We’re heartened to see that the Tax Haven USA story — one that we seem to have helped breathe new life into with this blog in January last year, and our subsequent USA report, coming into the mainstream, helped by the Panama Papers. There are many, many stories out there now, including a comment article in yesterday’s Financial Times from today’s TJN blogger, entitled Panama is only one head of the tax haven hydra.
It cites one player in the spreading game:
“It’s going nuts. Everyone is doing it or looking into it,” says a tax consultant, speaking of the American loophole.”
Bloomberg is running a story entitled The World’s Favorite New Tax Haven Is the United States, which closely follows the line that TJN has been taking, particularly since our big Loophole USA blog a year ago, and our subsequent USA Report for the Financial Secrecy Index last October.
Expanding on a quote we used in our USA report and in our more recent call for Europe to apply withholding taxes to counter the new global threat emanating from the United States, Bloomberg cites:
“How ironic—no, how perverse—that the USA, which has been so sanctimonious in its condemnation of Swiss banks, has become the banking secrecy jurisdiction du jour,” wrote Peter A. Cotorceanu, a lawyer at Anaford AG, a Zurich law firm, in a recent legal journal. “That ‘giant sucking sound’ you hear? It is the sound of money rushing to the USA.”
For immediate release. Jan 21, 2016
Europe must impose withholding taxes on payments, to target U.S. and other tax havens
Global transparency scheme in peril: strong action now needed
The Tax Justice Network is calling for the European Union to follow the United States in imposing a withholding tax against jurisdictions that do not meet new standards of tax transparency – starting with the United States itself.
John Christensen, director of the Tax Justice Network, said:
Updated, Oct 10, with additional analysis from the Swiss “Q and A“:
Switzerland has grudgingly made some important concessions on secrecy in recent years – although we’ve always been at pains to stess that it has happened an inch at a time, and usually bilaterally. Typically, this means making concessions to one country alone – most importantly, the United States, or to the European Union. Each time, it’s been in response to intense pressure. Generally, Swiss bankers have remained at the feeding trough of dirty money from developing countries, since they don’t have the political or economic clout to hurt them back in retaliation for their help-a-plunderer role.