2011 February » Tax Research UK

EU Directive update

EU STD, Europe, Switzerland, Tax evasion 2 Responses »

Feb 182011

A German magazine, NZZ (not available on line) ha noted that Austria is now holding out against reform of the European Union Savings Tax Directive. The reason? The deal being done between the UK, Germany and Switzerland on withholding taxes that preserves bank secrecy in Switzerland.

This is, of course, convenient politicking by Austria, which has been no firmed of the European Union Savings Tax Directive. But it is none the less significant. Why should the Swiss get such absurd and favourable treatment that only facilitates tax evasion?

An interview with Nick Shaxson – in Norway

Secrecy jurisdictions, Tax Havens 1 Response »

Feb 182011

This video has been made by Publish What You Pay in Norway and features Nick Shaxson, author of Treasure Islands:

It’s time to think

ConDems 5 Responses »

Feb 172011

I am pleased the government has retreated on the sale of forests.

I note with interest the comment made by a Downing Street adviser that:

We just did not think

Well it is time to think.

Time to think about the impact of reform on the NHS – which will be destroyed by Lansley’s proposals.

Time to think about one million young unemployed people.

Time to think about the voluntary sector – where someone told me yesterday the situation is not just bad, but dire because of cuts in local authority support, and few organisations have owned up to it yet.

Time to think about real banking reform.

Time to think about an alternative economic policy.

But will they do it?

Or will they just not think?

In praise of tax

Ireland, Tax avoidance, Tax Havens, Tax justice 1 Response »

Feb 172011

An editorial in London’s only evening newspaper, the London Evening Standard, says today:

In praise of tax

Paying tax is a good way for individuals and companies to contribute to the society in which they operate. So why is Google choosing to base itself in low tax Ireland rather than in the UK, where it has far more workers? We should be told.

Hard to argue with that.

And a very welcome sign of the times that such comment is now becoming commonplace.

Jersey is celebrating losing on zero /ten

Jersey 8 Responses »

Feb 172011

I frequently find tax haven behaviour bizarre at best. The mindset that can believe that offshore is a reality is one I admit I do have difficulty understanding.

As example of its weird thinking there was an editorial in the Jersey Evening post yesterday that sung the praises of the States of Jersey and the political hierarchy for their success in securing victory for zero / ten taxation.

It takes extraordinary logic to think that Jersey won on this issue. From 2004 to 2011 Jersey persisted in arguing that its deemed distribution rules – an integral part of zero / ten, designed to ensure that the tax haven ring fence denying tax haven priveliges to its domestic popuation, were legitimate. It wriggled, argued, spent a great deal of money, consulted widely, and stuck to its guns up to presentations made at the EU last autumn.

And the EU said it was wrong. However Jersey turned it was wrong they said; the rules were abusive.

Now Jersey has given in and is abandoning those rules, accepting an assurance from its Treasury Minister that it will only cost £10 million or so a year (even though very recently a States member was assured by the same Treasury Minister that they actually had no idea of an accurate estimate of the sum involved) and has declared that a victory.

Well, all right then. If being proven wrong with a resulting considerable loss in tax, which all admit will impact significantly on the ordinary people of Jersey is a victory then I concede it is – but only because the criteria used to say so is that this is a victory for the finance industry in Jersey. And that’s very, very different from being a victory for Jersey itself.

I also suspect the story has yet to reach a conclusion. I await the anti-avoidance rules that will, no doubt be coming soon to limit the loss to Jersey from this retreat. What chance is there that the ring fence will reappear then? After all, Jersey got the victory it declared yesterday in June 2003, but then introduced the deemed distribution rules when it realised it could not afford zero / ten. Will we now see this happen all over again?

UK Uncut – how to do a bail in

Tax justice Comments Off

Feb 162011

There is no doubt UK Uncut has caught the mood of many when it comes to the cuts – which they know and I know are wholly unnecessary.

And there is also no doubt at all that they are setting a standard for civil protest that is targeted, appropriate and well, civil.

Watch this:

Unemployment gets worse

Economics 7 Responses »

Feb 162011

As the BBC has reported:

UK unemployment rose by 44,000 to almost 2.5 million in the three months to the end of December, the Office for National Statistics (ONS) has said.

Youth unemployment rose to a fresh record high, with more than one in five 16 to 24-year-olds out of work after a rise of 66,000 to 965,000 without jobs.

The unemployment rate is now 7.9%, with youth unemployment running at 20.5%.

The number of people claiming Jobseeker’s Allowance increased by 2,400 last month to 1.46 million.

The number of people in part-time work because they could not find a full-time job rose by 44,000 to 1.19 million, another high since records began in 1992.

Long-term unemployment also deteriorated, with 17,000 more people out of work for more than a year, to a total of 833,000.

What can one say, except it’s only going to get worse?

It will until an alternative is adopted.

That alternative is possible. None of this unemployment is necessary. And those young people need not have blighted hopes. That’s what’s so depressing about all this.

Egyptians with assets frozen in Switzerland

Corruption, Switzerland 5 Responses »

Feb 162011

One has to give credit where it is due, and as TJN has noted, a Swiss government web page gives the actual names of those who are subject to asset freezes by Switzerland.

There is data for C?¥te d’Ivoire, Egypt and Tunisia – updated on Feb 4, 2011 and Jan 28, 2011

With regard to Egypt these names are mentioned:

Hosni Mubarak
Suzanne Thabet, eÃÅpouse de Hosni Mubarak
Alaa Mubarak, fils de Hosni Mubarak
Heidi Rasekh, eÃÅpouse de Alaa Mubarak
Gamal Mubarak, fils de Hosni Mubarak
Chadiga el Gammal, eÃÅpouse de Gamal Mubarak
Mounir Thabet, freÃÄre de Suzanne Thabet
Ahmed Alaa El Din Amin El-Maghrabi, ancien Ministre de l’Habitat, des Services et du DeÃÅveloppement Urbain
Mohamed Zoheir Mohamed Wahid Garana, ancien Ministre du Tourisme
Habib Ibrahim El Adli, ancien Ministre de l’InteÃÅrieur
Ahmed Ezz, ancien SecreÃÅtaire de l’Organisation au Partie national deÃÅmocratique
Rachid Mohamed Rachid, ancien Ministre du Commerce et de l’Industrie

Now why can’t the Uk do the same?

The hidden problems in the Isle of Man budget

Isle of Man 1 Response »

Feb 162011

Manx Radio hints this morning at the spin in the Isle of Man’s budget, saying:

The 2011 Manx budget has outlined the way ahead as the Isle of Man continues to address its considerable economic challenges.

But much of the detail is still to be worked through, including where and how government departments will come up with the savings they are being asked to make.

Rushen MHK Juan Watterson says while the news is good on reducing the shortfall left by the loss of the VAT millions, the public sector pensions liability remains an acute problem.

And that wasn’t addressed in Treasury Minister Anne Craine’s budget speech

As ever, the devil’s in the detail.

The spread sheet works.

No one has worked out how to translate it into action yet.

Which all sounds rather like the ConDems’ plans for the UK.