It is, I think, widely agreed that it is a scandal that fewer prosecutions have resulted from the HSBC leaks than anyone could reasonably have expected. But as my friend and co-author Prof Ronen Palan has pointed out in a calm analysis on The Conversation web site, there is one person facing prosecution:
Last but not least, as in previous cases of such leaks, the person most likely to suffer from the leak is the whistleblower himself. Hervé Falciani, the former HSBC systems engineer who revealed the information. He has been on the run from Swiss authorities since breaking Swiss bank secrecy laws and is living under protection.
So, just as Antoine Deltour is now being prosecuted in Luxembourg at the behest of PWC so is the HSBC whistleblower having to live a life under threat.
If there's a lesson that comes out of this it is that a person revealing tax abuse has to be offered immunity from prosecution in international law. Justice demands it. In these cases, quite literally tax justice demands it.
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For once I completely agree with you, but this does open a can of worms concerning data protection and innocent people being caught up with the guilty. I think this guys problem stemmed from giving data to the press and not the authorities (for whatever reason), is there not any whistle blower protocol within financial services? Maybe employees should be told how to legally share their concerns with the authorities (anonymously) as part of financial services qualifications/training.
The HSBC information went to authorities years ago
I agree PWC data went to the press
But it was of massive social value
PWC are guilty of a human rights crime by prosecuting
“PWC are guilty of a human rights crime by prosecuting”
You know perfectly well that PWC has no power to prosecute.
They have sought the prosecution
I can’t help wondering how prosecutions of whistle blowers might be funded should the dodgers get their way. Presumably by those still on PAYE.
I appreciate this may be seen as an unhelpful and speculative aside, but I am a former financial journalist (hello Richard!) who has been writing about intelligence matters for several years now, and Hervé Falciani’s claims to have been recruited by Mossad, while working for HSBC, appear credible to me. The story he relates as to his recruitment and briefing by Mossad in third-party countries fits the known MO for Mossad agent-handling since the days of Mordechai Vananu. Whether Falciani was recruited or not, by Mossad or any other intelligence agency, the point still stands: off-shore tax evasion is not just a matter of social justice and general economics, but a national security issue too. Individuals who illegally stash money off-shore are vulnerable to blackmail and manipulation, and often, by dint of their wealth alone, they belong to the sort of demographic which foreign agencies seek to manipulate. President Richard Nixon, for example, had millions in a Swiss bank account; a secret which is often claimed to explain his pliant attitudes towards both J Edgar Hoover and fraudsters like Charles Rebozo. One wonders, for example, to what extent Blair is led (and has been led) by similar concerns. In this respect these tax schemes should be a worry for the Security Service as well as HMRC.
Those of us who have been watching the run of the 1982 Smiley’s People on BBC4 and who recall that period and before would not be at all surprised by any of this.
A definite case of shooting the messnger.
Wasn’t there a whistle blower at HMRC not that long ago who was also persecuted/disciplined, Richard?
And didn’t you once (or perhaps it was just discussed on your blog)try to find out how many people within (or presumably ex) HMRC are subject to gagging orders?
As an aside, interesting, that we should be talking about this on the day that whistleblowing within the NHS is also in the news and the plight of many of those seeking to act in the public interest is laid bare.
Osita Mba was persecuted in my view by HMRC
I never got further details
This story appeared on the BBC website years ago – along with at the time confirmation the information was passed over.
In the BBC’s Mr Preston Speak – it is “Striking” that the amount of actually recoverd tax is so low – 6000 people – 135Mil from 1,000 individuals – that works out to £135,000 each from those 1,000 [NOTE, not from the 6,000 total]
That figure speaks for itself.
Indeed – of course this is the tax due plus fines on any interest not declared. Quite a lot really.
Richard – Three points
1/ Is there any reason these guy have not withdrawn their money (in cash) and taken it in a suit case to a country without a ‘tax agreement in Europe (like Panama, Dubai, Singapore etc. etc).
2/ As I understand it the Swiss account disclosure agreement only covers individual’s not company accounts so guess what you do?.
3/ What about all the other banks in Switzerland who didn’t have their account information stolen?
All good points
In fairness gains won on the EU Savings Directive and via OECD are now closing some of these loopholes now thanks to extensive activist lobbying
A whistle blower in the financial industry faces vilification and ruin and yet the Government seems keen to get staff to whistle blow in the NHS by offering them more protection if they do!
So its OK to whistle blow in the public sector (especially if you want to privatise it) but not OK in the private sector who are maximising the money of the wealthy. Hmmmmm.
What’s good for the goose is good for the gander; whistle blowing that throws the light on abuse in either the private or public sector should get the same treatment.