax dodgers (media reports).
“We were running a criminal enterprise, but we didn’t know,” reads the document cited by the media. However, we dispute that they didn’t know – and have the documents to back us up.”

Interesting. Let’s see how this one plays out.

Mining for Gold: tax justice film

We are delighted to provide a short tax justice film covering the Tax Justice Network seminar on transfer pricing held in Dar es Salaam, Tanzania, last October.

The full range of presentations are linked below the film, and will be permanently stored on our Transfer Pricing site.

Continue reading “Mining for Gold: tax justice film” →

Listen to the Tax Justice Network on Resonance FM: a 1 hour Taxcast special radio show

If you missed it last week, you can hear it via the link below. Produced and presented as always by the Tax Justice Network’s @Naomi_Fowler this show focuses on the City of London’s role as a global tax haven hub, the power of the City of London Corporation and unpicks the UK government’s latest claims to be tackling tax havens, secrecy and corporate tax abuse with Tax Justice Network Director John Christensen.

https://soundcloud.com/resonance-fm/unknown-resfm_may_2014-320kbps

All the Taxcast shows can be downloaded here: www.tackletaxhavens.com/taxcast and, more recently on TJN’s youtube channel: http://www.youtube.com/user/TackleTaxHavens You can subscribe by emailing [email protected]

Vodafone subvertisement: taxes are for people, not for massive corporations

[vc_row][vc_column width=”1/1″][vc_column_text]We don’t quite know who DocHackenbush is, but we thought we’d share his tweet.[/vc_column_text][vc_raw_js]JTNDYmxvY2txdW90ZSUyMGNsYXNzJTNEJTIydHdpdHRlci10d2VldCUyMiUyMGxhbmclM0QlMjJlbiUyMiUzRSUzQ3AlM0VJJTIwbm90aWNlZCUyMCUzQ2ElMjBocmVmJTNEJTIyaHR0cHMlM0ElMkYlMkZ0d2l0dGVyLmNvbSUyRlVLdW5jdXQlMjIlM0UlNDBVS3VuY3V0JTNDJTJGYSUzRSUyMHdlcmUlMjBsb29raW5nJTIwZm9yJTIwcGVvcGxlJTIwdG8lMjBkbyUyMHNvbWUlMjBWb2RhZm9uZSUyMCUzQ2ElMjBocmVmJTNEJTIyaHR0cHMlM0ElMkYlMkZ0d2l0dGVyLmNvbSUyRnNlYXJjaCUzRnElM0QlMjUyM3N1YnZlcnRpc2VtZW50cyUyNmFtcCUzQnNyYyUzRGhhc2glMjIlM0UlMjNzdWJ2ZXJ0aXNlbWVudHMlM0MlMkZhJTNFLiUyME9mJTIwY291cnNlJTJDJTIwSSUyMG9ibGlnZWQuJTIwJTNDYSUyMGhyZWYlM0QlMjJodHRwJTNBJTJGJTJGdC5jbyUyRjNuTnZiWm91Z2clMjIlM0VwaWMudHdpdHRlci5jb20lMkYzbk52YlpvdWdnJTNDJTJGYSUzRSUzQyUyRnAlM0UlMjZtZGFzaCUzQiUyMERvY0hhY2tlbmJ1c2glMjAlMjglNDBEb2NIYWNrZW5idXNoJTI5JTIwJTNDYSUyMGhyZWYlM0QlMjJodHRwcyUzQSUyRiUyRnR3aXR0ZXIuY29tJTJGRG9jSGFja2VuYnVzaCUyRnN0YXR1c2VzJTJGNDY3MjU3NzE3ODEyNjU4MTc2JTIyJTNFTWF5JTIwMTYlMkMlMjAyMDE0JTNDJTJGYSUzRSUzQyUyRmJsb2NrcXVvdGUlM0UlMEElM0NzY3JpcHQlMjBhc3luYyUyMHNyYyUzRCUyMiUyRiUyRnBsYXRmb3JtLnR3aXR0ZXIuY29tJTJGd2lkZ2V0cy5qcyUyMiUyMGNoYXJzZXQlM0QlMjJ1dGYtOCUyMiUzRSUzQyUyRnNjcmlwdCUzRQ==[/vc_raw_js][vc_column_text]UK Uncut are getting busy with this company again. And now, another tweet to put it in context, from a former UK corporate tax inspector, now turned tax journalist.[/vc_column_text][vc_raw_js]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[/vc_raw_js][/vc_column][/vc_row]

South Africa’s diamond companies: $11m royalties on $1.73bn of production

From 100 Reporters, an article about a major report from the University of Manchester, which is a fascinating case study in transfer pricing. The article begins:

“At every step, from mine to ring finger, South Africa’s diamond industry is benefitting from royalty and export tax structures riddled with loopholes, shortchanging citizens of one of the world’s premier sources of diamonds of tens of millions of dollars a year in revenue.
In 2011, South Africa produced diamonds whose uncut, or rough, value was $1.73 billion, or 12 percent of global production, according to the most recent government data available. Yet from 2010 to 2011, diamond-producing companies paid South Africa’s government just $11 million in mining royalties Continue reading “South Africa’s diamond companies: $11m royalties on $1.73bn of production” →

It’s (faux) tax panic time again – the U.S./Swiss edition

Yul Brynner in 1985

Bloomberg is carrying one of those tiresome stories entitled Brynner’s Tax Spat Augurs Rush to Give Up U.S. Passports. Tax people too much, it goes, and there’ll be a deluge of people rushing for the exit! The story begins:

“Almost 50 years after Oscar-winning actor Yul Brynner gave up his passport at the U.S. embassy in the Swiss capital, the number of Americans relinquishing their citizenship jumped 47 percent in the first quarter.”

Panic time! Continue reading “It’s (faux) tax panic time again – the U.S./Swiss edition” →

Quote of the day – Google’s tax avoidance

From D omini Social Investments LLC, a corporate pioneer in the area of tax and social responsibility, which recently submitted a shareholder resolution to Google merely to adopt a set of principles on paying tax. The quote goes:

“Investors should be asking Google and other multinationals to adopt ethical principles to guide their tax strategies, considering their impact on society and brand value. Continue reading “Quote of the day – Google’s tax avoidance” →

Norway pledges to introduce public registry on company ownership

We are happy to report on some good news sent to us by Sigrid Klæboe Jacobsen, Director of Tax Justice Network – Norway.

“Today, the Norwegian government today has pledged to introduce a “publicly available, digital registry for information on shareholders of companies”. The Norwegian government will now move forward with work on designing an effective registry that will be accessible and publicly available. Continue reading “Norway pledges to introduce public registry on company ownership” →

Quote of the day: Elizabeth Warren

Elizabeth Warren
via Wikimedia Commons

Regarding corporations paying their way, the trailblazing U.S. senator Elizabeth Warren:

You built a factory out there? Good for you. But I want to be clear. You moved your goods to market on the roads the rest of us paid for. You hired workers the rest of us paid to educate. You were safe in your factory because of police-forces and fire-forces that the rest of us paid for. You didn’t have to worry that marauding bands would come and seize everything at your factory — and hire someone to protect against this — because of the work the rest of us did. Continue reading “Quote of the day: Elizabeth Warren” →

Why it’s so hard to audit hedge funds and private equity

[vc_row][vc_column][vc_column_text]A fascinating little two-minute video from Tax Analysts in the U.S., via this tweet. It’s very clear and simple; it’s less than three minutes long, and it concludes by saying “some businesses are audit-proof.” If you’re busy, the most interesting part of the explanation starts after about 1:10.[/vc_column_text][vc_raw_js]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[/vc_raw_js][vc_column_text]As Tax Analysts note:

“In widely held partnerships, there can be thousands of direct partners, many of which might themselves be partnerships. And because ownership in some partnership is traded, just like ownership of stock, someone can be a partner for just a matter of minutes.
There are partnerships that have several hundred thousand ultimate partners. That’s a lot of tax bills to issue. Chances are: the IRS won’t bother with it.
These partnerships essentially shield the partners’ income and deductions from challenge by the IRS. Any partnership item claimed on the partner’s individual return is essentially untouchable.
You are accountable to the I.R.S. for your income. But the owners of some large businesses – some of the wealthiest people in America – aren’t.”

It’s scary stuff.

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Another reason why corporations may want to be taxed properly

From The Corporation, by Joel Bakan

. . . via top-ranked U.S. tax professor Reuven Avi-Yonah, in a paper entitled Just Say No: Corporate Taxation and Social Responsibility. It is US-focused, but has wide relevance.

This, in fact, can be seen as another justification of imposing tax on the corporation: Rather than bear any social responsibility, the corporation can by paying its taxes shift that responsibility to the state, where it belongs. Continue reading “Another reason why corporations may want to be taxed properly” →

Report: the black hole at the heart of London’s FTSE100

From Christian Aid, a press release:

“The secrecy surrounding thousands of subsidiaries created in tax havens by leading UK companies has created a black hole at the heart of the FTSE100, a new Christian Aid report warns today. Continue reading “Report: the black hole at the heart of London’s FTSE100” →

Thank you!