"Tax-dodging scandal embroils France" by Greg Keller | Associated Press, April 04, 2013
PARIS — For a president who came to power promising “irreproachability,” naming a lying tax-dodger to be chief tax collector was not the best move.
Now Francois Hollande is on the ropes, reeling from a blow delivered by his former budget minister, a man who admitted this week that he hid hundreds of thousands of euros from the tax man for decades and lied about it.
The lies by Jerome Cahuzac came before the National Assembly and to Hollande’s face.
These are the same guys screaming austerity at you.
Worst of all for Hollande was that he billed his presidency as a return to morality and simplicity after what his Socialist Party dubbed the “bling-bling” years of his conservative predecessor Nicolas Sarkozy. Now Hollande has handed Sarkozy’s opposition UMP party the club it needs to bash him and his Socialist government for the rest of his presidency.
Not that the UMP was waiting. They have been mercilessly haranguing Hollande and the Socialists for economic mismanagement after the government admitted it would not be able to trim the deficit as far as it had pledged.
Cutting that deficit by cracking down on tax-dodgers was part of Cahuzac’s job as Hollande’s budget minister.
That makes his surprise admission of a once-secret Swiss bank account — after months of denying its existence — embarrassing not only for him but for Hollande’s entire Cabinet. Many government ministers had taken to the airwaves to swear to Cahuzac’s trustworthiness after the muckraking website Mediapart reported his secret in December.
Related:
"The judicial inquiry was considered an embarrassment for the government. The tax rate has caused particular controversy in recent days because of a decision by French actor Gerard Depardieu to renounce his citizenship and move abroad to escape what he called an unreasonable fiscal policy. With much fanfare, Depardieu was handed a Russian passport Saturday by President Vladimir Putin in what was interpreted here as a jab at France."
And he jabbed US with asylum to Snowden.
Hollande made an unusual television appearance Wednesday to respond. Shaking his fist to appear forceful, Hollande called Cahuzac’s actions “unpardonable” and “an outrage to the Republic.” At the same time Hollande tried to deflect the blowback the scandal is causing his government with a reference to ‘‘the failure of one man.’’
Hollande sought to get ahead of the scandal by announcing reforms — including banning convicted fraudsters from public office and requiring all government ministers and members of Parliament to publish their personal finances.
It is not clear yet whether that will help. Hollande is among the least popular presidents in modern French history after less than a year in office. Recent opinion polls give him an approval rating of barely more than 30 percent.
That's what happens when a "socialist" is nothing of the $ort.
Journalist Edwy Plenel said what makes the Cahuzac scandal so threatening to the country’s democratic traditions ‘‘is the attitude of the whole political class,’’ which he said had rallied behind Cahuzac.
“His admission reveals to the French citizens the inadequacy of the majority of that world,” Plenel said.
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Also see: For 1st time, French leaders make financial data public
Hollande Can't Halt French Economic Collapse
Not that you would want to go back:
"Sarkozy in court over illegal donations suspicions" by Lori Hinnant | Associated Press, November 23, 2012
PARIS — Nicolas Sarkozy, the former president of France, went before a judge Thursday to respond to allegations that he illegally accepted donations from France’s richest woman to fund his 2007 election campaign.
The judge could decide whether Sarkozy, a polarizing figure who often faced criticism for cozy ties to the rich, will be charged with taking advantage of heiress Liliane Bettencourt, 90. Sarkozy has consistently denied all allegations.
Related: Phoqueing French Post
Bettencourt’s former accountant told police that she handed over $192,000 in cash that she was told would be passed on to Sarkozy’s campaign treasurer.
The sum, although it pales in comparison to US campaign funding amounts, shocked many French citizens because spending on political campaigns is tightly limited here. Individual campaign contributions to candidates are limited to about $5,921.
The inquiry centers on the finances of Bettencourt, the focus of a family feud over her fortune that ballooned in 2010 into a multilayered investigation and political affair. Bettencourt, who was reported to suffer from Alzheimer’s disease, has since been placed under legal protection.
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"Sarkozy charged in campaign finance case" by Jamey Keaten | Associated Press, March 22, 2013]
PARIS — A judge filed preliminary charges Thursday against former president Nicolas Sarkozy in a campaign finance case, formally placing him under investigation over allegations that he illegally took donations from France’s richest woman on way to his 2007 election victory.
The preliminary charges were issued against Sarkozy after he went through hours of questioning in a Bordeaux courthouse, according to the prosecutor’s office.
Just the thought makes one smile.
The former president is accused of ‘‘abuse of someone in an impaired state’’ in the case involving L’Oreal cosmetics fortune heiress Liliane Bettencourt, who is now 90.
Under French law, preliminary charges mean the investigating magistrate has reason to believe wrongdoing was committed, but allows more time to investigate.
Looks a lot like robbery!
The charges may later be dropped or could lead to a trial.
The investigation centers on the finances of Bettencourt, who was once the focus of a long-running family feud over her fortune.
Bettencourt, who was reported to suffer from Alzheimer’s disease, has since been placed under legal protection.
Investigating judge Jean-Michel Gentil was looking into conflicting accounts about how many times Sarkozy — a favorite of the mainstream political right — visited the home of Bettencourt in the run-up to his winning 2007 campaign for president, according to one lawyer.
Earlier in the inquiry, Bettencourt’s former accountant told police she gave $192,000 to the manager of Bettencourt’s fortune that was to be passed on to Sarkozy’s campaign treasurer.
Sarkozy’s lawyer and spokeswoman didn’t return calls, e-mails or text messages seeking comment.
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At least the French fix that corruption!
"Private finances get new public scrutiny in France" by Lori Hinnant and Sylvie Corbet | Associated Press, April 11, 2013
PARIS — President Francois Hollande of France ordered members of his Cabinet to publicly disclose their finances within days and asked lawmakers to do the same, saying Wednesday the country needed to learn from its mistakes after the budget minister was revealed as a tax-dodger with secret offshore bank accounts.
In a country uncomfortable with flagrant wealth or open discussions about money, only the president has to publicly list his assets. The new rules require Cabinet members to disclose their assets and value.
The rules will ultimately apply to all national lawmakers and Cabinet members, as well as former presidents who are automatically on France’s Constitutional Council, which rules on the constitutionality of laws. One former president on the council, Jacques Chirac, was convicted of corruption and Nicolas Sarkozy faces allegations he took envelopes stuffed with cash for campaign funding.
Ooooooh, Nico! Looks like jailo!
Hollande’s plan came after Jerome Cahuzac, the former budget minister, was forced to resign after an investigative journalism site uncovered evidence that he had secret accounts in Switzerland and Singapore. Some officials are releasing their financial details in response; others are unenthusiastic about an idea they say is being imposed without debate....
France and Slovenia are the only European countries that do not make lawmakers’ financial disclosures public, Transparency International said.
American disclosure rules cover just about everyone in high office, including members of Congress and senior staff, candidates for federal office, and members of the Cabinet, and Supreme Court justices. Since 1978 they have been required to disclose personal finances annually. In addition, since last year they need to report stock trades, to avoid conflicts of interest. The information is readily available online, but disclosure forms require only ranges; the higher the amount, the broader the range.
In China, high-ranking officials are required to report assets in internal reports, but there is no public declaration system and corruption is rampant, a sore spot for a public cynical about the Communist Party’s political monopoly. The leadership installed in November has taken largely symbolic measures, including imposing limits on expensive dining at the public’s expense and an end to the official motorcades people find obnoxious.
Looks like AmeriKan politicians could learn a thing or two from China!
In Britain, members of Parliament, including ministers, are required to publicly report their income from gifts and work outside Parliament but not the value of all their financial interests and assets. Ministers also must disclose any other involvements, including charities, which might conflict with their responsibilities.
Russian officials have three months to shed their overseas bank accounts or stocks under a new measure introduced by President Vladimir Putin, but some analysts have said that some Russian officials would still be able to keep money in accounts that are tied to offshore companies or under the names of proxies — a common practice in tax havens. Russia’s former Central Bank chief estimated that about $49 billion, which is equivalent to 2.5 percent of Russia’s gross domestic product, was wired to foreign accounts illegally last year.
Like Cyprus?
And rulers across the oil-rich Gulf Arab states have no obligations to disclose personal wealth, including many assets abroad in Europe, the United States, and elsewhere. Some hints come from their travels — the UAE’s president, Sheik Khalifa bin Zayed Al Nayhan, owns an estate in the Seychelles and the Saudi royalty has palaces in Morocco — but a full accounting is impossible.
The Forbes magazine list of billionaires released last month includes only a few from Gulf ruling families, including none from hyper-rich Qatar, where rulers never publicly disclose personal information such as wealth.
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I'm sure those tax-dodgers leading the European Union governments will get after those... tax dodgers?
PARIS — President Francois Hollande of France ordered members of his Cabinet to publicly disclose their finances within days and asked lawmakers to do the same, saying Wednesday the country needed to learn from its mistakes after the budget minister was revealed as a tax-dodger with secret offshore bank accounts.
In a country uncomfortable with flagrant wealth or open discussions about money, only the president has to publicly list his assets. The new rules require Cabinet members to disclose their assets and value.
The rules will ultimately apply to all national lawmakers and Cabinet members, as well as former presidents who are automatically on France’s Constitutional Council, which rules on the constitutionality of laws. One former president on the council, Jacques Chirac, was convicted of corruption and Nicolas Sarkozy faces allegations he took envelopes stuffed with cash for campaign funding.
Ooooooh, Nico! Looks like jailo!
Hollande’s plan came after Jerome Cahuzac, the former budget minister, was forced to resign after an investigative journalism site uncovered evidence that he had secret accounts in Switzerland and Singapore. Some officials are releasing their financial details in response; others are unenthusiastic about an idea they say is being imposed without debate....
France and Slovenia are the only European countries that do not make lawmakers’ financial disclosures public, Transparency International said.
American disclosure rules cover just about everyone in high office, including members of Congress and senior staff, candidates for federal office, and members of the Cabinet, and Supreme Court justices. Since 1978 they have been required to disclose personal finances annually. In addition, since last year they need to report stock trades, to avoid conflicts of interest. The information is readily available online, but disclosure forms require only ranges; the higher the amount, the broader the range.
In China, high-ranking officials are required to report assets in internal reports, but there is no public declaration system and corruption is rampant, a sore spot for a public cynical about the Communist Party’s political monopoly. The leadership installed in November has taken largely symbolic measures, including imposing limits on expensive dining at the public’s expense and an end to the official motorcades people find obnoxious.
Looks like AmeriKan politicians could learn a thing or two from China!
In Britain, members of Parliament, including ministers, are required to publicly report their income from gifts and work outside Parliament but not the value of all their financial interests and assets. Ministers also must disclose any other involvements, including charities, which might conflict with their responsibilities.
Russian officials have three months to shed their overseas bank accounts or stocks under a new measure introduced by President Vladimir Putin, but some analysts have said that some Russian officials would still be able to keep money in accounts that are tied to offshore companies or under the names of proxies — a common practice in tax havens. Russia’s former Central Bank chief estimated that about $49 billion, which is equivalent to 2.5 percent of Russia’s gross domestic product, was wired to foreign accounts illegally last year.
Like Cyprus?
And rulers across the oil-rich Gulf Arab states have no obligations to disclose personal wealth, including many assets abroad in Europe, the United States, and elsewhere. Some hints come from their travels — the UAE’s president, Sheik Khalifa bin Zayed Al Nayhan, owns an estate in the Seychelles and the Saudi royalty has palaces in Morocco — but a full accounting is impossible.
The Forbes magazine list of billionaires released last month includes only a few from Gulf ruling families, including none from hyper-rich Qatar, where rulers never publicly disclose personal information such as wealth.
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I'm sure those tax-dodgers leading the European Union governments will get after those... tax dodgers?
"G-8 summit turns focus to clampdown on tax-dodging" by Shawn Pogatchnik | Associated Press, June 18, 2013
ENNISKILLEN, Northern Ireland (AP) — World leaders at the G-8 summit declared Tuesday that governments must work together to close loopholes that allow multinational corporate giants to avoid paying taxes in their home countries.
Say goodbye to the campaign contributions.
In a joint statement at the conclusion of a two-day summit, leaders of eight of the world’s wealthiest countries said tax authorities should share information ‘‘to fight the scourge of tax evasion’’ and make it harder for companies to ‘‘shift their profits across borders to avoid taxes.’’
Was that before or after the rounds of golf?
But the key word in the document may well be ‘‘should’’ — the partnership made no formal agreement on any specific reforms. The agreed aspirations will be developed at this year’s G-20 summit.
Still, host Britain heralded the agreement as a good first step toward creating a new environment of corporate transparency. A key principle in the plan would require multinationals to declare how much tax they pay in each country.
Later Tuesday, the G-8 club of Britain, the United States, Germany, Russia, France, Italy, Canada and Japan are expected to issue declarations of common ground on ending the Syrian civil war and combating terrorism.
The G-8 tax initiative reflects widespread anger over the ability of foreign companies to funnel profits to tax-friendly countries.
British Prime Minister David Cameron began Tuesday with what his spokesman called a ‘‘brisk’’ swim in the chilly waters of scenic Lough Erne, the lake beside the Northern Ireland golf resort hosting the summit, before heading in to lead the summit’s second and final day.
British lawmakers have sharply criticized Google, Starbucks and other U.S. multinationals operating in Britain for exploiting tax rules by registering their profits in neighboring countries such as Ireland — which charges half the rate of corporate tax — or paying no tax at all by employing offshore shell companies.
Many of the world’s leading companies, ranging from Apple to the management company of U2, employ complex corporate structures involving multiple subsidiaries in several countries to minimize the tax bills in their home nation.
Isn't that what the politicians are doing?
One such maneuver, called the ‘‘double Irish with a Dutch sandwich,’’ allows foreign companies to send profits through one Irish company, then to a Dutch company and finally to a second nominally Irish company that is headquartered in a usually British tax haven.
The United States said it was committed to reforming the global accounting rules and collecting more of U.S. companies’ profits banked outside American shores.
‘‘The goal of cracking down on tax avoidance, bringing greater transparency to it, this is something we’ve pursued in the United States, and we agree with Prime Minister Cameron that we can work together multilaterally to promote approaches that achieve those objectives,’’ said Ben Rhodes, President Barack Obama’s deputy national security adviser.
Campaigners for greater tax transparency appealed to the G-8 to ensure that reforms benefited the poorest countries of Africa, South America and Asia as well as the rich west. Anti-poverty campaigners have stressed that shell companies are a key method of spiriting away funds from a country.
Cameron says Britain will lead by example by creating a registry of who really owns companies, and will consider making it public — an idea viewed skeptically by many other countries fearful of scaring companies out of their jurisdictions.
‘‘G-8 leaders must decide whether they want to shape the transparency revolution or resist the tide of history,’’ said Adrian Lovett, Europe executive director at development campaign group One.
However, Britain itself stands accused of being one of the world’s main links in the tax-avoidance chain. Several of the UK’s own island territories — including Jersey, Guernsey and the British Virgin Islands — serve as shelters and funnel billions each week through the City of London.
Britain is also a center for international finance and banks.
‘‘Of course Britain’s got to put its own house in order,’’ said Britain’s treasury chief, Chancellor of the Exchequer George Osborne, who address the G-8 meeting on corporate tax reform along with International Monetary Fund managing director Christine Lagarde.
Criminal Christine, the one who pays no tax?
Before the summit, Britain announced a provisional agreement with the finance chiefs of nine of its offshore dependencies and territories to improve their sharing of information on individuals and companies banking cash there....
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"EU steps up fight against tax evasion" by Juergen Baetz and Raf Casert | Associated Press, May 23, 2013
BRUSSELS — The European Union’s leaders took a major step in tackling tax-dodgers Wednesday by pushing to end bank secrecy across the bloc’s 27 members by the end of the year.
German Chancellor Angela Merkel hailed the agreement to set up an automatic exchange of bank information among the EU’s tax authorities — which has been long resisted by Austria and Luxembourg — as a ‘‘breakthrough.’’
European officials say tax fraud and evasion costs the 27-nation bloc’s governments an estimated $1.3 trillion a year at a time when much of the region is in recession and governments are forced to tighten their budgets.
One tactic used by individuals to get out of paying tax on income and investments is to hide money in another country’s bank. By sharing information on account-holders’ interest and other capital gains, the banks’ data will help authorities track down tax cheats.
Or make them move the money somewhere else.
Luxembourg and Austria, the two EU countries that pride themselves on their banking secrecy, have long opposed the initiative, blocking it at previous meetings. But the two governments gave in Wednesday after making sure the system’s introduction would be delayed until the end of the year to grant more time for negotiations on abandoning bank secrecy with non-EU countries such as Switzerland, Monaco, and Liechtenstein.
Related:
Liechtenstein may share bank data
Liechtenstein bank pays US $23.8m
IRS teams up with Australia, UK, to find tax cheats
The leaders did not give an exact starting time for the automatic information exchange, but cheered the agreement.
‘‘Those who thought they could escape taxes by picking tax havens, they have to realize today that the days of impunity are over,’’ said French President Francois Hollande.
Yeah, like your guy!
EU Council President Herman Van Rompuy, who chairs the leaders’ meetings, voiced confidence that a united EU has the clout to push for better tax practices around the world.
‘‘Tax evasion is something no country can solve on its own,’’ said Van Rompuy. ‘‘There is a momentum not comparable with other moments in the past because we are in an economic crisis, an unprecedented European crisis.’’
Related: Data may show an end to Europe’s recession
No need to worry now.
The leaders also discussed how to curb large companies’ aggressive tax planning, which allows them to take advantage of loopholes to redistribute their profits globally and minimize their payments.
In the meeting’s concluding statement, the EU called for rapid progress on the measures against ‘‘aggressive tax planning and profit shifting’’ and vowed to push ahead with closing legal loopholes.
The investigation of the tax tactics of multinationals is being carried out on a global scale. On Tuesday, members of a US Senate subcommittee grilled Apple chief executive Tim Cook over allegations that the company’s Irish subsidiaries help it avoid billions in US taxes. Cook insisted that the company’s overseas operations have nothing to do with reducing Apple’s US taxes.
See: An Apple For Lunch
Irish Prime Minister Enda Kenny on Wednesday denied Ireland was cutting special deals with multinationals. ‘‘Ireland has been one of the frontrunners, and will be, in regard to building a new international consensus,’’ he said.
The issue of taxes overshadowed the EU summit’s supposed main topic, guaranteeing a steady supply of energy while combatting high power prices.
EU authorities are worried that Europe’s industry is losing its competitiveness because energy prices there are significantly higher compared with other advanced economies.
I'm out of energy, folks.
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