From Citizens for Tax Justice in the U.S.: "It is a truism in Washington that being wrong does not preclude one from wielding influence. There are, however, some pundits who are so egregiously wrong that it boggles the mind to find policymakers taking their advice. Art Laffer is one of these … [Read more...]
Taxing corporations
Barclays sheds some light on its financial affairs, country by country
Richard Murphy, who pioneered the concept of Country by Country reporting, has produced an important analysis of the data revealed in one of the first such published reports, from UK-based Barclays bank. Among many other things, he says: "This analysis suggests that Barclays is massively … [Read more...]
Quote of the day on the OECD’s tax project: “let’s hope nothing happens”
From the Financial Times, in a story about a conference on the OECD's much-discussed BEPS project to reform international tax rules for transnational corporations: “The gameplan is to be positive but hope as little as possible happens,” is how Paul Oosterhuis, a tax partner of Skadden Arps, the US … [Read more...]
IMF: tax havens cause poverty, particularly in developing countries
The IMF has a major new Policy Paper out entitled Spillovers in International Taxation, looking at the effects that one country’s tax rules and practices can have on others. Of course this is a Staff Report and the IMF would never be so rude to some of its most powerful member states as to … [Read more...]
The UK’s ‘open for business’ tax regime: investment falls
We were going to do a job on this report but Tax Research got there first, so we'll cut and paste: UK corporation tax policy fails to attract new business as Foreign Direct Investment falls From the time that the current government came into power corporation tax reform has been one of their … [Read more...]
Quote of the day: coddling internet infants with tax subsidies
From Citizens for Tax Justice in the U.S. Dear Congress: The Internet Never Was an Infant Industry That Needed Coddling That's our quote of the day, from their headline. There's simply no reason to shovel subsidies at this fabulously wealthy (and increasingly politically powerful) sector. Yet … [Read more...]
London march: Join the new Tax Dodgers’ Alliance
From UK Uncut, a march planned for this Saturday (June 21): Come and join the newly formed 'Tax Dodgers Alliance'. Big businesses and the super wealthy are welcome. Bankers, lawyers, CEOs, new money, old money... What do we have in common? We're stinking rich & we don't want to share - our cash … [Read more...]
Euro Commission probes corporate tax arrangements of Apple, Starbucks and Fiat
From Europa.eu "The European Commission has opened three in-depth investigations to examine whether decisions by tax authorities in Ireland, The Netherlands and Luxembourg with regard to the corporate income tax to be paid by Apple, Starbucks and Fiat Finance and Trade, respectively, comply with … [Read more...]
Quote of the day: on corporate tax policy making
From Martin Hearson: “What my clients are concerned about,” said my friend, “is political interference in corporate tax policymaking.” I found this quite startling. Is it possible that businesses consider corporate tax policy to be a matter for private negotiations between them and the government, … [Read more...]
Tax dodging and the birth of the British Empire
As we've documented, the United Kingdom plays a central - if not the central - role in the modern global system of offshore tax havens, or secrecy jurisdictions. Now here's a post from ActionAid, looking at (yet) another aspect of all this. Cross-posted, with permission. Tax dodging and the … [Read more...]
Almost all Spanish multinationals use tax havens – Report
Via The Guardian: "Almost all of the 35 companies listed on the Spanish stock exchange use tax havens, according to a report from Observatorio RSC, an organisation that monitors corporate social responsibility. The figures, based on company reports for 2012, show a 31.9% increase in the use of tax … [Read more...]
In 2009-10, over 98 pct of Google’s and Oracle’s subsidiaries disappeared
. . . disappeared from view, that is. From the Social Science Research Network, an academic paper from last year: "From 2009 to 2010, 98 percent of Google’s and 99 percent of Oracle’s subsidiaries disappeared from the Exhibit 21s filed with their SEC Form 10Ks. However, a March 2012 search of … [Read more...]
CTJ: U.S. Fortune 500 companies likely escaping $550bn in tax
From Citizens for Tax Justice: "American Fortune 500 corporations are likely saving about $550 billion by holding nearly $2 trillion of “permanently reinvested” profits offshore. Twenty-eight of these corporations reveal that they have paid an income tax rate of 10 percent or less to the … [Read more...]
Hedge funds versus tax collectors: quote of the day
From U.S. tax professor Victor Fleischer, in an article looking at how hedge funds and their managers use Bermuda reinsurance vehicles for their tax shenanigans: "The chess match between tax collectors and fund managers will continue. The top 25 hedge fund managers have one advantage, though. … [Read more...]
Report: Switzerland’s role in Shell’s tax avoidance
From SOMO in the Netherlands: "There is not one drop of oil coming out of the Swiss mountains, but still Royal Dutch Shell has eight subsidiaries in Switzerland. Between 2001 and 2005 the Dutch-British oil multinational set up a range of subsidiaries in the country, although these entities are not … [Read more...]
