Links Jan 20

Corporate anonymity - Ultimate Privilege The Economist
Jan 20 - A very important report. The piece points out the deficiencies in measures for increasing transparency, especially within the Financial Action Task Force (FATF), the world’s main anti-money-laundering body. "Anthea Lawson of Global Witness ... says that the result is 'carte blanche for tax-evaders, organised crime and the corrupt to carry on business as usual.'” Hat tip: Heather Lowe.

See also:
Incorporation with limited liability is a privilege. It should not include anonymity Tax Research UK
Jan 20 - Richard Murphy points out: " I am convinced legal limited liability is a privilege - after all, if people sign a piece of paper to form a company they no longer have to accept full responsibility for their debts ... like all responsibilities, this one comes at a price. The price is ... to disclose who really owns the company and who really runs it, as well as to say what you do i.e. to put true and fair accounts on public record."

Corporations, Taxes and Responsible Investors Huffington Post
Jan 19 - A piece by TJN Senior Adviser Rev. Séamus P. Finn, OMI. "Shareholders, and especially faith based and socially responsible investors, will need to consider how to engage companies that are identified as the most aggressive in developing legal strategies to either avoid or evade the payment of approved taxes."

Left Behind by the G20? How inequality and environmental degradation threaten to exclude poor people from the benefits of economic growth Oxfam
Jan 19 - Oxfam’s new report Left behind by the G20 reveals that it is falling behind on inequality, and inclusive and sustainable growth, with inequality having increased in 14 of the G20 countries since 1990 as economic growth has too often failed to benefit poor people.

Nepal: Compliance burden fuels tax evasion trend The Himalayan Times
Jan 20 - "Post-1990 movement, the private sector has come forward very actively and in many sectors led alone, without government’s support, but post-2007 movement, the private sector has been in news more all for the wrong reasons. “It’s a trend,” according to finance secretary Krishnahari Baskota, 'though such act will not benefit them in a long run.' "

USA: What the President's Council on Jobs and Competitiveness Got Wrong about Corporate Taxes Citizens for Tax Justice
Jan 18 - "President Obama’s jobs council has released a report full of recommendations, including somewhat misguided points on the federal corporate income tax. The report rightly points out that the corporate income tax is full of loopholes that should be closed, but fails to call for a reform that actually raises revenue to support under-funded public services and investments ..."

USA: IRS Called Easy on Criminal Tax Evaders in Watchdog’s Critique Bloomberg
Jan 20 - "Criminal tax evaders have an easier time coming clean with the Internal Revenue Service than those who didn’t intend to hide money from U.S. authorities, according to Nina Olson, the National Taxpayer Advocate."

Canada: Tax-dodging guru convicted on evasion charges CTV News
Jan 20 - "A B.C. man who earned a solid six-figure income teaching would-be tax dodgers a bogus scheme to evade the Canada Revenue Agency has been found guilty of tax evasion and counselling to commit fraud ... an advocate of the legally flawed "natural person" theory, which suggests that anyone can get out of paying taxes by declaring themselves a "natural person" rather than a taxpayer."

Switzerland: Tax amnesty pays off swissinfo
Jan 19 - Switzerland appears to, er, crack down on tax cheats? "An amnesty for repentant tax cheats in Switzerland brought millions of francs into the federal, cantonal and communal coffers in 2011."