European Parliament: UK and US are global hubs for money laundering, tax evasion
brusselstimes.com
brusselstimes.com
I recall not so long ago a prominent European bank's branch in Lithuania making headlines for very explicitly laundering cash.
Then there's the whole ex dividend fiasco. There's a couple of frauds with Steinhoff, Wirecard... I mean seriously all you got to look is a bit deeper..
More likely this is a political stunt either against the UK or for the banking union as one of the things it can solve for (a common anti fraud system, etc)
[1] https://www.lrt.lt/en/news-in-english/19/1240097/lithuania-c...
EDIT the Netherlands is another one that flies under the radar quite well - Lichtenstein I believe has an up and coming financial services industry too
How may EU citizens, especially EU elites, hide there money in those places?
come off it. They're very much jacked into the EU economy.
"The Netherlands is still one of the world's main tax havens, coming in fourth place on Tax Justice Network's biennial ranking of tax havens. Only the British Virgin Islands, the Cayman Islands and Bermuda scored worse than the Netherlands when it came to tax avoidance."
https://nltimes.nl/2021/03/09/netherlands-worlds-4th-biggest...
"Bermuda? Guess again. Turns out Holland is the tax haven of choice for US companies"
https://thecorrespondent.com/6942/bermuda-guess-again-turns-...
"The Coronavirus exposes the Netherlands as a tax haven – again"
https://www.euractiv.com/section/economic-governance/opinion...
If you're actually a legal resident of the Netherlands well that doesn't help you at all since the Netherlands gov't has complete visibility into financial transactions within the country.
Same with the US. Great place to hide money if you're from certain countries since Uncle Sam doesn't give two shits if some countries can't collect taxes.
Running your own BV was always stupidly expensive.
I doubt this is what people are talking about when they say the Netherlands is a tax heaven. Italy and Spain have similar schemes.
For the citizen, it is indeed, a country with one of the biggest individual Total Tax loads in the world. You get a flurry of them and its not really progressive. You are basically paying into one of three tax brackets and the top rate of 49.5 percent comes very quickly for anything above to €68,507 ( aprox 80,000 USD )
The current world top countries by income tax brackets are:
Ivory Coast 60% Finland 56.95% Japan 55.97% Denmark 55.9% Austria 55% Sweden 52.9% Aruba 52% Belgium 50% Israel 50% Slovenia 50% Netherlands 49.5%
As I do not believe anybody in the Ivory Coast is paying those tax brackets...and as Aruba is part of the Kingdom of the Netherlands :-) you are definitely in the top ten but that is only half of the story. After you go through all of these:
Income tax (inkomstenbelasting)
Payroll tax (loonheffing)
VAT sales tax (BTW / omzetbelasting)
Import tax (douane)
Motor vehicle tax (motorrijtuigbelasting)
Inheritance tax (erfbelasting)
Gift tax (schenkbelasting)
Transfer tax (overdrachtsbelasting)
Most towns even have a Dog tax! ( but funnily enough...not a Cat tax...)
https://www.denhaag.nl/en/taxes/dog-tax.htm
"... It makes no difference if the dog is big or small..." , what means they actually thought about it.
Believe it or not, there is even an Exit Tax if you decide to say its too much, and you want to leave the country with your assets. You then get all of the local ones:
property tax
waste collection charges
street cleaning/maintenance
sewerage tax
movable property tax (e.g., houseboats, portable kiosks)
The system is organized for the corporations, and special tax structures organized by the big four, and other organizations close to to the Dutch political system.
"...There is no revolving door policy for departing Dutch civil servants. Employees are free to take up any new position once they've served their notice period..."
Old sample example: https://corporateeurope.org/en/revolvingdoorwatch/cases/niko...
Its particularly for Foundations and the rich who can afford it, like for example the Ikea foundation based in the Netherlands:
"IKEA’s Flat-Pack Tax Scheme: a Corporate Structure Designed to Facilitate Profit-shifting and Tax Avoidance"
https://medium.com/@jurgeng/ikeas-tax-scheme-a-corporate-str...
Ivory Coast 60% Finland 56.95% Japan 55.97% Denmark 55.9% Austria 55% Sweden 52.9% Aruba 52% Belgium 50% Israel 50% Slovenia 50% Netherlands 49.5%
It doesn't help that tax systems are so complicated that it can be almost impossible to make meaningful like-for-like comparisons in discussions like this.
For example, the UK isn't listed there, yet in reality the way our system works creates brackets where some people do have an effective marginal income tax rate over 60%. Worse, the system isn't entirely progressive, because those brackets don't coincide with the final marginal rate of income tax for those with the highest incomes.
Rather like the Dutch, for those of us living in the UK and those of us operating small businesses here, who are paying the full intended tax rates, it's frustrating to see the games played by the huge multinationals and UHNW individuals that are clearly forms of tax avoidance, and to see the UK labelled as a tax haven. I doubt anyone living near me feels like they're benefitting from an unusually low-tax economy right now!
Disclaimer: Not associated with the site in any way.
The EU Commission took Ireland to court (and lost) about their secret sweetheart tax deals with Apple so it appears they are well aware of what happens within their own borders.
https://curia.europa.eu/jcms/upload/docs/application/pdf/202...
> By its decision, the Commission considered that the tax rulings in question constituted State aid unlawfully put into effect by Ireland. The aid was declared incompatible with the internal market. The Commission demanded the recovery of the aid in question. According to the Commission’s calculations, Ireland had granted Apple 13 billion euro in unlawful tax advantages.
So the EU court found the EU member did nothing wrong.
> so it appears they are well aware of what happens within their own borders.
I don't think the parent was complaining that the EU did not know what goes on within their borders.
This is a very important step to improve Europe economy. The more corrupt is a government the more difficult is for business to thrive. Tax evasion gives an economic advantage to law breakers that cheat instead of competing in an open market to earn that money.
> Two thirds of the shell companies in the Pandora Papers are located in the British Virgin Islands, which has never featured on the EU blacklist and still are not included in the list.
The Pandora Papers are a strong argument to increase vigilance over the activity in such countries. That countries are helping to steal EU citizens money for a part of the loot.
I hope that UK and USA help to stop crime and return citizens what is theirs money.
To steal from other EU members is no competition it's just unethical. Small countries can live just by cashing a small part of the money that is rightly owned by countries with more population. That needs to be fixed.
Also obviously the EU can put in place any kind of controls it deems necessary on the common market. It’s sovereign in this matter after all and tax dumping is mostly helping foreign-based multinational corporations.
I used to work for a cloud provider that helped bootstrap business projects, research and start-ups, first in france then in the later years, all over europe.
Do you know how long it took to start a service company in France in 2018? Half a day. And the government own service that help a lot with online identity and paper filling wasn't even online yet, i'm pretty sure that if i want to start a limited company, and make this company employ myself as a freelancer/self-employed (don't know the exact translation), i'd be able to do it in a day.
What would be the benefit for the EU to enter this shit race with the UK and the US?
Only companies would be the ones benefiting from this with yet another hub with lower taxes. It's a literal shit race if everyone starts playing it, and only works if few play it.
So good for the EU parliament to publicly denounce this and exposing the shit game the UK and US are playing. Basically they're both being cheats in the global economy - and you can't be both a cheat and a role model, that's being a hypocrite.
Are all the EU countries abiding by fair rules? No. But what will be the trend? To have more tax heavens in the EU or to start to purge them? All points to the second option.
Thanks for quickly summarizing why nobody should take EU pronouncements on this seriously
feels good having your tax money used to keep family with their children under 24/7 surveillance (even inside of their "homes"!), doesnt it?
and there isn't even anything people can really do about it. really lovely.
For example one of the most prominent leftist french politicians, ex- director of the IMF I think, was caught the hand in the cookie jar with tens of millions stashed away, while years ago he was publicly saying that tax evasion should be fought.
We're talking hundreds of politicians.
It's estimated 3% to 5% of the world's GDP is linked to criminal activites: maybe we should the priorities right, and focus on politicians-thieves and drug dealers before hating on those among the rich who legally put their money where they think it's safer? (many in these leaks have done absolutely nothing wrong and it would be nice if everything was not conflated)
Money laundering is illegal. Stealing tax payers money and hiding it is illegal. Selling drugs is illegal. Legally evading taxes is, in many cases, fully legal (tax evasion / tax avoidance: whatever you call it, nothing forces you to pay the most: if you find a legal way to pay less, more power to you as long as you're not a criminal).
That's a highly deceptive way to characterize tax evasion.
Dirty money coming in does not need to be functionally different from clean money. Only thing that matters is what it's spent on. Why should a country refuse "dirty" foreign investment?
Because you are encouraging corruption which is a net loss for everybody apart from the perpetrators and their banks.
Most countries allow you to import products of slave labour, even the US only banned this a few years ago.
Many western countries seem to be okay with slavery they can see too, read the thirteenth amendment of the US constitution for an example.
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The secretary of Mr. Alexander Lukashenko called. It seems they are quite interested in discussing new business opportunities. The would like to meet as soon as possible.
It seems he is quite busy, so he suggested to meet in a house of a friend: Ilham Aliyev in London. It seems there are some well know VIPs in the UK that can help facilitate this:
https://newrepublic.com/article/120691/tony-blair-does-pr-re...
Do not forget the call with Mr. Putin on Tuesday morning. He wants to sell his Monaco flat.
PS: We have some old accounts that used to belong to Robert Mugabe but they are a pain to manage. I suggest we close those and take our losses.
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These people are criminals who should have their day in court, but I don't understand how that is supposed to justify financial mass surveillance.
Instead of complaining about money laundering, why doesn't the EU send their goons to render Putin & co and put them on trial if they're so bad? (Oh yeah, it's because that's not something they actually want to do)
E: HN throttled my reply to belter so I'll just put it here.
Corrupt oligarchs wasting their money on London real estate still injects money into the economy, and is likely to transfer those "dirty" funds to developers owned by more pleasant people than Lukashenko. Those people will presumably use them for nicer purposes than propping up their dictatorships.
"...Only thing that matters is what it's spent on. Why should a country refuse "dirty" foreign investment?..."
No one's advocating financial mass surveillance - only surveillance of the 1% richest people and corporations.
And this is the rational results of generations of criminality, tax evasion, money laundering, and outright bribery of public officials from this group.
Are you really claiming that most economists think criminality is to be encouraged?
Your stance is morally wrong. Law-abiding people and countries should not be facilitating crimes by laundering their proceeds.
These people should be prosecuted, but financial surveillance isn't the solution. Money laundering isn't the problem, the actual crimes are.
Why the heck are there so many people defending tax frauds? It's not as if we are talking about your mom&pops shop here; these are multinational corporations that leverage breakdowns in international tax laws, launder moneys from criminal activities and
They are breaking the law in the worst case and are twisting it beyond recognition in the worst case, using technicalities to give themselves 'Get out of societal obligations" cards. These are anti-social behaviors by nonhuman entities (person hood for legal constructs; what an abomination!) that damage the cohesion and peace in our countries. And yet some people defend these practices, some almost praising these cheats' efforts as nobly defending ... freedom?
What goes? Can anyone explain? I'm thoroughly befuddled.
How many years out of the ~50 that the UK was a member of the EU (or predecessors) was this fact well known to the EU?
What makes you say this?
Didn’t know how much of it to believe but I get the feeling quite a bit of it is probably true.
It's hilarious how many people pretend to support a right to privacy until it's about other people's money. Always gotta drag down instead of rise above.
A couple of people breaking the law is no excuse for financial mass surveillance (or any other kind of mass surveillance). Arguing against mass surveillance is not the same as arguing for free passes, no matter how you might like to twist it.
Maybe soon we will finally go back to the Star Chamber days, can't wait. /s
If the EU just literally taxed big corps with normal terms, it would make a big difference.
Decriminalise drugs and criminals will lose most of their revenue.
They are already into ransomware anyway.
And maybe decriminalize human trafficking too?
All problems solved right?
It will mean that an incredible amount of money spent on policing can be used on education of what drugs are and what they do to you. The people that have a job to police the lives of others are scared of this because they will be without a job. As their job is basically not needed they are scared of losing their welfare and privilege.
Then nobody will loose any revenue right? Because that was the parent's argument.
>It will mean that an incredible amount of money spent on policing can be used on education of what drugs are and what they do to you
Ah yes the education argument...it never works, you cannot throw money at such a problem.
Sure it works. Look at Holland, does it have a substantially higher or even a higher incidence of drug use than e.g. neighboring countries? I don't think so. Look at Portugal, a country that reduced drug abuse through decriminalization. That's just a fact.
It's a complex issue and there might be cases where it doesn't work, but to say it never works is clearly wrong. If we talk about a democratic society, then it can't rely on brute force for the people's own good, at least not for an extended period of time. A ban would be OK early on, but eventually people need to know themselves what's wrong and crucially why. This goes beyond drug use and is basically the only way to have a democratic society.
As it is, the ban on drugs is mostly a tool of oppression. Especially in countries like the US, that is financing a predominantly white police force to, well, police and subject minorities to a different standard than the majority.
Look at the top-comment, you have obviously NOT read all the comments:
>>Decriminalise drugs and criminals will lose most of their revenue.
>Sure it works. Look at Holland, does it have a substantially higher or even a higher incidence of drug use than e.g. neighboring countries? I don't think so.
Yeah look how good it works:
https://pbs.twimg.com/media/FBva8anWQBk1Ptr?format=jpg&name=...
>Cheese, Cocaine and Killers: how holland became a mafia paradise through lax drug policies.
It's from this month.
Another?
https://www.addictioncenter.com/news/2020/01/netherlands-nar...
And here some taste of reality:
https://www.aa.com.tr/en/europe/netherlands-belgium-switzerl...
>Netherlands, Belgium, Switzerland tops in drug use in Europe
Comparing Montenegro (the poorest country in europe and second most corrupt one (just Albania is worse)) to holland need some massive stretch (shame on you)...and it's beyond truthful argumentation. Just read the Spiegel...and why Holland is a paradise for the Mafia.
That people get addicted, which is a mental illness, or they use substances you personally don't approve off?
Caffeine would never be a non-prescription medication had it been invented today.
Making money by making people ill?
>substances you personally don't approve off?
Do you approve the use of Crack?
>Caffeine would never be a non-prescription medication had it been invented today.
BS, again and again its proofed that normal amounts of Coffee/Tee is a healthy thing.
The difference between the drug trade and human trafficking is that it may be argued that the former does not involve harm of others. The latter could never support such an argument.
You can ask afghan puppy farmers about that, and every single crack/heroin user if it's not harm-full, just decriminalize it, solves a really minor problem.
You can see it with prostitution, it's legal in most of Europe, however it's still in the hand organized crime groups, nothing has changed.
It's slightly less bad for sex workers, since their activity not being a crime means they can theoretically go to the police, which is better than nothing.
True, at least sex workers can go to the police if something happens, but as i wrote in another comment, it solves a ~minor problem and is not the to-go-and-solve-everything-solution.
Proposing arguments against it won't change that.
I'm sure a lot of MEPs themselves are no different from their MP and Congressmen counterparts.