Free Newsletters - Space News - Defense Alert - Environment Report - Energy Monitor
. Earth Science News .




POLITICAL ECONOMY
EU mulls tougher stand on tax dodgers
by Staff Writers
Brussels (UPI) Apr 5, 2013


disclaimer: image is for illustration purposes only

The European Union's promise of a vigorous crackdown on tax dodgers in the aftermath of an unpopular Cyprus bailout is unlikely to stem the outflow of capital from the West's interconnected financial networks to areas still beyond easy reach of European law.

Germany was among the first European governments to hail the release of leaked documents purporting to show how offshore banking havens are used by tax dodgers to shield funds from the taxman.

However, most tax havens exposed in the leak by the International Consortium of Investigative Journalists are within the wider jurisdiction of Western governments.

Analysts say many more banking havens that are beyond the West's reach are yet to be accessed, and that's where much of the capital flight could be headed.

ICIJ collaborated with The Guardian and the BBC in Britain, Le Monde in France, Suddeutsche Zeitung and Norddeutscher Rundfunk in Germany, The Washington Post, the Canadian Broadcasting Corp. and 31 other news organizations to analyze data from 2.5 million documents related to more than 120,000 offshore companies and trusts.

Although impressive, the global picture of money laundering and tax avoidance revealed as a result is by no means complete and enterprising financiers are already at work in locations in Asia, Africa and Latin America, which are protected by lack of connectivity.

In the same way that the 2008-09 financial crisis was least felt in countries that had low connectivity to international markets, banks that are out of the loop are most likely to benefit from the flight of capital from Europe and exposed tax havens.

Indian banks recently expanded branches in known tax havens and more transactions are headed to Seychelles, east of the African mainland in the Indian Ocean, and Vanuatu in the Pacific.

In the Cyprus crisis that led to levies on bank deposits, funds belonging to influential individuals were siphoned away in advance of the EU-Cyprus bailout deal. The Cyprus rescue terms spread alarm across Europe and unspecified sums have moved out of the EU members through circuitous routes to new destinations.

The ICIJ revelations mean more funds will be moved out of the marked havens into destinations that will be harder to pinpoint.

The rise of alternatives to the U.S. dollar, particularly the Chinese yuan, has opened new possibilities for financial havens that are practically impenetrable from the West.

Banking operations in Central Asia, although nominally within the Russian sphere, have been opaque for decades.

Financial centers in Dubai, Tehran, Karachi, Mumbai and Nairobi are used to conduct dense discretionary operations that cannot easily be regulated. The Asian and African regions also have a thriving barter trade that makes movement of cash extremely hard to monitor.

German Finance Minister Wolfgang Schaeuble said fighting tax evasion was an "endlessly laborious" work, and called for more joint EU action against tax evasion.

In the Cypriot banking crisis Germany attacked the Cypriot offshore banking model but said little about tax havens in mainland Europe, including Luxembourg and Liechtenstein.

German pressure for Swiss transparency contrasts with relatively soft approach toward former Soviet bloc countries of the European Union's eastern flank, a growth area for organized crime.

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
Dismal US jobs report, Iran talks weigh on oil
New York (AFP) April 5, 2013
Global oil prices fell further on Friday after a dismal US jobs report renewed concerns about the strength of the world's biggest economy and traders kept an eye on Iran nuclear talks. New York's main contract, West Texas Intermediate (WTI) for May, closed at $92.70 a barrel on the New York Mercantile Exchange, down 56 cents from Thursday. Brent North Sea crude for delivery in May dived ... read more


POLITICAL ECONOMY
Fukushima fuel cooling system stops again:TEPCO

Environmental policies matter for growing megacities

Finland's Fennovoima in talks with Rosatom over reactor

US drivers talk and text as much as ever

POLITICAL ECONOMY
Theory and practice key to optimized broadband, low-loss optical metamaterials

CWRU-led scientists build material that mimics squid beak

Watching fluid flow at nanometer scales

Michigan Tech researcher slashes optics laboratory costs

POLITICAL ECONOMY
Temperature difference between hemispheres could shift rainfall patterns

Chinese foreign fisheries catch 12 times more than reported

Shark tooth weapons reveal missing shark species in Central Pacific islands

Tiny Grazers Play Key Role in Marine Ecosystem Health

POLITICAL ECONOMY
New models predict drastically greener Arctic in coming decades

Ice cores preserve 1,800 years of climate

2013 Wintertime Arctic Sea Ice Maximum Fifth Lowest on Record

Thin clouds drove Greenland's record-breaking 2012 ice melt

POLITICAL ECONOMY
'World's greatest' chef Adria seeks digital legacy

China paper says farm sector raises bird flu risk

Italy bids to close gap in wine exports to China

Birch juice season takes Latvia by storm

POLITICAL ECONOMY
Argentina floods caused $5 billion in damage

Italy marks fourth anniversary of L'Aquila quake

7.1-magnitude quake causes panic in Indonesia's Papua

Quake shakes buildings in Manila

POLITICAL ECONOMY
Thousands in Darfur seek protection after fighting

Congolese pygmy seeks to enlighten his kin

Guinea-Bissau ex-navy chief held on US drug charges

S.Africa pulls troops from C.Africa after deadly firefight

POLITICAL ECONOMY
Women and men perform the same in math

Scientists identify brain's 'molecular memory switch'

Researchers successfully map fountain of youth

First evidence of Neanderthal/human mix




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement