Links - Feb 5
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In the country where tax evasion is no crime, Swiss private banks are unrepentant about siphoning off other governments' income
Feb 5 (Guardian) - Konrad Hummler, head of the Swiss private bankers' association, singles out Germany, France and Italy as "illegitimate states", whose citizens had no protection from excessive taxes. "We are so allergic to the Germans... because the Germans have the feeling that citizens belong to the state. There is a very old, very deep worry of the Swiss people against the Germans - it goes back to history, especially the second world war."
How offshore capitalism ate our economies - and itself
Feb 5 (Guardian) - The author William Brittain-Catlin looks at the history of offshore and how it helped spawn the current financial and economic crisis.
Taxwash
You've heard plenty of "greenwash" from companies declaring environmentally friendly credentials, often on the back of questionable third party endorsements. But just like greenwash, the official endorsement doesn't tell the whole story of the company's record. Unless readers can think of a better term, let's call it "taxwash"
Backdoor fictions
Feb 5 (Guardian) – Another rebuttal of the bogus “tax incidence” argument. Some people argue that avoiding corporate taxes doesn't really count, because companies aren't real people. It is a seductive but misleading argument. First, and most obviously, not all company shareholders are UK tax resident. If there were no UK corporation tax, other taxes would increase to compensate. Does avoidance bring backdoor benefits? Through, say, pension funds? This is a stretch to believe. For most people, this simply isn't the case
Clegg tackles Brown over tax gap investigation
Feb 5 (Guardian) – UK opposition Liberal Democrat leader Nick Clegg raised the Guardian's tax investigation at prime minister's question time this afternoon - and got an answer as incomprehensible as the subject itself.
Brown “backs” international action on tax avoiders
Feb 5 (Guardian) – Weasel words from Gordon Brown "I believe it is possible to get an international agreement for the exchange of information in relation to tax cases . . . That would be the way that we could move forward our proposals, that we could have both the exchange of information on tax and clamp down on these tax evaders." No 10 said it had been engaged in a "twin track" approach for some time, working with the EU and "leading the way" in efforts within the OECD. It said UK officials had persuaded Jersey, Guernsey, the Isle of Man, Bermuda and the British Virgin Islands to share information. Deeply deceptive: working within the EU = sabotaging the EU’s efforts; sharing = pretending to share; OECD model is fatally flawed.
The transfer of Walkers crisps to a foreign subsidiary has cost UK millions
Feb 5 (Guardian) - A curious thing happened to the UK profits of Walkers Snack Foods in 1999. They fell off a cliff, as did the UK tax bill that went with them. Walkers had been "restructured" by its owners, the US transnational giant, Pepsico. This shifted much of its profits to a tax haven in Switzerland. Pepsico became one of the earliest adopters of the sort of business restructuring that Revenue sources now describe as the biggest threat to the UK tax base.
Volcker Suggests Ways to Refine Bank Regulations
Feb 4 (NYT) - Paul A. Volcker, who is leading President Obama’s Economic Recovery Advisory Board, called on Wednesday for fundamental changes in the regulation of financial instruments and institutions. In testimony Volcker called called for the registration of hedge and equity funds of any substantial size, as well as periodic reporting and disclosure from such firms. For banks and other firms that are large enough to shake the entire financial system if they fail, he called for “particularly close regulation and supervision, meeting high and common international standards.”
Luxembourg Prepared To Negotiate On Banking Secrecy
Feb 4 (Tax news) - Following recent proposals by the European Commission to tighten rules on banking secrecy, Luxembourg’s Prime Minister Jean-Claude Juncker has said he is prepared to negotiate. The EU has presented proposals to tighten European rules on banking secrecy for non-residents; if adopted, Luxembourg, Austria and Belgium will no longer be able to cite banking secrecy as a reason to refuse information exchange with another European country. The new proposal is the first time that Brussels has directly targeted banking secrecy.
EU tax haven demands fall flat on Austria
The Austrian finance ministry is cautiously negative about the European Commission’s (EC) call for an end to banking secrecy. Finance ministry spokesman Harald Waiglein said a solution had to ensure Austria would not be put at a competitive disadvantage vis-à-vis non-EU member states Switzerland and Liechtenstein. "We are ready to exchange information, but only when everyone agrees to do so." He said Austrian officials were ready to talk with the EC about banking secrecy.
In the country where tax evasion is no crime, Swiss private banks are unrepentant about siphoning off other governments' income
Feb 5 (Guardian) - Konrad Hummler, head of the Swiss private bankers' association, singles out Germany, France and Italy as "illegitimate states", whose citizens had no protection from excessive taxes. "We are so allergic to the Germans... because the Germans have the feeling that citizens belong to the state. There is a very old, very deep worry of the Swiss people against the Germans - it goes back to history, especially the second world war."
How offshore capitalism ate our economies - and itself
Feb 5 (Guardian) - The author William Brittain-Catlin looks at the history of offshore and how it helped spawn the current financial and economic crisis.
Taxwash
You've heard plenty of "greenwash" from companies declaring environmentally friendly credentials, often on the back of questionable third party endorsements. But just like greenwash, the official endorsement doesn't tell the whole story of the company's record. Unless readers can think of a better term, let's call it "taxwash"
Backdoor fictions
Feb 5 (Guardian) – Another rebuttal of the bogus “tax incidence” argument. Some people argue that avoiding corporate taxes doesn't really count, because companies aren't real people. It is a seductive but misleading argument. First, and most obviously, not all company shareholders are UK tax resident. If there were no UK corporation tax, other taxes would increase to compensate. Does avoidance bring backdoor benefits? Through, say, pension funds? This is a stretch to believe. For most people, this simply isn't the case
Clegg tackles Brown over tax gap investigation
Feb 5 (Guardian) – UK opposition Liberal Democrat leader Nick Clegg raised the Guardian's tax investigation at prime minister's question time this afternoon - and got an answer as incomprehensible as the subject itself.
Brown “backs” international action on tax avoiders
Feb 5 (Guardian) – Weasel words from Gordon Brown "I believe it is possible to get an international agreement for the exchange of information in relation to tax cases . . . That would be the way that we could move forward our proposals, that we could have both the exchange of information on tax and clamp down on these tax evaders." No 10 said it had been engaged in a "twin track" approach for some time, working with the EU and "leading the way" in efforts within the OECD. It said UK officials had persuaded Jersey, Guernsey, the Isle of Man, Bermuda and the British Virgin Islands to share information. Deeply deceptive: working within the EU = sabotaging the EU’s efforts; sharing = pretending to share; OECD model is fatally flawed.
The transfer of Walkers crisps to a foreign subsidiary has cost UK millions
Feb 5 (Guardian) - A curious thing happened to the UK profits of Walkers Snack Foods in 1999. They fell off a cliff, as did the UK tax bill that went with them. Walkers had been "restructured" by its owners, the US transnational giant, Pepsico. This shifted much of its profits to a tax haven in Switzerland. Pepsico became one of the earliest adopters of the sort of business restructuring that Revenue sources now describe as the biggest threat to the UK tax base.
Volcker Suggests Ways to Refine Bank Regulations
Feb 4 (NYT) - Paul A. Volcker, who is leading President Obama’s Economic Recovery Advisory Board, called on Wednesday for fundamental changes in the regulation of financial instruments and institutions. In testimony Volcker called called for the registration of hedge and equity funds of any substantial size, as well as periodic reporting and disclosure from such firms. For banks and other firms that are large enough to shake the entire financial system if they fail, he called for “particularly close regulation and supervision, meeting high and common international standards.”
Luxembourg Prepared To Negotiate On Banking Secrecy
Feb 4 (Tax news) - Following recent proposals by the European Commission to tighten rules on banking secrecy, Luxembourg’s Prime Minister Jean-Claude Juncker has said he is prepared to negotiate. The EU has presented proposals to tighten European rules on banking secrecy for non-residents; if adopted, Luxembourg, Austria and Belgium will no longer be able to cite banking secrecy as a reason to refuse information exchange with another European country. The new proposal is the first time that Brussels has directly targeted banking secrecy.
EU tax haven demands fall flat on Austria
The Austrian finance ministry is cautiously negative about the European Commission’s (EC) call for an end to banking secrecy. Finance ministry spokesman Harald Waiglein said a solution had to ensure Austria would not be put at a competitive disadvantage vis-à-vis non-EU member states Switzerland and Liechtenstein. "We are ready to exchange information, but only when everyone agrees to do so." He said Austrian officials were ready to talk with the EC about banking secrecy.
posted by TJN at 12:55 am
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