Edition: Global  
One News Page
“Probably the fastest-access news portal in the world”
> >

DEBATE: Can we close the Paradise Papers tax loopholes?

City A.M. Tuesday, 7 November 2017 ()
DEBATE: Can we close the Paradise Papers tax loopholes?Can we close the loopholes that make the Paradise Papers kind of tax behaviour legal?

*Alex Cobham, chief executive of the Tax Justice Network, says YES.*

Why do we tolerate financial secrecy?

Companies and individuals obviously want know who they are doing business with. Markets work less efficiently when we allow anonymous ownership. Corruption is more profitable. And taxes are less effective, and less fair, when some can hide their income streams and assets. Estimates suggest $500bn of tax revenues are lost globally to multinationals’ avoidance, and $200bn to evasion, with lower-income countries hit hardest by both.

The UK is involved in the world’s biggest financial secrecy network through its Overseas Territories and Crown Dependencies. The government should make a start addressing this today – by requiring each one to introduce public registers of beneficial ownership for companies, trusts and foundations.

This must be the standard for every jurisdiction that wishes to participate in the benefits of globalisation.

Eliminating anonymous transactions will make markets and states work better. Why wouldn’t we do it?

*Read more*: Paradise Papers: The danger of tarring all those named with the same brush

*James Quarmby is a partner at Stephenson Harwood, says NO.*

This question pre-supposes that the offshore jurisdictions such as the ones that appear in the Paradise Papers exist only for the purpose of exploiting loopholes or promoting tax schemes.

The reality is that they are in fact generally used for legitimate trading and investment purposes. Indeed, of all the disclosures so far, not one has evidenced any illegal activities, which is notable given the millions of files examined by the International Consortium of Investigative Journalists.

The idea that offshore jurisdictions are being used to shelter vast sums of taxpayer money – for the purposes of tax avoidance – is simply false. For example, the investment made by the Queen was not a “tax scheme”, but instead a mundane investment fund of the kind held by pension funds across the UK and which delivered absolutely no tax benefit compared to a similar fund in the UK.

The nature and reason for these investments has been the subject of inaccurate reporting based on innuendo and emotion. It’s about time we had some facts.

*Read more*: Queen and key Trump ally among public figures featured in "Paradise Papers"
0
shares
Share on
Facebook
Share on
Twitter
Post on 
Reddit
Share by
Email
 
Source: HuffPost UK STUDIO - < > Embed

News video: Paradise Papers: Queen Should Apologise For Investing In Tax Havens, Says Jeremy Corbyn

Paradise Papers: Queen Should Apologise For Investing In Tax Havens, Says Jeremy Corbyn 00:47

Jeremy Corbyn has suggested the Queen or her advisers should apologise for investing in offshore funds.

You Might Like


Recent related news

European Parliament debates Paradise Papers tax claims

European Parliament debates Paradise Papers tax claims
The European Parliament has had an urgent debate on the so-called Paradise Papers.
BBC News - EuropeAlso reported by •Sydney Morning HeraldSeattle TimesNews24Eurasia ReviewMotley FoolNPR

'A cat-and-mouse game': Why closing tax haven loopholes is a challenge

The revelations pouring out of the Paradise Papers have once again raised questions about the use of tax havens and how wealthy individuals and corporations are...
CBC.ca - Front Page

Paradise Papers: legal firms 'ignore the law with impunity', Margaret Hodge tells parliament

The former chair of the public accounts committee called an emergency debate on the Paradise Papers scandal.
Law Society Gazette - LegalAlso reported by •BBC NewsMondaqNPR

Hong Kong should rebrand itself as a low tax haven

“We [the rich] don’t pay taxes. Only the little people pay taxes,” said Leona Helmsley, a notorious New York heiress who was sentenced for 16 years for...
S.China Morning Post - Business

Paradise Papers is an ‘opportunity’ for EU to tackle multinational tax evasion, says Greek MEP

The Paradise Papers has presented the EU with a golden opportunity to crack down on tax evasion by multinationals and the art of investing profits from cheap...
EurActiv - EuropeAlso reported by •BBC NewsMondaqNPR

Pro-tax-haven campaign got advice from top ranks of Canada's civil service, Paradise Papers reveal

Senior Canadian bureaucrats held private meetings with a lobbyist for the interests of the world's tax havens, even providing talking points that went against...
CBC.ca - Front Page


Other recent news in Business

Apple delays HOMEPOD smartspeaker launch until 2018TED talks empire has been grappling with SEXUAL HARASSMENT, interviews and internal emails show
Budget 2017: Chancellor PHILIP HAMMOND 'to target housing and NHS'Flying for THANKSGIVING? Here's how to get the best deal.
How would the middle class fare under the SENATE TAX bill?Anadarko Petroleum planning to goose spending in COLORADO in 2018
Shah Rukh Khan to produce NETFLIX multilingual seriesFAA Approves Drone As 'Cell Phone Tower In The Sky' For PUERTO RICO
Hariri will be in LEBANON for Independence Day: PresidentSee the MILWAUKEE BUCKS arena with construction 68% complete: Slideshow

Twitter

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2017 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+