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Tax Havens: Q &

What is the difference between tax evasion and tax fraud?

fraud is considered an illegal act involving civil or criminal penalties. Examples of the price manipulation of trade between subsidiaries, false billings or for individuals, the failure to report income. The escape tax is a priori in the field of what is allowed. There are, however, between the two is a gray area in which there is a range of practices of tax avoidance by companies or individuals. The difference between fraud and tax evasion will then depend on the laws.

What are the criteria for defining a tax haven?

Tax havens are territories which are sovereign states or dependencies more or less independent of other countries (Jersey, Cayman Islands, Monaco, etc.). There is no consensus on their definition. The lists published by the OECD (Black, gray and then white as countries have pledged to meet OECD standards for the exchange of tax information or are already in compliance) with the G20, 2 April 2009, constitute a first welcome step to force some tax havens to relax the conditions under which they may waive their banking secrecy. The OECD approach, however, is insufficient because it does not take into account all mechanisms of opacity, such as concealing information about the beneficial owners of trusts. Similarly, it does not measure the effectiveness of judicial cooperation in tax havens very important for judges investigating cases of money laundering or embezzlement.

Which countries in Europe that need to preserve bank secrecy in tax havens?

About half of the 72 tax havens around the world are located on European territory. Luxembourg, Belgium, Austria and Switzerland guarantee registered customers in their banking secrecy protection, including in the case of a tax investigation of their country of origin. This secrecy was immovable property in those countries. In the UK, bank secrecy is not as protected but procedures for judicial and administrative cooperation are long and complex. Jersey, Guernsey or the Virgin Islands, notorious tax havens, are none other than the British Crown dependencies whose institutions are largely overlapping with those of London.

That may materially France against Andorra and Monaco?

Andorra is an independent state. But the links with France are likely to start by co-chair of this small territory which belongs to the bishop of Urgel, in Catalonia, but also the President of the French Republic. The Principality of Monaco undertakes to respect it in its constitution that its actions are consistent with the fundamental interests of the French Republic in the political, economic, security and defense. More specifically, in the context of the monetary agreement on the introduction of the euro, the Principality has to adapt its banking and financial legislation. The termination of agreements between these two territories to France would have a great effect, but above all address the use of tax havens which are available means of pressure: the French banks and multinationals.

How do I know if a company subsidiaries in tax havens?

In France, companies provide some information on the results of their activities and those of their subsidiaries in countries where they operate. Much of this information is available on the website of the national registry of commerce and corporations, which is a pay site: www.infogreffes.org . But France is an exception in the European Union. The Anglo-Saxon publication of accounts by companies that do not provide such information. Some data are available on http://www.corporatewatch.org . Finally, some companies do not hide their links with tax havens and mention on their website. magazine Alternatives Economiques has also just published a study on implementation of CAC 40 companies in tax havens ..

Why not call for the closure of tax havens?

The tax havens (PFJ) is a sovereign state. The advantages they offer in terms of financial deregulation, low taxation, ease of business formation and opacity correspond to a complex body of legislation and specific to each territory. But based on greater cooperation International, the big nations have the means of action, since half of tax havens are located on European territory or the Crown Dependencies British or the French government with regard Andorra and Monaco. Many opportunities exist and sanctions could be implemented quickly, such as the denunciation of these tax treaties that bind states to tax havens. Trying too hard to tackle tax havens, do not forget, however, those who make their fortunes: multinationals and banks. Tax havens are not used as scapegoats for diverting attention from the responsibility rich countries.