whitebandradar » Tax Research UK

Don’t tell me large companies don’t tax evade

Corruption, G20, Liechtenstein, Tax evasion Comments Off

Apr 012009

In a move that appeared to be timed to coincide with pressure by President Nicolas Sarkozy for a G20 agreement on curbs for offshore tax havens, the French government has demanded tax fraud investigations into bank accounts allegedly held in Liechtenstein by Michelin, Total and Adidas.

They were apparently on the Liechtenstein list.

They deny it all.

They always do.

But it doesn’t mean they don’t do it.

And it’s why tax havens must go. And why the G20 starting this process is so important.

A Green New Deal is part of the G20 requirement

G20, Green New Deal Comments Off

Apr 012009

From today’s Guardian:

The UK economy faces a triple crunch: a recession triggered by a major credit crisis, the looming reality of runaway climate change and critical resource depletion. As a result we face serious challenges to our livelihoods and increasing threats to our fuel and food security.

Whatever the mistakes that allowed this situation to arise, there is growing international consensus that the best way out is via a green new deal policy package.

The G20 is not just about finance. It has to deliver carbon change too. They can’t say that’s just an issue for Copenhagen issue for later this year.

We won’t have a world without carbon change.That’s why a green new deal is essential.

G20 Voice bloggers meeting

Blogging, G20 1 Response »

Apr 012009

Weird to be in a room of 50 bloggers all of whom are appearing to ignore the speakers put on to brief us and are blogging instead.

Go to G20 Voice to see the feed.

But let’s be clear why this is important for a number of reasons.

The G20 is important – no one can deny it – we need massive reform.

We need a rescue package for the poorest countries of the world. We need reform to bias in their favour.

This is why the tax haven commitments that will be made tomorrow are vital. Remember – for every £1, or euro or dollar or yen that goes into developing countries as aid £8, euro, dollar or yen comes out as an illicit flow.

Tax havens deny it – but the reality is this: tax havens create and reinforce poverty.

Of course they do all the other things I have written about recently. But the development issue is one of life and death, and I have no doubt that this is the biggest issue of all. You’d agree if you live in a developing country. Think about that. It is just an accident of birth if you weren’t.

The G20 – what might happen

G20, Secrecy jurisdictions, Tax Havens 2 Responses »

Apr 012009

The leaked G20 communiqu?© has this to say on tax havens:

[T]o take action to identify non-cooperative jurisdictions, including tax havens, and to stand ready to deploy sanctions to protect our public finances and financial systems. We have today published a list of jurisdictions that have not committed to the international standard for exchange of information on tax. We call on the Global Forum, the FATF, and the [Financial Stability Board] to identify, for the next meeting of our Finance Ministers, jurisdictions not implementing the relevant international standards.

My sources tell me that is not the final wording.

I’m not now expecting a list. I am expecting a commitment to publish a list in six months. I am expecting mention of sanctions. I am expecting a lot of noise around the announcement as to what it means and what might be expected over the next six months.

What does this mean? This, I suggest:

The anti-tax haven initiative is rolling again;
The lesson of publishing a hasty, wrong or too political list has been learned and care is being taken;
This time the list will be more than a list – it has action attached to it;
The opportunity for input and discussion now exists;
Those who want to reform have some opportunity to do so.

That’s all appropriate. Dumping a ‚Äòguilty’ sign on places tomorrow might not help. The creation of more time pressure does help. I can live with it.

I can live with the noises that I’m getting that developing countries are to be provided with access to the process – if it happens.- OECD take note.

I can live with demands for multilateralism – OECD take note. I gather they are being heard.

I accept there is much work to do with countries like China – who has problems with Hong Kong being on any list. I am furious with Germany who for quite bizarre reasons is widely reported to be blocking Austria and Luxembourg from being listed. If true, they need a kick.

But let’s not miss the point. As I’ve said often – this is the opening of a long process. I have not got a commitment to automatic information exchange. I have not got country by country reporting. I have not got a commitment to data on public record. I agree I wanted these – and those were the demands of Put People Fist – I know because I presented them to ministers- But anyone who has ever negotiated knows you pitch high and then compromise.

I won’t accept the compromise for long. I know ministers won’t either. Be under no illusion – their need for cash will drive this process. But I can live with the fact the ball is rolling for now.

Tina, Themba and Tiaa

Development, Economics, Ethics, G20, Secrecy jurisdictions, Tax Havens Comments Off

Apr 012009

According to the Guardian Gordon Brown sepnt much of yesterday talking about what Simon Hoggart calls Themba – ‚ÄòThere Must Be An Alternative’ – which he contrast with Tina – Margaret Thatcher’s famous ‚ÄòThere Is NO Alternative’.

Thatcher was wrong.

Brown is looking in the wrong direction. He’s trying to put Humpty Dumpty back on the City wall again and Humpty Dumpty is broken.

The reality is There Is An Alternative. This blog has been laying it out on tax havens, the City and other related issues.

I’m writing this as I head down to London to begin work on the G20 as a G20 Voice blogger (see logo, right for link). I know in advance the G20 will not deliver all I want. It will not deliver all the world needs. Those who want to retain control of most wealth by an elite who hide behind a veil of secrecy to ensure that their position is subsidised by the middle class and paid for with the lives of the poorest in the world will not release that control in London tomorrow. I know that.

But 8 years ago George Bush tried to kill the anti-tax haven initiative. He almost succeeded. The victory of the G20 as far as I am concerned has already been won – the process is roiling again. OK, not won outright yet, and it will take some time for change to happen, but it has been proven – TIAA – There Is An Alternative. I didn’t doubt it. The world is realising it. That’s massive progress.