Cyborg | Designer-Babies | Futurism | Futurist | Immortality | Longevity | Nanotechnology | Post-Human | Singularity | Transhuman

Tax Havens / Bank Secrecy Global Financial Integrity

 Tax Havens  Comments Off on Tax Havens / Bank Secrecy Global Financial Integrity
Dec 142015
 

SHARE

The phrase tax haven often conjures up images of a balmy palm tree-studded island nation with an anything goes attitude to accepting financial deposits and a distinct distaste for foreign authoritiessunny places for shady people, as author Nicholas Shaxson calls them. But these classical tax havens now have a lot of companydespite recent progress, there are still plenty of places all over the world where one can stash their money without scrutiny.

In other words, tax havens arent tax havens just because they have low taxesrather, what makes a tax haven is its opacity of financial information. This is why tax havens are often more accurately referred to as secrecy jurisdictions, and why they facilitate many more problems than just tax evasion.

While the legal regimes that tax havens set up to enable this secrecy are complex, their basic outline is simplebanks, companies, trusts, or other financial actors in the country are allowed to accept money from basically anywhere without reporting it to the authorities in the country where it originates or from which it is controlled. In some cases, it is actually illegal to disclose that information, but in many places, it is simply because the banks or other entities arent required to disclose it and there is no mechanism to force them to do so.

Laundering criminal proceeds through a tax haven is therefore merely a matter of finding a bank in that country to accept your deposit without asking questions, shuffling the money around a bit, and then sending it to wherever youd like to spend it or to wherever youd like to receive it. Evading taxes through a tax haven works similarlydisguise income or assets as passing through that country and fail to report it to your home countrys tax authority. For the less criminally inclined, tax havens often also offer a great legal ways to avoid paying taxes, simply by characterizing income as passing through that country and using loose tax treaties or loopholes in ones home country tax law to claim that the income is untaxable there.

Law enforcement and tax authorities will always be one step behind criminals and tax evaders, following cryptic transaction records and grasping at shadows rather than seeing where money is actually hidden.

Over the years, many developed countries have taken steps to break through tax haven secrecy by including provisions in tax treaties or other agreements to exchange financial information with other governments, including tax haven governments upon request. This system has two major flaws, though: First, it requires the requesting government to know what specific information theyre looking for, which can be difficult to pin down when attempting to trace money passing through anonymous shell companies or many other money laundering strategies. Second, the tax haven government may not be able to collect or have access to the information being regulated; so pursuing the process can be an extremely slow process with potentially little reward.

The alternative is automatic exchange of financial information (or automatic exchange for short), and it is exactly what it sounds likecountries automatically exchange information on bank accounts, transactions, and financial flows with each other on a periodic basis, enabling law enforcement and tax authorities to follow up on any leads they may have. GFI has advocated for many years that countries should establish and participate in systems whereby they exchange as much information with each other as is feasible.

While automatic exchange may have been considered unfeasible in the past, technological advances have made the collection, transfer, and processing of the large amounts of data involved relatively easy, and automatic exchange has come to be seen as a common-sense solution to the problems created by tax haven secrecy. The G20 nations declared in 2013 that automatic exchange is the new global standard, and pledged to begin exchanging financial information automatically by the end of 2015. In 2014, every OECD member-state and a group of several other countries endorsed a standard system for multilateral automatic exchange of financial information. GFI strongly supports automatic exchange of financial information on a multilateral basis and believes the opportunity to join this system should be extended to all willing countries, specifically developing countries.

Developing countries would benefit tremendously from a well-designed and well-implemented system of automatic exchange of financial information. Developing countries law enforcement and tax authorities often have less expertise or technical capacity for tracking transactions and income passing through tax havens, yet these countries are harmed the most by the illicit financial flows enabled by the opacity of tax havens and the shadow financial system.

GFI believes that any multilateral system of automatic exchange should also serve the interests of the worlds smaller economies, but must also take into account the capacity of these countries to effectively utilize the data they would receive from this system. Technical assistance and capacity-building programs will be crucial to this effort, but developed countries should also consider exchanging information to developing countries without obligating them to return the favor, at least initially.

The Foreign Account Tax Compliance Act (FATCA) is a U.S. law enacted in March of 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act. FATCA requires financial institutions outside the United States to determine whether it has any customers who are U.S. citizens and report information on all of those customers accounts to the Internal Revenue Service (IRS). Any bank refusing to comply will be assessed an automatic withholding tax on its U.S.-source income. Even though it has not even fully gone into effect yet (the first information exchange will take place in 2015), the law is widely viewed as a game-changer in global information exchange and helped pave the way for other countries commitments to a multilateral information exchange system. For more information on FATCA, please see the U.S. Treasury website.

Multinational companies (or MNCs) use tax haven secrecy in slightly different ways then criminal tax evaders and money launderers. In general MNCs use complicated corporate structures involving layers of tax haven entities and accounts to disguise or alter the character of their income in ways that (often legally) reduce their corporate tax bill, a process known as tax avoidance (in contrast to tax evasion, which is illegal). These strategies can be wildly successful for MNCs, bringing their tax bills down to zero or even triggering a tax refund from the government, while they enjoy massive profits.

Cracking down on tax avoidance often requires closing the seemingly endless number loopholes in tax treaties and tax laws one at a time. However, one way to greatly expedite this process, as well as bring public pressure to bear on rampant tax avoiders, is to require them to own up to their tax schemes. Global Financial Integrity recommends that all multinational companies be required to publicly disclose basic financial information, such as their sales, profit, taxes paid, and number of employees, in each individual country in which they operate. This policy, called country-by-country reporting, will not only help both rich and poor countries better enforce and amend their tax laws, but it will also make free markets more transparent for investors and the public at large.

Read more here:
Tax Havens / Bank Secrecy Global Financial Integrity

 Posted by at 3:44 am  Tagged with:

The Tax Justice Network: Changing the World – Video

 Tax Havens  Comments Off on The Tax Justice Network: Changing the World – Video
Apr 022015
 



The Tax Justice Network: Changing the World
A short video on the Tax Justice Network and its role in shaping global debates on tax, tax havens, financial transparency and corruption. Join us! http://www.taxjustice.net.

By: Tax Justice Network

Read the original here:
The Tax Justice Network: Changing the World – Video

 Posted by at 12:46 pm  Tagged with:

"The Price We Pay" | Harold Crooks Documentary – Video

 Tax Havens  Comments Off on "The Price We Pay" | Harold Crooks Documentary – Video
Mar 212015
 



“The Price We Pay” | Harold Crooks Documentary
The documentary “The Price We Pay” says the rich are getting richer by hiding their money in tax havens. Subscribe to The National to watch more videos here: https://www.youtube.com/user/C…

By: The National

Read more:
"The Price We Pay" | Harold Crooks Documentary – Video

Terry’s Speech on the Youth Employment Initiative (10 February 2015) – Video

 Tax Havens  Comments Off on Terry’s Speech on the Youth Employment Initiative (10 February 2015) – Video
Mar 112015
 



Terry's Speech on the Youth Employment Initiative (10 February 2015)
It is our decision: Do we stand side by side with the millions of young people who are unemployed and desperate or do we support the few people and companies hiding their wealth in tax havens…

By: Terry Reintke

Read this article:
Terry’s Speech on the Youth Employment Initiative (10 February 2015) – Video

 Posted by at 11:48 am  Tagged with:

Interview: Tax evasion and money laundering – are things out of control? | Made in Germany – Video

 Tax Havens  Comments Off on Interview: Tax evasion and money laundering – are things out of control? | Made in Germany – Video
Mar 052015
 



Interview: Tax evasion and money laundering – are things out of control? | Made in Germany
The HSBC stands accused of enabling some 100000 wealthy clients to conceal their money from tax authorities by transferring it to tax havens. Markus Henn of…

By: DW (English)

See the article here:
Interview: Tax evasion and money laundering – are things out of control? | Made in Germany – Video

 Posted by at 12:47 am  Tagged with:

Number of Czech firms controlled from tax havens grows to 13,247

 Tax Havens  Comments Off on Number of Czech firms controlled from tax havens grows to 13,247
Mar 052015
 

The share of Czech firms controlled from offshore destinations dropped from 3.3 percent at end-2013 to 3.2 percent at end-2014, Bisnode said.

Owners invested Kc430m in share capital of these companies last year, a year-on-year increase of 7.4 percent.

But compared with previous years the growth in Czech companies’ departures into tax havens is slowing down markedly.

The biggest growth in the number Czech companies’ new registrations in tax havens was recorded for the Seychelles (110 new companies) and Cyprus (79). In contrast, the number of companies with owners registered in the Netherlands has been falling for quite a long time.

“A rapid increase in the volume of share capital, controlled by entities from tax havens, and a minimal increase in the number of newly established companies is signalling that there is a significant outflow of capital from the Czech Republic, which is very likely caused by tax optimisation,” Bisnode’s analyst Michal Ricar said.

Newly established ownership structures in tax havens are more aggressive and try to optimise their profits by all available means, Ricar said.

Michael Dobrovolny of company Apogeo, specialising in sale of companies into offshore destinations, said demand from clients is stable and shows a moderate growth trend.

“But clients now more often demand localities which suit their specific demand, which do not necessarily have to be tax havens,” Dobrovolny said.

source: Bisnode

Written by: TK http://www.ctk.cz

Read this article:
Number of Czech firms controlled from tax havens grows to 13,247

 Posted by at 12:46 am  Tagged with:

Ed Miliband issues warning to UK-controlled ‘tax havens’ – Video

 Tax Havens  Comments Off on Ed Miliband issues warning to UK-controlled ‘tax havens’ – Video
Feb 082015
 



Ed Miliband issues warning to UK-controlled 'tax havens'
UK territories must publish details of who controls firms registered there or face being put on an international “blacklist”, Labour has warned. In a letter to UK Overseas Territories and…

By: PointingInTheRightDirection

Read more:
Ed Miliband issues warning to UK-controlled ‘tax havens’ – Video

WEF 2015: $18 trillion unaccounted black money stashed in tax havens – Video

 Tax Havens  Comments Off on WEF 2015: $18 trillion unaccounted black money stashed in tax havens – Video
Jan 252015
 



WEF 2015: $18 trillion unaccounted black money stashed in tax havens
WEF 2015: $18 trillion unaccounted black money stashed in tax havens For latest news updates Subscribe to Sakshi News http://www.youtube.com/user/SakshiNews Visit us @ http://www.sakshi.com/

By: Sakshi TV

More:
WEF 2015: $18 trillion unaccounted black money stashed in tax havens – Video

 Posted by at 11:48 pm  Tagged with:

If tax havens create prosperity why cant 1 in 10 in Jersey afford a cooked meal every day? – Video

 Tax Havens  Comments Off on If tax havens create prosperity why cant 1 in 10 in Jersey afford a cooked meal every day? – Video
Dec 012014
 



If tax havens create prosperity why cant 1 in 10 in Jersey afford a cooked meal every day?
If tax havens create prosperity why can't 1 in 10 in Jersey afford a cooked meal every day?

By: Bonnlander

See the original post:
If tax havens create prosperity why cant 1 in 10 in Jersey afford a cooked meal every day? – Video

Absence of treaties with tax havens blocking black money fight – Video

 Tax Havens  Comments Off on Absence of treaties with tax havens blocking black money fight – Video
Nov 152014
 



Absence of treaties with tax havens blocking black money fight
Absence of treaties with tax havens blocking black money fight. HMTV, a leading Telugu News Channel, brings to you all the latest news from around the world …

By: HMTV News

Excerpt from:
Absence of treaties with tax havens blocking black money fight – Video

 Posted by at 4:46 pm  Tagged with:

S.Korean private sectors’ investment in tax havens increases / YTN – Video

 Tax Havens  Comments Off on S.Korean private sectors’ investment in tax havens increases / YTN – Video
Sep 302014
 



S.Korean private sectors' investment in tax havens increases / YTN
[YTN ] http://www.ytn.co.kr/_pn/1207_201409291027195738 Investment in tax havens by South Korean firms and individuals over the past seven years amounted…

By: ytnnews24

Originally posted here:
S.Korean private sectors’ investment in tax havens increases / YTN – Video

 Posted by at 8:46 pm  Tagged with:

S. Koreans, Firms Invest nearly US$23 Billion in Tax Havens

 Tax Havens  Comments Off on S. Koreans, Firms Invest nearly US$23 Billion in Tax Havens
Sep 292014
 

(MENAFN – QNA) South Korean companies and individuals invested nearly US23 billion in 50 tax havens over the past seven years, data showed Sunday.

According to the data by the National Tax Service and the Export-Import Bank of Korea, South Korean individuals and companies invested 22.77 billion in the tax havens from 2007 through 2013.

The amount represents about 12% of overall overseas investments made by South Korea worth 197.88 trillion won about (US189.4 billion) during the period, according to South Korea’s (Yonhap) News Agency.

Of the tax haven investments, 79.6% were made by big local companies, while 9.6% were made by small and mid-sized companies.

The money going to the tax havens has been on the rise since 2009 when the country was hit by the fallout of the 2008 financial crisis, coming in at 5.41 trillion won in 2013.

The ratio of the tax haven investment to South Korea’s overall overseas investment rose to 17.4% last year from 8% in 2007.

Conglomerates contributed the most to the increase, the lawmaker who demanded the data said.

“The rise in the investment to tax havens was due mostly to local big companies’ increased investment (there),” Rep. Oh Jae-sae of the main opposition New Politics Alliance for Democracy said. “We need to keep closer tabs on their move to use the tax havens as it could lead to tax evasion.”

Read the original post:
S. Koreans, Firms Invest nearly US$23 Billion in Tax Havens

 Posted by at 3:45 am  Tagged with:

Anonymous credit cards,offshore banking,offshore banking,anonymous banking,anonymity, – Video

 Offshore Banking  Comments Off on Anonymous credit cards,offshore banking,offshore banking,anonymous banking,anonymity, – Video
May 172014
 



Anonymous credit cards,offshore banking,offshore banking,anonymous banking,anonymity,
offshore credit cards,tax havens,bearer share company, bearer share companies,anonymous bank account,Anonymous credit cards,offshore banking,offshore banking…

By: George Soros

More here:
Anonymous credit cards,offshore banking,offshore banking,anonymous banking,anonymity, – Video

All you wanted to know about tax havens

 Tax Havens  Comments Off on All you wanted to know about tax havens
May 132014
 

A weekly column that puts the fun into learning

Lets admit it. Most of us get a little thrill out of finding new ways to save taxes. This is exactly what corporate biggies such as Google, IBM and Amazon have been doing too. Theyve been cleverly routing their global profits through subsidiaries set up in destinations called tax havens. This has been going on for long. But, having been denied their fair share of taxes, governments are now cracking the whip.

What is it?

Tax havens are countries that have low or near-zero tax rates, especially for some kinds of transactions. Switzerland, Singapore, Hong Kong and Mauritius are the popular ones. But the list includes others such as Luxembourg, British Virgin Islands, Cayman Islands, the Netherlands and Bermuda too.

Multinationals set up their holding companies in these locations which then invest in operations located at other high-tax locations. So, even as the company carries out its real business in a high-tax regime such as the US or India, its able to dodge the taxman by showing a large share of profits as emanating from a tax haven.

But its not just companies; tax havens have something on offer for rich individuals too, promising complete confidentiality. Now youre wondering if everything about tax havens is so clandestine, why havent they been banned at the outset? Well, this is not how things were meant to be. When tax havens first sprang up, they came up in small countries endowed with limited natural resources or other competitive advantages. Such nations saw near-zero tax rates as a good way to attract reluctant foreign capital. But with corporations and affluent individuals taking advantage of the secrecy to save taxes, the whole thing went awry.

Why is it important?

Irked by tax revenue losses, governments have now begun to come down heavily on the menace of tax havens, threatening to revoke tax treaties and demanding more disclosures from them. In India, the phenomenon of routing black money to tax havens has given birth to what is called round-tripping. Foreign direct inflows from Mauritius, Indias second biggest source, totalled $4.5 billion during April-Feb of the last fiscal. But is the tiny island nation really such as industrial powerhouse? Not really. Cynics suspect a large part of the investment flowing in from Mauritius is actually Indian money sent abroad and routed back to avoid taxes. If its Mauritius for us, its British Virgin Islands for UK and Luxembourg for Russia.

The worry is that the anonymity that tax havens offer allows other kinds of illegal activity to flourish too. The world over billions made through illegal routes such as drug trafficking and arms smuggling are said to be laundered through tax havens.

Why should I care?

Continued here:
All you wanted to know about tax havens

All you wanted to know about

 Tax Havens  Comments Off on All you wanted to know about
May 122014
 

A weekly column that puts the fun into learning

Lets admit it. Most of us get a little thrill out of finding new ways to save taxes. This is exactly what corporate biggies such as Google, IBM and Amazon have been doing too. Theyve been cleverly routing their global profits through subsidiaries set up in destinations called tax havens. This has been going on for long. But, having been denied their fair share of taxes, governments are now cracking the whip.

What is it?

Tax havens are countries that have low or near-zero tax rates, especially for some kinds of transactions. Switzerland, Singapore, Hong Kong and Mauritius are the popular ones. But the list includes others such as Luxembourg, British Virgin Islands, Cayman Islands, the Netherlands and Bermuda too.

Multinationals set up their holding companies in these locations which then invest in operations located at other high-tax locations. So, even as the company carries out its real business in a high-tax regime such as the US or India, its able to dodge the taxman by showing a large share of profits as emanating from a tax haven.

But its not just companies; tax havens have something on offer for rich individuals too, promising complete confidentiality. Now youre wondering if everything about tax havens is so clandestine, why havent they been banned at the outset? Well, this is not how things were meant to be. When tax havens first sprang up, they came up in small countries endowed with limited natural resources or other competitive advantages. Such nations saw near-zero tax rates as a good way to attract reluctant foreign capital. But with corporations and affluent individuals taking advantage of the secrecy to save taxes, the whole thing went awry.

Why is it important?

Irked by tax revenue losses, governments have now begun to come down heavily on the menace of tax havens, threatening to revoke tax treaties and demanding more disclosures from them. In India, the phenomenon of routing black money to tax havens has given birth to what is called round-tripping. Foreign direct inflows from Mauritius, Indias second biggest source, totalled $4.5 billion during April-Feb of the last fiscal. But is the tiny island nation really such as industrial powerhouse? Not really. Cynics suspect a large part of the investment flowing in from Mauritius is actually Indian money sent abroad and routed back to avoid taxes. If its Mauritius for us, its British Virgin Islands for UK and Luxembourg for Russia.

The worry is that the anonymity that tax havens offer allows other kinds of illegal activity to flourish too. The world over billions made through illegal routes such as drug trafficking and arms smuggling are said to be laundered through tax havens.

Why should I care?

View original post here:
All you wanted to know about

 Posted by at 4:47 pm  Tagged with:



Pierre Teilhard De Chardin | Designer Children | Prometheism | Euvolution | Transhumanism