Fifteen years ago John Christensen and I became the first full tme anti-tax haven campaigners in the world. We had almost no funding, apart from the support of our wives and a single donation. And I think it fair to say that few had a clue what we were trying to achieve, but the Tax Justice Network is testament to our vision.
We have had successes over the years on individual issues and major policies, like country-by-country reporting. And we changed the language used to discuss these places. Most especially, in 2009 I wrote a paper that suggested that it was secrecy that we were really challenging. The term secrecy jurisidiction came into use pretty much as a result, promoted by this blog.
What we have never done until today was shatter open a secrecy jurisidiction. We've come close, forcing tax reforms in Jersey, Guernsey and the Isle of Man and leading campaigns for automatic information exchange from all tax havens.
But this afternoon the UK government has caved in: it will not oppose Margaret Hodge's amendment to new UK anti-money laundering laws requiring that the Overseas Territories (BVI, Cayman, Bermuda, Gibraltar, Anguilla, Montserrat, Bermuda for these purposes) have public registers of the beneficial ownership of companies, whether or not they wish for them.
Their secrecy is shattered as a result.
I sincerely hope that the government will also accept the amendment on Jersey, Guernsey and the Isle of Man as well. Then I will really be celebrating.
Today we began to shatter tax havens. It's taken fifteen years. And it has been worth it.
The world will be fairer.
And more equal.
More taxes owing will be paid.
The rule of law will be upheld.
Democracy will be reinforced.
And crime will be harder to perpetrate.
I might celebrate tonight.
Just one glass, mind you. There are more tax havens to beat as yet.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Well done! Enjoy your celebrations first, think of tomorrow…after you’ve celebrated properly. Prioritise.
Some people out there will be planning and plotting, not celebrating…..meanwhile, nice to have made a breakthrough.At long last.
Well done Richard. It’s been a long haul for you and your fellow campaigners. There are many like me who are grateful for your determination and hard work! You definitely deserve a drink!
The first good news in ages. Well done!
Thanks
Now let’s see what happens on the Crown Dependencies
It is difficult to see how the crown dependencies can avoid being swept along with this. To some extent they retain the veneer of being self-governing, but the implicit threat of Westminster legislation will be hanging in the air.
I am not really sure why Westminster doesn’t introduce a brand new register on which all UK residents are required to provide details on their controlling interest in any company registered in an overseas jurisdiction unless that jurisdiction already has a public register. It might help to improve transparency globally given that most jurisdictions currently don’t have any such register.
Or to make it even more effective how about a change to corporate tax legislation that would mean that no purchase by a UK resident company is tax deductible unless the company (overseas or otherwise) making the sale has put its beneficial ownership details onto that public register.
I think the CDs will all ‘agree’ to do this ‘voluntarily’ now to retain some vestige of pride
Not that they’d know what it means
In the Crown Dependencies there is much rejoicing and hand-rubbing tonight, particularly among the finance sector. They’ve put one over on the arch enemy – that’s the financially active Overseas Territories by the way. As one Labour member said in the chamber earlier today, the dark money in the British financial plumbing system will swiftly begin to flow to the darkest places in the system. That is now the Crown Dependencies (CDs). I really can’t see the current governments in any of the CDs being overwhelmed by fraternal solidarity with their insular cousins and signing up voluntarily. I also can’t see the current UK Government applying any of the levers of influence to make them do it either. Already a labour shortage in Jersey is there? Perhaps mass migration of back office staff from BVI etc will meet this new demand.
You clearly don’t know how these things work
Excellent news! Many congratulations
Good work. I’ve just read the Guardian report but had to check here that it was telling me what I want to hear.
Brilliant news!
Well done all concerned, notably – on this occasion – the indominitable Margaret Hodge.
Indeed
Well done Richard, great news. You certainly deserve at at least one (large) glass of something toothsome. And if the government accept that what applies to the OTs should apply to the CDs………..A whole bottle will be in order.
I don’t do whole bottles (except of St Peter’s bitter) at a time these days
Bravo! A well deserved victory for all the years of relentless campaigning. Maybe a large caffè corretto would be an appropriate celebratory beverage 🙂
🙂
Well done. Thanks for your help on the VAT issue too…
Fantastic news! It is amazing that you have achieved so much from such a small resource base. It gives heart to those of us who can be depressed by the seemingly insurmountable power of the neoliberal establishment to hide its wealth. You deserve a huge hangover and Margaret Hodge herself could enjoy a modest celebration.
Margaret can really take credit for this: she has been tireless
I am a reader of your blog and try to spread your wise words, facts and opinions to my circle of family and friends. I would like to say well done and long may you continue to challenge and expose those tax evaders and organised criminals who wish to profit at the expense of the majority in society.
Thank you
Congratulations to you both. I also rejoice that two ordinary people can start a movement which speaks truth to power and be heard. If this can happen there is hope for the future.
To me that is still the best bit
We had to believe quite hard, and we enjoyed a few moments conversation this afternoon
I admit there is real pleasure in this
But there is ample more to do….
Just heard the news. Well done to everyone who campaigns or simply badgers their local politicians on Tax Justice. This is a great victory.
You deserve massive credit Richard. It is largely your arguments that have been so influential.
I accept that in the early days John and I were key
Now the credit is widely shared
I have not the slightest problem with that
This is excellent news, it really is. It will make a difference in the right direction to the affordability of property in the UK, as well as to the lives of those taxpayers abroad whose wealth has been stolen.
It will make a difference to large numbers of leaseholders in the UK whose landlords appoint managing agents they control and who engage on every conceivable conflict of interest to rip them off, and then escape taxes by sending inflated interest payments on loans to shell companies offshore.
The scale of the abuse in London is simply staggering. I know because I have in a small way come face to face with it.
Many congratulations. This is your doing……!
Not all, not by a long way
But I played a part
Really important news. Congratulations!
I always knew there was something dodgy going on, having heard of bank accounts being set up in Jersey for no apparent reason – no activity took place there by the tobacco company I worked for. But it wasn’t until Essex University 2003 that I learned the truth and the scale of this abuse.
You and John have done amazing work. Congratulations. It was Prem who invited me, and congratulations to him too.
Prem’s the ‘godfather’ of all this
You should all be knighted – the 3 musketeers;o)
I’m not sure any of us would to be ‘Sir’
But Thanks…
I should have said ‘used to work’ – back in the 70s. Nuff about me.
Congratulations a much needed campaign win! Well done Richard!
Thanks
Record employment in Jersey Finance so you deluded to think you are taking the Island down.
I only asked for company ownership on public record
I did not ask to take the Island down
Never thought it possible: well done.
I thought it was
But I am still surprised
While offering fullsome congratulations to you and your team it seems that there are a few Tory MP’s who are almost decent…
I think we will have to nurture them…
Indeed
Peter May says:
“… it seems that there are a few Tory MP’s who are almost decent… ”
Indeed, Peter. No political party has the monopoly on virtue …or indeed, vice.
Every family has its black sheep.
Baaaaa !
The thing about white collar crime is that much of it is not actually against the (letter of the) law, and the perpetrators convince themselves it is victimless.
It isn’t.
Rejoicing in the Crown Dependencies may be short lived.
Congratulations to all who have been involved in clicking back the ratchet even if it is only a small notch, it’s in the right direction for a change.
Congratulations Richard! You deserve a medal for years of dedicated hard work shining a light into what at times must have appeared almost eternal secrecy.
As an infrequent “commentator” but regular reader of on your blog for many years (not to mention the PSG’s own exertions in this connection) we are aware of various “interests” involved … some extending to the highest echelons of the financial services industry, the City of London, the legal system and even government itself.
As some of your contributors have remarked the fight is not over yet – but like the many-headed hydra snake whose heads grew again as they were cut off it was eventually killed by Hercules.
Keep up the good fight!
Oh what nonsense. The UK government has not caved in. You and Christensen are just bystanders in a process that has been ongoing for much longer than you – in particular – have been seeking attention. Have you both impacted bits of that process? Yes. But if you’d remained an accountant the process would be pretty much where it is today. You just wouldn’t be going round calling yourself a professor….
Well, that’s not how others see it
You know, the people who do the thinking, set the ball rolling, and do the leg work by and large are seen as the change makers
Not in your world though. If that’s the way you want it, that’s fine by me
But there are two things you can’t dent. One, it’s happened. Two, I seem to be a professor. A university pays me for being one. Of course they may be unrelated. Except I co-authored the most taught book on the subject….
Tim says:
” [IF] you’d remained an accountant the process would be pretty much where it is today.”
If ‘ifs’ and ‘ans’ were pots and pans there’d be no work for tinkermans.
” You just wouldn’t be going round calling yourself [?] a professor….” Meow !
Why are you so mean spirited? What is your purpose / agenda?
John D says:
“Why are you so mean spirited? What is your purpose / agenda?”
Bad potty training perhaps. ?
Lol
Thank you Richard and your team for all that effort. You and your team have inspired me to return to Switzerland and fight against the abusive system within Switzerland. You, John and your team are a role model: we can change things for the better for global society by exposing abusive practice and more importantly coming up with effective and practicable simple solutions. The latter is the key element for any change!
Thanks
And good luck
You have paid a massive price for your campaigning
Thoughts are with you
Congratulations to you and your colleagues who helped to bring this about. Let’s hope this is just the start.
I hope so
[…] on the British Overseas Territories, but not the Crown Dependencies, is massively significant, as I have already explained. But the question has to be asked, what […]
Congratulations for so many dedicated years of work. The odds of success must have been huge in the beginning.
What is the new number one target on the list
Companies House reform for me
This is an important step but the change is not effective until after the legislation is passed and after it becomes effective. This could potentially be some considerable time after it gets Royal Assent. There is plenty that could happen between now and then that could scupper these potential reforms such as the collapse of the government, the abandonment of the legislation, an inordinate delay to its implementation etc.
Yesterday’s amendment is a positive step in the right direction but it’s not over until the fat lady sings.
Another thing that could scupper these measures would be for the tax havens to achieve full independence from the UK.
And sink like a stone?
They need the UK legal system to be credible
The only thing that could prevent this is the collapse of the government and its non-inclusion in what would be called the ‘wash up’
Though this is good news on tax havens sadly for Scotland these awful Tories seem to think it is still okay to allow SLPs to abuse and taint Scotland with the rife use of SLPs for moneylaundering, our very own treacherous Scottish Tories voted against cleaning up this practice in their own country by voting with Westminster Tories to vote down Alison Thewliss clause to make setting up SLPs more transparent where dirty money is not being laundered by such a simple process of setting up SLPs.
Shocking
Yes, indeed, Elaine, and the Brexit powergrab where “Yes, No, No Reply” is all taken to mean “consent” and the Scottish Tories are quite happy with that. You couldn’t make this up. But it shows how devious the Tories are and I just hope they don’t have some similar piece of double-speak up their sleeves on tax havens.