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$21tn: hoard hidden from taxman by global elite

$21tn: hoard hidden from taxman by global elite
A global super-rich elite has exploited gaps in cross-border tax rules to hide an extraordinary £13 trillion ($21tn) of wealth offshore – as much as the American and Japanese GDPs put together – according to research commissioned by the campaign group Tax Justice Network. James Henry, former chief economist at consultancy McKinsey and an expert on tax havens, has compiled the most detailed estimates yet of the size of the offshore economy in a new report, The Price of Offshore Revisited, released exclusively to the Observer. He shows that at least £13tn – perhaps up to £20tn – has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Oil-rich states with an internationally mobile elite have been especially prone to watching their wealth disappear into offshore bank accounts instead of being invested at home, the research suggests.

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HSBC Reveals Problems With Internal Controls Jerome Favre/Bloomberg NewsStuart T. Gulliver, the chief of HSBC, said in a memo that the bank had “failed to spot and deal with unacceptable behavior.” 8:58 p.m. | Updated LONDON — HSBC, the largest financial institution in Europe, has become the latest British bank to reveal major internal-control problems, saying that senior officials would apologize to United States lawmakers next week for not cracking down soon enough on money-laundering activities in America. Exhaustive Study Finds Global Elite Hiding Up to $32 Trillion in Offshore Accounts Guests James Henry economist, lawyer, board member of the Tax Justice Network, and author of the report, "The Price of Offshore Revisited."

Conservative fantasies on the miracles of market Austin, TX - A central doctrine of evangelicals for the "free market" is its capacity for innovation: New ideas, new technologies, new gadgets - all flow not from governments, but from individuals and businesses, allowed to flourish in the market, we are told. That's the claim made in a recent op-ed in our local paper by policy analyst Josiah Neeley of the Texas Public Policy Foundation, a conservative think-tank in Austin. His conclusion: "Throughout history, technological advances have been driven by private investment, not by government fiat.

Timeline: Barclays' widening Libor-fixing scandal 6 February 2013Last updated at 11:51 Libor, the London inter-bank lending rate, is considered to be one of the most crucial interest rates in finance. It underpins trillions of pounds worth of loans and financial contracts. So, when Barclays was fined £290m in June last year after some of its derivatives traders were found to have attempted to rig this key rate, already weak public confidence in banks was harmed further. The scandal led to the resignation of both Barclays chief executive Bob Diamond and chairman Marcus Agius.

A scheme designed to net trillions from global tax havens is being scuppered British Virgin Islands, a tax haven. The UK is said to be working with the Swiss to frustrate global transparency on taxation. Photograph: Neil Rabinowitz/Corbis IMF continues with its wage-cutting line In November 2015, the IMF released an IMF Staff Discussion Note (SDN/15/22) – Wage Moderation in Crises: Policy Considerations and Applications to the Euro Area – which purports to measure “the short-run economic impact of wage moderation and the implications for policy in the context of the euro area crisis”. It juxtaposes the impacts of the so-called internal devaluation approach with the impacts of Eurozone monetary policy. It recognises that the euro zone countries cannot use exchange rate depreciation to boost domestic demand but argues that instead, “lower nominal wage growth … and lower inflation or higher productivity growth relative to trading partners is needed”. The paper presents the standard mainstream arguments that: 1) wage cuts improve employment through increased competitiveness; 2) interest rate cuts stimulate overall spending; 3) quantitative easing stimulates overall spending. The IMF paper conducts an experiment whereby it conducts a simulation where there is a:

Private banks have failed – we need a public solution The greatest danger of the rate-fixing scandal now engulfing the City of London is that it will be managed and defused in the usual way, and nothing will really change. Tuesday's forced resignation of Bob Diamond, the Barclays chief executive, follows well-worn procedures for dealing with crises that potentially threaten those in power: denounce the worst offenders, let a few symbolic heads roll, set up an inquiry under a safe pair of hands, and tweak the regulations to prevent a repetition of the most egregious misdemeanours. That's been the pattern of the past few years as Britain's establishment has lurched from the disaster of the Iraq war to the disgrace of parliamentary expense fiddling and media phone-hacking (though in the case of Iraq, the only heads to roll were BBC executives and an army corporal). But we can't afford to allow such political dereliction again.

Tax haven There is no generally accepted definition of what a tax haven is, but activities that are commonly associated with such places range far beyond tax. Some definitions do focus purely on tax: for example, a widely cited academic paper describes a tax haven as a jurisdiction where particular taxes, such as an inheritance tax or income tax, are levied at a low rate or not at all.[1] Other definitions refer to a state, country, or territory which maintains a system of financial secrecy, which enables foreign individuals to hide assets or income to avoid or reduce taxes in the home jurisdiction. Some refer to "secrecy jurisdictions" as an alternative to "tax havens," to emphasise the secrecy element, and a Financial Secrecy Index ranks jurisdictions according to their size and secrecy. [2] Earnings from income generated from real estate (i.e. by renting property owned in an offshore jurisdiction) can also be eliminated in this way. Definitions[edit] There are several definitions of tax havens.

Men's Earnings Haven't Just Stagnated Over Past 40 Years January 15, 2012 | Like this article? Join our email list: Stay up to date with the latest headlines via email. Catherine Crampell at The New York Times Economix blog pointed to a disturbing article Thursday. It shows that full-time male workers in the United States were making less in real, that is, inflation-adjusted, dollars in 2009 than they were in 1969.

The offshore trick: how BVI 'nominee director' system works Nominee directors are not illegal and can sometimes be useful, for example in preparing "off-the-shelf" ready-made companies. But the legal conjuring trick behind the British Virgin Islands nominee system opens the way to abuses. It depends on three pieces of paper:

U.S. Profits Per Employee Jump As Raises Remain Modest: Study Companies are squeezing greater profits out of their employees, even as layoffs rise and the outlook for hiring and raises remains mixed, a recent study has found. Profits per employee have gone up for the second year in a row, according to a study by the financial analysis company Sageworks, suggesting that companies continue to get more out of their employees as they slash their payrolls in an effort to get leaner. The findings also suggest that profits have been rising despite the lack of a corresponding increase in wages. The private companies surveyed by Sageworks reported that their profits per employee climbed to $15,278.72 in 2011 from $12,488.02 in 2010, a rise of about 22 percent for the year. The figures for 2010, in turn, represented an increase of about 24 percent from the 2009 profits per employee, which were $10,045.56.