Archive : Category

Trusts – Weapons of Mass Injustice: new Tax Justice Network report

It is a fact that the trust laws of some tax havens openly promote illegality. The reality that some tax havens will not enforce foreign laws (e.g. ensuring non-recognition of foreign laws and judgements that favoured legitimate heirs and former spouses) is even publicly advertised by some offshore service providers, not on the deep web like drugs and illegal weapons, but on the internet, accessed by a simple google search on tax or estate planning.TJN square logo - NOV-2013

Despite this, there has been some reluctance from governments to take on the issue of trusts, and some difficulties posed for governments that have attempted to deal with some of their more problematic features. Today, a new paper called Trusts – Weapons of Mass Injustice from the Tax Justice Network attempts to reopen the debate on trusts, and argues that there is urgent need for effective measures to curtail their activities.

Beneficial Ownership and disclosure of trusts: challenging the privacy arguments

December 7, 2016   Blog, Financial Regulation, Secrecy

On July 22nd, 2016 the French supreme constitutional court ruled on a case brought by a US American citizen resident in France who had created a trust, allegedly to distribute her inheritance. She was contesting moves by France to set up a public register of trusts connected to France in an attempt to tackle tax fraud and serious economic and financial crime[1]. So, what does this mean for transparency and tax justice?

A Tax Justice Network How-To Guide on solving secrecy risks around Trusts

TJN square logo - NOV-2013The Tax Justice Network has today released a new report: The case for registering trusts – and how to do it. Many people would have you believe that solving secrecy risks around trusts is impossibly complicated. Now we show it isn’t. Another objection often raised is that it’s not worth the cost. Well, we think it is. And not only that, but technology now makes it affordable. We release our report just as the EU Commission is discussing an amendment to the 4th EU Anti-Money Laundering Directive regarding the registration of trusts and public disclosure.

Brexit gets worse as London seeks to wriggle free from UK

London, going further offshore?

London, going further offshore?

Cross-posted from Fools’ Gold.

We have our own particular reasons for disliking Brexit – the recent decision by the UK to leave the European Union.

In a pre-Brexit analysis we quoted Adam Posen, director of the Peterson Institute for International Economics, who articulated what is probably our biggest generic concern:

“If you’re anti-regulation fantasists to begin with, you start going down the path, ‘Oh we can become an even more offshore center. We can become the Cayman Islands writ large, or Panama writ large.’ And this frankly is the way I think this also spills over to the rest of the world, is that the UK decides, ‘Hey, regulatory arbitrage, letting AIG financial products run in London, actually destroyed the US financial system, but didn’t hurt us – made us a lot of money. Let us continue down this path. Let us be the ‘race to the bottom’ financial center. And I think this that’s where this going, because they’re not going to have any other option. It’s not good.”

HSBC opts to stay in ‘competitive’ London. (It was never going to leave anyway)

HSBCFrom the Fools’ Gold blog, yesterday:

There’s been a lot of talk for a long time about a threat from globe-trotting HSBC to move its headquarters from London to Hong Kong. It seems there’s been a resolution of the question for now, of sorts. As Bloomberg puts it:

“HSBC Holdings Plc recommitted its future to London, ending 10 months of deliberations over whether to move its headquarters, after securing concessions from the U.K. government on regulation and taxes. The shares rose.”

That’s the Competitiveness Agenda at work, right there. Shower goodies on mobile capital and its owners for fear that they’ll flee elsewhere. More specifically, via Reuters:

Back to Top