Who is in the British Virgin Islands?
And who is in Panama?
Why, is the fair question to ask?
Panama has a local market that may, just about, justify a presence.
But BVI? It has a population of 28,000 right now, one fifth of that of the Isle of Wight where not a single one of these firms is present.
I think they have some explaining to do given that we know there is nothing of any substance, barring tax avoidance, corproate law abuse and the provision of secrecy going on there.
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As you are aware the Guardian has its teeth into this one today “Panama Papers: global reaction to huge leak of offshore tax files” [1]
“IMF estimates that developing countries lose out on $200bn a year in avoided corporate tax”. [2]
Some consequences of poor tax revenue streams. In Malawi for example there is 1 Doctor per 50,000 of population. In the UK it is c. 1:232, from the GMC’s data [3]. And not forgetting 660,000 nursing staff (2010 data) [4].
[1] http://www.theguardian.com/news/live/2016/apr/04/panama-papers-global-reaction-to-huge-leak-of-offshore-tax-files-live
[2] https://www.actionaid.org.uk/campaign/campaign-to-make-tax-fair/take-action-to-make-tax-fair-everywhere
[3] http://www.gmc-uk.org/doctors/register/search_stats.asp
[4] http://www.kingsfund.org.uk/time-to-think-differently/trends/professional-attitudes-and-workforce/non-medical-and-nursing-workforce
“the Guardian has its teeth into this one today”
Maybe. They have a few articles and a lot of fanfare, but it seems to me they are being very selective in pointing the finger. Putin (tick); Gaddafi, Assad, et al (tick); Naughty Iceland (the only country to jail a banker and protect its citizens – something must be done!) (tick).
I wait with impatience (but not much hope) for the exposure of some big western politicians and commercial organisations. I wonder how the proprietors of the MSM are feeling today? Probably OK since they’ve had a year to mull over the situation.
There are days of this to come
Stuart Gulliver, chief exec of HSBC said of his personal financial arrangements that:
“The Swiss account was set up in 1998 in the name of a Panamanian company for reasons of confidentiality and this had no other purpose and provided no tax or other advantage.”
They are unquestionably ‘all in it together’.
Show me the money.
They follow the money
I recall John Dillinger in the 1920/1930s being asked why he robbed banks & saying: because that is where the money is – the insultcons (Insult & con-merchants)are there ‘cos that is where their clients are – given the complexity of the structures one needs probably fairly nible accounting and such like, step forward the insultcons.
If we set inheritance tax and corporation tax at the correct level, then offshore business from UK residents for these accountancy partnerships would dry up. It would also lead to massive staff reductions and a pool of numerate staff entering the labour market, from whence they could apply for the vacancies currently advertised by HMRC
And what is that correct level?
Panama’s GDP gives enough substance for each of the big 4 to be here. I personally know most of the current Big 4 partners and I can attest to the fact that their audit business has nothing to do with what local lawyers like to call “offshore” business….
Respectfully, I doubt that
Is there any basis for your doubt?
Yes
There is a massive offshore sector and the Big 4 tend to follow that in small states – as my research has shown
Ill be very interested to see that research since I do not think it relates to Panama.
No, it relates to the Big 4
Richard , Richard, Richard. Will you ever learn. You are just picking on these firms and people. Everyone else KNOWS why they are there. THE BEACHES silly!!!