Spot the trend:
- G20
- ‘Maundy Thursday letters’ to Crown Dependencies and British Overseas Territories
- Turks & Caicos taken over
- Cayman told to tax in return for permission to borrow
- Isle of Man told VAT subsidy to be reduced
- UK refuses to support ‘zero/ten’ regimes in the Crown Dependencies
These are not unconnected events. They show that the tax havens have always, and only, existed with tacit political support.
And it seems very likely that London has now withdrawn that support.
This is the really big news.
How big? well my blog as already (and it’s only 6.50pm) had its third biggest ever day of traffic. It’s a crude guide — but it certainly says something is up — and people are worried.
They should be. The next step is what to do about it. Some may think my offer if help is not serious — but it is. I have proven I really o understand this issue. Now it’s time to get these places out of the mess they’re in. And I’m keen to see them do that.
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”They should be. The next step is what to do about it. Some may think my offer if help is not serious — but it is. I have proven I really o understand this issue. Now it’s time to get these places out of the mess they’re in. And I’m keen to see them do that.”
Richard
Your ‘offer’ is cynical and disingenuous.Your dislike for jurisdictions such as IOM, Guernsey ,Jersey et al is evident throughout your blog. I challenge you to offer up your proposals – in outline only – after all on an earlier posting today you said ” if the fee is right”.
Richard
Are you able to provide a brief synopsis on what you recommend the CD’s should do?
Eugene
My offer is neither cynical or disingenuous. I worked for Jersey before – and would do so again.
But yes, expertise does have a price
Richard
no Graeme – unlikely to be forthcoming
what a pity the local Economy/Tax Gurus such as Le Seur and Ozouf didn’t bother to attend the recent Tax for Justice meeting – had they done so they might have heard some very academic and reasoned arguments; had they done so Jersey might not be in the huge mess it is in now.
… truth is we have too many “small island politicians” – big fish in a very small pond – who think they are enormously clever and will not listen to advice.
Broadly, I think you’re correct, although viewing things from a Right wing perspective, I inevitably interpret the UK’s reasoning differently: I regard this chain of events as a cynical abuse of power designed to hamper international tax competition. I would tweak your list slightly, though, removing the suspension of government in Turks & Caicos (I don’t think this was intended as a warning shot across the bows of other jurisdictions, but a necessary move to terminate a genuinely corrupt regime) and adding the discontinuation of reciprocal health agreements with the Crown Dependencies (notwithstanding that Jersey apparently conducted itself dishonestly, allegedly charging the UK £3.7 million for £300,000 worth of treatment) and the seizure of £552 million of assets belonging to Kaupthing Singer & Friedlander (Isle of Man).
It is all politics. For example, Gordon Brown recently stood up and announced £1bn funds had been repatriated to the UK exchequer from Liechtenstein, under the “disclosure facility”….which isnt yet active. What chance reasoned debate in the face of such blatant untruths. So Richard, tell me one thing; when you close down the CD’s and all the “tax evading etc etc trusts etc etc” go to Switzerland what will you have achieved?
Henry
Let’s stop the crap, shall we
He did not say that
Lying does not help your case
Brown didn’t lie: you did
Richard
Richard
I do not take kindly to being called a liar. And the language of your response is offensive.
On 13 October the PM said “the new rules that have been agreed about the use and the regulation of tax havens around the world have already released £1 billion from Lichtenstein back to the British exchequer.” As you do doubt wont believe me read the transcript onhttp://www.number10.gov.uk/Page20937
I expect you to apologise and just for once admit you are incorrect.
Henry
henry
I apologise
He did not say that
Thanks for drawing such good news to my attention
Now will you apologise for doubting the truth of what he said? Because you have no proof at all he’s wrong – such disclosures may have been made for all you know
Will you admit you’re wrong?
Richard
Richard,
You are still staying “he did not say that” ?! I assume you took as much care in responding as you did in your first reply.
So to be sure about what you are saying – we need to believe every single word a politician utters. There is plenty of proof it is wrong, or at the very best stretching the truth. Take a look at the terms of the LDF; the regulations aren’t even in place yet. So it is obviously not correct, the £1bn was the target quoted only a few weeks ago. You doubted it as well, hence the vitriol in your initial reply.
My point is statements such as these, and tabloid television such as Panorama, serve only to detract from the sensible debate there is to be had about financial regulation in all territories, onshore and offshore. Dont add to it – it does you no credit.
Henry
Henry
I had the grace to apologise. I accepted an error. You have proved I am human
And I admit I’m surprised that £1 billion has been recovered as yet – I’ll be honest
But I also know that people are seeking to make disclosure as fast as they can – so this may not be impossible
I’ll give the benefit of the doubt. For you there is not such thing. Nor humanity. Nor humour. Nor an understanding that Panorama worked stunningly well with a lay audience. Nor any perception that the last people on earth anyone wants to hear on regulation is a financier – especially an offshore one
No wonder you’re an angry man – your whole world view is being challenged isn’t it – and very successfully. Must be a little uncomfortable I should think.
Don’t ask for sympathy
Richard