The World's Richest Avoidance
Bono famously extolled the virtues of charity. Particularly governments extending tax dollars to offer alms to the poor countries of the world. He and former Canadian Prime Minister Paul Martin got on famously together, one of those utterly charming mutual admiration societies, an exclusive little quorum of two.And while Bono exhorted generosity from the wealthy governments to the impoverished ones, he took very good care to have his millions invested in a tax haven abroad, keeping his fortune safe from the improvidence of paying those oh-so-inconvenient taxes in Ireland.
When Paul Martin was Finance Minister in the Chretien-era government he could have, but did not close tax loopholes for Canadian corporations such as companies like Canadian Steamship Lines doing business in Barbados. A tax haven for foreign companies enabling them to avoid paying their country's taxes and wages.
And, some of CSL's subsidiaries registered in Barbados, paying almost zip taxes on profits. (What's more, Canada Steamship Lines had received $161-million in government contracts, grants and contributions from 1993 to 2004.) The excuse used is that this is done in the spirit of good business practice, and competitiveness.
The U.K.-based Tax Justice Network estimates $21 to $32-trillion representing financial wealth accrued to the world's richest people is channelled through tax havens. That represents global tax losses of roughly $200-billion annually through deliberately evasive action taken to avoid paying taxes on the part of the filthy rich.
Careful husbanding of their riches is obviously the way to remain wealthy.
Of 139 low-middle-income countries, offshore wealth of their richest citizens and corporations represents a far greater amount than their combined external debts.
As well, due to the secrecy provisions of tax havens, the climate is right for laundering crime proceeds. The UN Office on Drugs and Crime posits an estimate of over $1-trillion of crime-related money - derived from drug and arms smuggling, human trafficking and corruption - laundered through this system.
And interception is less than 1% by related authorities.
In a very successful effort to avoid regulations, shield themselves from liability and lower or eliminate tax obligations, multinationals and banking and financial institutions routinely make use of tax havens. To get a picture of the scope of this immoral tax avoidance scheme, here's some additional perspective: tax havens take in over two million "international business corporations".
Reports out of the United Kingdom last year revealed Google, Amazon and Starbucks paid little to no taxes to the national treasury in spite of earning billions in profits in the British market. Officials from the three companies admitted to shifting profits out of Britain into lower tax jurisdictions, before a parliamentary investigation.
Global Financial Integrity project based in Washington estimated that between 1990 and 2008, $197-billion was swept out of the world's 48 poorest countries due to crime, corruption and tax evasion. Trade mispricing by multinational companies led to tax revenue losses of $160-billion yearly to the world's 49 poorest countries.
So much for ethical business practises and the righteous sanctimony of celebrities like Bono, and responsible world political leaders like Paul Martin and his ilk.
Labels: Corruption, Economy, Finance, World News
posted by Pieface @ Saturday, April 13, 2013
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