The Times admits secrecy jurisdictions undermine deomcracy

Posted on

Not time for Tobin -Times Online .

I'm sure the Times did not want their rather pathetic attack ion the Tobin Tax to admit what it actually did - that tax havens / secrecy jurisdiction undermine democracy and the rule of law in the world's major states for the sole benefit of bankers and the wealthy, but they did.

They said:

The main objection to a Tobin tax, however, is that it will not work. ... Perhaps all the main financial centres would sign up to the tax. But that still leaves the offshore financial centres. It is difficult to see what possible incentive they would have to implement a tax when it would plainly be in their financial interest to attract business from international banks.

This is the perverted logic of neo-liberalism, that we let the 20 or so institutions (and that is about the real sum total of banks involved in this equation) split themselves across jurisdictions and so undermine the law.

Well, we have to stop that.

And I assure you that is possible. The answer would be simple: any bank doing this would have to lose its banking licence in London ans elsewhere. Of course they should be at liberty to trade in tax havens / secrecy jurisdictions, but not here as well, and not if they are not tax compliant.

Tax compliance is seeking to pay the right amount of tax (but no more) in the right place at the right time where right means that the economic substance of the transactions undertaken coincides with the place and form in which they are reported for taxation purposes.

This is what the new bank code on taxation demands.

It is what we expect. It's time the world woke up and realised it is what must be delivered.