Dec 19 2011

UK banks ‘cheat’ Europe in €600m tax scheme

Posted by: Nick Shaxson in: Thoughts

From the Bureau of Investigative Journalism, via TJN:

Some of the city of London’s biggest banks are behind a huge tax avoidance trade ‘cheating’ European countries of hundreds of millions of euros a year in a development that sheds fresh light on David Cameron’s decision to wield Britain’s EU veto to protect the Square Mile.

A two-month study by the Bureau has uncovered a discreet $102bn market in European shares whose ‘central’ purpose is tax avoidance. The Bureau’s analysis suggests the European tax loss – mainly to France, Germany and Italy – is up to €595m a year. The scale of tax avoidance will fuel further anger within the EU towards the Square Mile, where the vast majority of the trade known as dividend arbitrage is conducted.

And TJN’s opinions are involved:

“Markus Meinzer, applied researcher and analyst at the Tax Justice Network, said: ’This issue highlights a structural flaw in our current international financial system. Governments refuse to institute robust transparency and cooperation mechanisms in view of aggressive financial sector lobbying and because of the bizarre, yet largely unchallenged view of alleged benefits flowing from competition between states.’ “

Well said. Now read on.

one comment

Coco 3th March, 2012 8.06 am

Some interesting arictles, but I have a question on the US corporations and Taxes. There is a list stating revenue and indicating the companies got tax refunds. However, there is no statement about how much tax they did pay. Last year I got a tax refund also from the IRS nearly $2,000 but I also paid over $20,000. The refund was over payment based on multiple sources or revenue and income and my being sure enough was being witheld to cover taxes.The article leaves the impression that the corporations listed paid no taxes and got money back from the US Government. I am not sure that was the case. Can you clarify?

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