We’re pleased to say that the world is moving towards the registration of beneficial owners (BOs) who are the natural persons who ultimately own, control or benefit from legal persons (e.g. companies) and legal arrangements (e.g. trusts). If made public, these registries would increase financial transparency. Public registers of BOs are the only way to prevent criminals from hiding behind opaque structures and nominees from facilitating tax evasion, money laundering, fraud, and other forms of corruption, including the financing of terrorism. They are also a prerequisite for the smooth functioning of markets by providing basic information for market participants and regulators so they know who is doing business where, as well as for the wider understanding of patterns of national and international economic activity.
By Alex Cobham
Last week I took up the kind invitation of the government of Cayman to speak at their conference on ‘Tax Transparency in the Global Financial Services Ecosystem’, and to meet with staff from the monetary authority, statistics office and corporate registry; and with a range of industry representatives including those from the compliance association and Cayman Finance. Above is a video of my presentation; and here a few reflections on the divergences between reputation, rhetoric and reality; and on where things now stand.
The Bundesrat has today voted to recommend implementing a public register of the beneficial ownership of companies and trusts.
Great news from Germany, as the country takes an important step forward towards corporate transparency.
The problems with measuring tax systems SPERI
‘In debates about tax policy we need to de-emphasise the role of economics and measurement and rekindle the politics’. Blog by TJN’s Nicholas Shaxson, author of Treasure Islands: Tax Havens and the Men Who Stole the World.
The Despot’s Guide to Wealth Management – On the International Campaign against Grand Corruption
New book by Jason Sharman
How human rights law has been used to guarantee corporations a ‘right to profit The Conversation
Read about Tax Justice and Human Rights here.
The #LuxLeaks whistleblowers appeal verdict is in and once again it demonstrates what an upside down world we’re living in, when whistleblowers on the frontline of tax justice find themselves convicted for a second time for exposing information that was so clearly in the public interest. Disclosure of such information can be decisive for driving political change, and this is exactly why tax deals in Luxembourg were brokered behind closed doors. Now it’s time to swing the spotlight onto accountancy firm PwC not only for the disgraceful way they treated these whistleblowers, but to hold them to account for their role the whistleblowers exposed in siphoning off tax revenue from so many EU member states. You can read about the less known but truly shocking treatment of whistleblower Raphael Halet in detail here.
The Tax Justice Network’s John Christensen says today,
“This is a disgraceful verdict when you consider that the real villains are accountancy firm PwC and the Luxembourg tax authorities who should never have negotiated these secret tax deals which go against the grain of free trade and all of which will almost certainly be found to constitute illegal state aid.”