Category: Corruption

LatAm: corruption, tax evasion fuel inequality

These crimes hinder the development of societies, prevent strengthening the legitimacy of democracy SANTIAGO — Corruption and tax evasion are flagrant violations of human rights in Latin America, where they contribute to inequality and injustice in the countries of the region, according to studies and experts consulted by IPS. “Tax… – Continue reading

Dirty money: 19 UK firms alleged ‘complicit’ in $20bn laundering scam

Some 19 British firms are at the center of an investigation into in a mammoth global money-laundering operation. The scheme was allegedly contrived to make $20bn (£12.5bn) worth of ill-gotten gains appear legitimate. The illicit funds are thought to have originated from criminal gangs and corrupt officials across the globe,… – Continue reading

Compliance in China for Foreign Businesses

Compliance is China’s latest Hot Topic. Until recently, many Western managers accepted that some flexibility on legal issues was needed to thrive in the complex Chinese legal environment. Practices to strengthen relationships such as luxurious dinners and karaoke evenings, sponsored travel, red-pocket money and the like, have often been regarded… – Continue reading

What Yahoo and Nokia’s Offshore Cutbacks Tell Us About India

Yahoo! just made about $9 billion in cash from Alibaba Group’s initial public offering, and investors are licking their lips at the thought of how Marissa Mayer might spend it. Snapchat? AOL? Well, here’s one area you shouldn’t expect her to invest in: offshoring more jobs to India. The company… – Continue reading

Indonesia Tax Boss Wants to See Bank Records in Revenue Push

Indonesia’s tax chief is pushing for access to personal bank accounts and wants to track car and home purchases in his fight to catch evaders and boost revenue. The department is asking parliament to amend the banking law to give it the right to get lenders to reveal customer account… – Continue reading

Trillion Dollar Scandal – the biggest heist you’ve never heard of

The World Bank analysed the world’s biggest corruption scandals over that past two decades. Seventy per cent involved anonymous shell companies Take a guess at how much is lost to developing countries each year through international corruption? $1 billion, maybe $10? Even more? The shocking truth is that $1trn a… – Continue reading

FIFA panel member is stood down during Cayman Islands corruption probe

A member of FIFA’s financial watchdog panel has been temporarily suspended while implicated in the Cayman Islands corruption investigation. Canover Watson was questioned last month by police anti-corruption and financial crime units in his native Cayman Islands on suspicion of corruption and money-laundering. He denies wrongdoing. FIFA said audit committee chairman… – Continue reading

British Virgin Islands suffers amid push against money laundering

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email to buy additional rights. The British Virgin Islands has long attracted Chinese companies looking to… – Continue reading

Illicit financial flows curtail economic growth

ALTHOUGH Finance minister Patrick Chinamasa’s 2014 Fiscal Policy Review statement announced last week seeks to widen government’s revenue inflows, analysts contend that there is need to seriously curb illicit financial flows (IFFs) from Zimbabwe if the economy is to experience the anticipated growth. Illicit financial flows through tax evasion, bribery,… – Continue reading

U.S. tax evasion and money-laundering sting nabs Canadians

A contingent of so-called “corrupt clients” from Canada have been caught in the net of a massive fraud investigation by the FBI and the U.S. Attorney, a source close to the investigation told CBC. CBC News reported Wednesday that two Canadians, along with four others, were indicted in the U.S…. – Continue reading

FIFA audit panel asks member quizzed in Cayman Islands corruption case to explain his arrest

FIFA’s financial monitoring panel has asked one of its members to explain his arrest in a corruption case. Canover Watson was detained in his native Cayman Islands on Aug. 28 by police anti-corruption and financial crime units. Local media reported that Watson was quizzed about alleged money laundering and abuse… – Continue reading

No place to hide from the taxman – Seychelles signs automatic tax information sharing agreement

(Seychelles News Agency) – The Seychelles has become an early adopter of an agreement launched by the G5 group of countries – the United Kingdom, France, Germany, Italy and Spain – to automatically disclose details of individuals who have taxable income kept in offshore accounts. According to a press statement by Her Majesty’s… – Continue reading

G20 must halt global game of tax avoidance by fighting anonymous shell companies and tax havens

Mention financial secrecy at the dinner table ten years ago and you would most likely have been greeted with a blank stare. Tax evasion in particular was a subject matter deemed largely the preserve of accountants and frustrated FBI men seeking circuitous ways to prosecute mobsters. These days, though, the… – Continue reading

India losing $1 trillion annually to corruption: Study

Last year, $20 trillion disappeared into secret off-shore tax havens across the world — an amount that can save 3.6 million lives annually. A study conducted by the UK-based NGO, ONE, has found that corruption, tax evasion and corporate malpractices is leading to monetary losses of the scale that could… – Continue reading

‘Web of corrupt activity’ costs poorest countries a trillion dollars a year

Anonymous shell companies and shady natural resources deals targeted in report that calls on G20 to drive for transparency G20 finance ministers and central bank governors in Moscow, July 2013. ONE is calling on the group to stop the corruption that is costing the developing world billions. Photograph: Kirill Kudryavtsev/AFP/Getty… – Continue reading

Mauritius: The Privy Council Interprets Key Provisions Of Mauritian Anti-Money Laundering Legislation

In Beezadhur v The Independent Commission against Corruption and anor [2014] UKPC 27, the Privy Council dismissed an appeal by a retired nurse who was charged with and found guilty by the Intermediate Court of Mauritius of five offences under sections 5(1) and 8 of the Financial and Anti-Money Laundering Act 2002… – Continue reading

Our Swiss dilemma

With new laws in place, recovery from Swiss banks can be little easier provided the government shows sincerity in taking action against tax dodgers   Finance Minister Senator Ishaq Dar in recent days has expressed the government’s firm conviction to bring back untaxed money of “US$ 200 billion” stashed in… – Continue reading

Africans call on rich nations to crack down on money laundering in new drive against illicit flows

WASHINGTON (Thomson Reuters Foundation) – The world’s richest nations must toughen their laws against money laundering, tax havens and tax evasion if a global drive against corruption and illicit finance is to deliver results, senior African diplomats said on Thursday. “There are two sides to this coin. If there were… – Continue reading

Corruption scandal could set back Catalonia’s independence bid

Ex-Catalan premier Jordi Pujol is to be stripped of his honorary privileges after admitting to 34-years’ worth of tax evasion. He ruled the region for 23 years and as such earns an annual pension of over 86,000 euro; has an official car; and is honorary president of the CDC pro-independence… – Continue reading

Tax deal needs framework

The 2010 Foreign account tax compliance act represents a significant initiative by the United States to tackle offshore tax evasion. But it has not been popular with Chinese authorities, especially the banking sector, in part because it was considered an extra burden. Why should it obligate itself to do such… – Continue reading

Millionaire Official Sues Navalny Over Offshore Report

A Moscow City Hall official confronted with allegations of illegal business activity has sued his accuser, whistle-blowing blogger and opposition activist Alexei Navalny. Deputy Mayor Maxim Liksutov, who oversees transportation in Moscow, announced via Facebook on Thursday that he had sued Navalny for an unspecified sum. Data made publicly available… – Continue reading

Swiss say working with Egypt, Ukraine to recover stolen assets

GENEVA, June 4 (Reuters) – Switzerland is working hard to prevent ill-gotten assets of corrupt leaders from reaching Swiss bank coffers and an international clampdown on tax evasion could help the campaign, a senior Swiss foreign ministry official said on Wednesday. Swiss authorities are already working closely with Egyptian counterparts… – Continue reading

Africa’s Poorest Nations Lose Billions to Complex Tax Evasion Schemes

African countries are losing up to 12.7% of their national GDP due to shady practices in international trade. Global Financial Integrity, a Washington DC-based think-tank, reports that $542bn (£321bn) worth of capital was lost from Africa in illicit capital flows and estimates that almost 80% of this coming through “trade… – Continue reading

Asian logging companies ‘use British islands for tax dodging’

Calls for crackdown as investigation finds huge Indonesian corporations evading tax through network of secret shell companies in British Virgin Islands and other tax havens Giant Asian logging companies that make billions from destroying rainforests use a labyrinth of secret shell companies based in a UK overseas territory, the British Virgin… – Continue reading

Developing countries ‘lose taxes to profit shifting’

STUDIES show multinationals shift profits of $365bn a year from developing to developed countries through transfer pricing mechanisms, the South African Revenue Service (SARS) said on Tuesday. Over three years South Africa has seen “hundreds of billions of rand” leaving in royalties, management and service fees and intellectual property payments,… – Continue reading

Documents reveal Kurchenko’s alleged tax evasion schemes

The young Ukrainian ex-billionaire Serhiy Kurchenko, now widely suspected of being a front man for overthrown President Viktor Yanukovych’s family, clearly liked offshore destinations. His companies registered in offshore zones are now accused of trading in oil products using a tax evasion scheme that cost Ukraine’s government an estimated $1… – Continue reading

B K Syngal writes that Vodafone tax evasion case and its historical FDI pattern is a classical example of crony capitalism

Much brouhaha has been created by the recent reports about the Vodafone Tax case with respect to whether or not a capital gains tax is due from them on the purchase of assets in India. New lexicon has been created for the uninitiated – “tax avoidance” versus “tax evasion”; “look… – Continue reading

Fugitive tycoon Zeng Wei’s offshore holdings tied to loan scandal

Fugitive mainland Chinese tycoon Zeng Wei, who is facing extradition to Hong Kong from the United States, is tied to at least five offshore companies, including one that was involved in a multimillion-dollar bribes-for-loans racket investigated by the ICAC, leaked company documents show. The property developer, hotel and golf course… – Continue reading

UBS helped set up offshore firm for wife, daughter of corrupt railways official, database shows

Swiss bank UBS is at the centre of embarrassing revelations that it helped to set up a secretive offshore firm for the wife and daughter of a former senior Chinese official who has since been convicted of corruption. Zhang Shuguang, a former deputy chief engineer of the disbanded railways ministry,… – Continue reading