We’ve all talked and read about the idea and practice of offshore accounting to reduce taxation. Here is an article produced by a show called Backlight. Backlight appears to be a news journal show in the idea of Frontline by a Dutch public broadcasting organization known as VPRO.
This episode is titled: The Tax FreeTour.
To date it has only just over 22 thousand hits. Considering the effect offshoring plays in everyone’s life, I think more people need to see it. It is about 1 hour long taking a look at the places of tax havens and the structures to get there. I found it very interesting and highly encourage you to watch the entire episode. I have not seen another presentation as complete as this on the issue of off shore tax havens and the system.
They interview international experts including one who worked for KPMG: Richard Murphy
, accountant. He notes you need 3 things, banks, accountants and lawyers to have a tax haven and thinks accounts have gotten off easy. A past chief economist for the McKenzie Consultancy James S. Henry
who quantified the amount of capital parked in the off shore industry, $21 to $32 trillion year end 2010. Business Intelligence Investigator William Brittian Catlin
who’s job is to sort out the offshore links for investors. Ava Joly,
former French Judge, currently EU Parliamentarian investigating $1 trillion in lost EU tax revenue.
I did not realize, but these big corporations have special deals with nations such as the Netherlands regarding their taxation that they are not allowed to talk about. How convenient. The Netherlands has the most tax treaties in the world. Walmart has 6 entities there all with completely different unrelated names, yet does no physical business related to their core activity of retail sales in the Netherlands. Trust companies are the structures involved as they hold the mail boxes. $11 Trillion is routed through the Netherlands every year. Up to 20 times the Dutch GDP. 0.14% of the world’s population controls about 95% of the offshore money.
Do watch the entire show to get the full appreciation. There is so much more in it than what I highlight here. If your time is short then: To get a quick overview of the game, watch starting at 9:35 through 14:48 of the show and 32:24 to 33:00. To know about the people watch 20:00 to 22:54. To understand tax free zone use watch 25:40 to 26:50 and 27:19 to 28:00.
Here are four cuts from the show. The first two are to let people know what our Senate Banking committee hearings would look and sound like if there were more than just Elizabeth Warren.