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Tuesday, August 29, 2017

Swiss spies suspected in tax espionage

How do you say ‘whoops’ in Russian? Podesta Group retroactively files more DOJ disclosures for pro-Putin work Washington Examiner. UserFriendly: “I for one am shocked, shocked!!!”

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The lawyer for former senior tax officer Michael Cranston has complained about the amount of evidence filed against him, labelling it ...

Swiss spies suspected in tax espionage


A man suspected of being a Swiss spy has been indicted in Germany. He is suspected of having been employed by the Swiss intelligence services to spy on German tax officials in an attempt to discover who was involved in a 2010 leak of information from a Swiss Bank. German officials bought CDs containing the data in 2012, and shared it with officials across the European Union. In total the data helped recover €7bn in tax revenue.

The case is one of the stranger cases of state capture by the banking industry we have seen in recent years, and shows that despite claims that it is embracing transparency, the Swiss Government are still willing to go to extreme lengths to protect their banks being used as hubs for dirty money.
However, spies working for the Swiss government may think twice in the future about undertaking such missions, if stories circulating about the arrest of this suspect are to be believed. According to some reports Swiss prosecutors may have blown the cover of their spy by failing to redact passages of documents related to the prosecution of a Swiss banker for leaking the information.





Apartheid Gold and Swiss secrecy



For anyone looking for more about how Swiss banking secrecy and Swiss foreign policy are intertwined, look no further than this week’s feature on Apartheid gold in South Africa’s News 24 website.


The article looks at declassified documents from Switzerland which provide details of how Swiss banks helped the Apartheid regime stash their gold in the tax haven’s bank vaults.
Why were to Swiss to keen to help out? Bizarrely, it appears that one reason is that Switzerland was eyeing up South Africa as a safe haven for government officials and Swiss banks if World War three was to break out in Europe.



Tax, international co-operation and the developing world



Representatives from tax authorities from 35 countries met on the shores of Lake Victoria last week for a high level dialogue on how to improve tax collection on the continent. The meeting, which was hosted by the African Tax Administration Forum (ATAF), was the first of its kind, and gave some insight into the priorities of African tax officials.


Top of the target list appears to be tax incentives. According to the Ugandan Observer there appears to be widespread agreement that tax incentives given to large foreign companies to invest in Africa, simply aren’t working, and are costing states dearly.


Delegates at the event said that tax incentives are frequently a key ask form investors. Dumisani Masilela, the commissioner general of Swaziland’s tax body, argued that African governments needed to see how they could improve local businesses as a counter to this.
He said: “They [investors] want to take as much money as they can to their respective countries. The thing we need to be looking into is developing entrepreneurship among ourselves.”





Portugal eaten by Angola’s kleptocrats



An article in the New York Times this week highlights the damage that can be done by financial secrecy and offshore finance.
In Angola half of the population live on less than $3.10 a day, and poor healthcare contributed to yellow fever outbreak earlier this year. However, Danillo Dos Santos, the president’s son, still finds €500,000 to buy a collection of photographs at a celebrity auction.


Over three decades Dos Santos has ruled over Angola, but as one of Africa’s longest serving presidents steps down, many think little will change, because during that time the president has managed to concentrate power in the hands of a tiny elite. The most powerful, and the most wealthy are his daughter and his son, who control the state oil company and the state’s sovereign wealth fund. For years allegations have circulated that the Dos Santos family have used their grip on the economy to siphon off billions via offshore companies.


One consequence of the huge concentration of wealth in the hands of Angola’s elite has been its relationship with its former colonial master, Portugal.


Desperate for cash, Portugal has flung open its bank vaults to questionable Angolan cash, and has adopted a no questions asked policy on where that money might come from. The result has been a growing bribery problem involving Angolan investments in the country.
The full story can be found here.

https://koozarchdotcom1.files.wordpress.com/2015/07/treasure-island-by-skye-yuxi-sun-rca_dezeen_468_16.jpg 




Illicit Financial Flows: Why we should claim these resources for gender, economic and social justice awid

Panama Papers case, Pakistan: Nawaz Sharif’s family challenge disqualification verdict Financial Express
For analysis, listen to the TJN August 2017 podcast 
 

Panama Papers lead to exposing 3 billion yen in untaxed income The Asahi Shimbun

The oil deal, the disgraced former minister, and $800m paid via a UK bank The Guardian
“Britain’s commitment to tackling high-end money laundering through the City of London is under serious scrutiny”

Why Lowering Corporate Taxes Is a Political Promise that Does Not Deliver Austaxpolicy: The Tax and Transfer Policy Blog
A reminder: Ten Reasons to Defend the Corporation Tax - how it protects democracy and curbs inequality - and seven myths, busted       

Malawi, Ghana, Africa: #TaxJustice to fund education Global Alliance for Tax Justice

Could Puerto Rico Be the Next Hot Tax Haven? Bloomberg Businessweek"Some 65,000 Puerto Ricans left their bankrupt U.S. island commonwealth last year. A group of private bankers are moving the other way. They’re increasingly opening offshore banks known as International Financial Entities ..."

South Africa: Parliamentary Budget Offices Conference Turns Its Attention to Illicit Financial Flows Parliament of the Republic of South Africa

African taxmen balk at financial incentives The Observer Uganda
“Tax incentives present one of the largest leakages in the system. Countries are opening up special economic zones which are undermining taxadministration.”

UK: 'Life-changing consequences:' HMRC warns of the risks of hiding wealth Business Insider

USA: FinCEN escalates crackdown on shell companies Compliance Week

Australia: Commonwealth Bank faces class action over money-laundering scandal The Guardian



African tax authorities consider how to boost revenue devex

Developing Countries’ Role in International Tax Cooperation Martin Hearson's Blog

Video: EADI Nordic Conference 2017 // Globalization and International Tax Justice       

New Report: Anti-Money Laundering Efforts Near Failure FACT Coalition

Panama Papers: Pakistan’s Ousted Prime Minister Refuses to Cooperate with Investigators OCCRP

Pakistan Finance Minister Ishaq Dar files review petition against Panamagate verdict The Indian Express

Portugal Dominated Angola for Centuries. Now the Roles Are Reversed.The New York Times
“In Angola, they call Portugal the laundromat”

Vietnam: FDI from tax havens poses risks to economy VietNamNet
Hat tip: AABA's Offshore Watch  

Nigeria: Federal Government Gives Wealthy Tax Evaders 90 Days to Declare Assets This Day

Australian Taxation Office commissioner says profits on $7bn in sales being taxed for the first time The Guardian

Multinational giants accused of shifting Australian revenue offshore The Sydney Morning Herald

Chevron Settlement Could Mean $8B in Extra Tax for Australia Bloomberg BNA
See also: Australia puts multinationals on notice after Chevron drops tax appeal Reuters

UK crackdown on global financial crime puts onus on companies International Bar Association

Suspected Swiss spy indicted in Germany swissinfo
Alleged spying on German tax officials, in data leak case

India: Income-Tax Dept gets more hands to sift shell firms The Hindu Business Line

Brazil: Operation Car Wash Widens to Include US & Greek Firms OCCRP

Sweden Charges Bombardier Sales Manager with Bribery OCCRP
... for a US$ 350 million deal in Azerbaijan, allegedly via a UK shell company

Panama Papers: Fugitive's trail exposes Red Bull co-owners' offshore deals ABC News / AP

A Spark in the Dark – Scottish Limited Partnerships and the UK Government’s Faltering Transparency Initiative Bellingcat




Unmissable: 'The Spider's Web: Britain's Second Empire' film and ...