John McDonnell MP has written this in the Guardian this morning:
There is no reason why the UK cannot use its relationship with these tax havens to force them to stop dragging their feet. At the very least, there should be strictly enforced minimum standards of transparency, including the publication of public records of companies' accounts, directors, major shareholders and all beneficial ownership of trusts. Without these things, how can we possibly have faith that wealthy people and corporations are not receiving preferential treatment compared with those of us who fill in tax returns or have it deducted automatically?
Labour has already called for tax havens to be blacklisted unless they produce a public register of company owners and sanctioned if they fall foul. And it is surely time that the chancellor listened to our calls to end the unjustifiable cuts to staffing numbers at HM Revenue and Customs, as they cannot be put in a position where their hands are being tied.
I agree, not for any party political reason, because I have no such affiliation, but because this makes complete sense and accords with what I have always argued.
These are the most basic responses required to the Panama Papers.
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Not sure if this is the right forum to air it but, I read last night that the Panama papers have virtually obscured a revalation from wikileaks that Paul Mason picked up on. Apparently two high ranking members of the IMF were caught on tape talking about staging a ‘Greek event’ at around the time of Brexit 25th May to destabilise Europe and make Germany tow the line. Also consequently, to increase their power in Europe.
Another investigation for you perhaps Richard?
One for Paul, I think
I’ve had a sneaking regard for John McDonnell for some time.
He 100% nails it in this piece.
Given the poor record of HMRC with the Switzerland CDs – & their failure to get any significant result in terms of recovered tax, & given that the tories are busy emsculating HMRC, I take a rather pessimistic view of any HMRC activity. Sure there will be some token small fry that will fill the sunday papers and tabloids – but real action against tough nuts? it ain’t going to happen. I do hope I’m proved wrong.
I hope so too
Sadly Mike, as an employee of an ever shrinking HMRC, whose frontline staff battle not just against tax evaders themselves, but a government that despises civil servants, and a Board that’s more interested in ‘Corporate Communications’, ‘Transformation’ and ‘Change Management’ than getting in tax, I have to agree with you.
And once shedloads of experienced people leave because they are not going to have their quality of life ruined by ridiculous journeys to the ‘regional centres’, we’ll have even fewer people left to take on the army of tax lawyers and accountants that act on behalf of the people and organisations that use tax havens.
There’s no real political will in this government to stop this, as we’ve seen from the news that Cameron took the leading role in blocking EU attempts in cracking down on the type of trusts used for avoidance and evasion revealed by the Panama revelations.
And HMRC doesn’t have, let alone in the future, have the resources to deal with this.
Issues that I will keep trying to highlight for as long as I can
Richard, what are your thoughts on the fourth statement?
“There are no offshore funds/trusts which the prime minister, Mrs Cameron or their children will benefit from in future.”
I have no idea how he knows that to be true
There is a big problem with this statement (which may be true). The problem is that it could be an admission that indeed Camoron knew of the existence of such funds/trusts but did not benefit from them. But, if he did know of their existence he will have had a very good idea indeed how they were administered – & as the leaks have shown – the funds were not administered in the BVI but in the UK. Camoron was PM when his father was alive & must have known how the funds functioned even if only in broad outline. Thus he has a prima facie case to answer of knowing of a wrong doing (long term tax dodging) and doing nothing about it (something = 2000 – “dad I’m an MP you have to stop”, “dad – I’m reporting you to HMRC” etc etc). Given the above, the only conclusion that can be drawen is that Camoron knowingly shielded a serial & long term tax avoider, whilst PM. He should be impeached & the Labour party should move a motion for his impeachment.
Cameron delenda est.
His official public life as Prime Minister will not last much longer and so his reference to the “the future” is a very qualified statement because he knows he will be out of the spotlight quite soon. A typical politician’s answer to a question he would rather ignore completely.
Perhaps the UK Government could establish a Tax Truth Commission and offer an amnesty to all who came forward and explain their past offshore financial actions and pay what tax should have been due. Those who fail to take part could then be investigated and dealt with more harshly.
If there has been no wrong doing by the super rich they should not fear the publicity.
Oh no: no amnesties
Why let them off?
An amnesty from legal action only would be OK, as it avoids the cost and time involved in the courts – as long as they pay everything that is due (plus interest and a token slap on the wrist fee).
Emphatrically not
Once given the expectation of future amnesties is created and abuse is encouraged
It looks like “hypocrisy” is going to become a well used word in the tax haven lexicon over the next few weeks!
Good to see plenty of naming, shaming and hopefully a change of moral conscience (but probably not much?)
http://www.thecanary.co/2016/04/05/paying-tax-hypocrisy-guardian-government/
Tim Worstall – finance journalist!!!?
That’s pushing credibility!
If this country abolished inheritance tax there would be significantly less evasion. The rich hide their money offshore to safeguard it for future generations. I don’t mind how much the government wants to steal off people while alive, but inheritance tax is a real incentive for the better off to hide assets so they’re not appropriated on death.
Utterly ridiculous
Let’s solve the problem of taxing wealth by abolishing tax on wealth
Do you really think we are gullible enough to fall for that?
what about ” BLIND TRUSTS “