AFP has reported:
The German finance ministry threatened on Friday to tax all financial transfers to Liechtenstein unless the Alpine principality relaxed its banking secrecy codes and helped trace tax evaders.
"We are thinking of taking additional steps on a bilateral level and taxing all transfers at the source is an option," finance ministry spokesman Thorsten Albig told reporters.
He was confirming a threat voiced by Finance Minister Peer Steinbrueck, who told German television: "We have to put on the screws."
There is no doubt that this is the way to go.
And the same has to be done to all countries that are EU members or affiliates that are not cooperating by requiring automatic information exchang under the EU Savings Tax Directive, places that operate strict secrecy like Singapore, and places where it cannot be determined that effective money laundering controls are in operation. According to the recent NAO report on British Crown Protectorates that is most of them.
As Raymond Baker, author of Capitalism's Achilles Heel has always said, shutting down tax havens does not involve rocket science: it just requires political will.
I think that's now on the horizon.
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Richard,
The bankers are artful dodgers. If transfers to/from Liechetenstein are taxed, then the money will be routed via LGTs branch in Zurich or Singapore.
Secondly, the EU Savings Tax Directive must be amended to include legal entities such as private companies, Trusts and Foundations. The current outrage by EU Governments over the Foundations scandal will certainly facilitate the EU Savings tax amendments being approved shortly.
Tell me Richard if a tax evader stuffed his black money under his mattress, would you criticise the mattress?
Mark
You’re right on all counts
And from what I gather from Brussels the EU STD re-write is going to close the gaps
But the bankers will still have to be forced to tow the line. And that’s down to making it a condition of their bamnking licences in the big democracies.
Richard
Phil
THe question is so daft I almost deleted it to save you the embarressment.
But to answer, no of course I wouldn’t. 1) No law is broken anywhere. 2) The mattress make did not create it with the deliberate intent of stealing the taxation revenue of anotyher state.
Can you rise to the debate, or not bother?
Well I am a little surprised by your answer because I half thought that not only would you demand the mattress be burned but the business making the mattress also be shut down! However your answer is laughable, do you really believe that Liechtenstein has the “deliberate intent of stealing the taxation revenue of another state?”. The world has moved on, Richard, and your abhored “tax havens” have moved with it as they must to remain in business. They know black money is yesterday’s business and are very concerned not to take black money on – but they do not and are not able to detect a tax evader everytime.
Phil
I state quite empatically: the business model tax havens (not just Liechtenstein) is to steal taxation revenues from other states.
The aim of those who provide financial services from those places is to help them to do so.
These, I suggest are facts.
How else can the behaviour of havens in prmoting their abusive structures be explained? How else can the role of the financial services industry in promoting abuse behind the veil of secrecy they provide be explained.
Please give me a rational answer.
Richard