History is made as Vox Political agrees with David Cameron

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avoid, Bernard Madoff, corporate, David Cameron, dodge, evade, evasion, Glaxo, haven, Jean-Claude Juncker, Luxembourg, Mike Sivier, mikesivier, Pearson, ponzi scheme, Private Eye, tax, Tesco, Vodafone, Vox Political

 

Jean-Claude Juncker, tax avoidance mastermind and now President of the European Commission.

Believe it or not, David Cameron was right to oppose the appointment of Jean-Claude Juncker as President of the European Commission.

If Private Eye is to be believed, Juncker has a record of wreaking fiscal havoc across the continent, thanks to his behaviour embracing corporate tax dodgers as finance minister and prime minister of Luxembourg.

Anti-EU readers will be interested to note that he was chair of the EU’s council of economic and financial affairs, in which role he played a key part in shaping the economic and monetary aspects of the 1992 Maastricht Treaty.

Eye 1368 (June 13-26) states that Luxembourg has turned itself into a tax haven, “but, crucially, one at the heart of Europe entitled to tax-free flows of money in and out of its borders in a way traditional sunny island havens… could only dream of.

“The Grand Duchy became the member of the economic club that pilfered from the club’s funds.”

Let’s look at examples: “An especially fruitful line has been multi-billion-pound corporate tax avoidance at its neighbours’ expense. In the most infamous case, Vodafone still routes more than £50bn worth of loans through Luxembourg for no purpose other than taking advantage of tax laws and administrative rulings carefully tailored by Juncker’s governments to facilitate large-scale tax avoidance… The company is sitting on a £17.4 billion “tax asset”, ie reduction in future tax bills around the world, courtesy of [Mr] Juncker.

“Hundreds of other multinationals, including the UK’s Glaxo, Tesco and Financial Times publisher Pearson, use Luxembourg in similar ways at enormous cost to Europe’s economies.”

And the buck doesn’t stop rolling with tax, either: “Juncker pursued an aggressive regime of financial deregulation, especially in the area of investment fund administration. So it was no surprise that when Bernard Madoff’s ponzi scheme collapsed in 2008, a large chunk of the money had come through loosely-regulated Luxembourg funds set up by Swiss banks.”

The man responsible for the above is now in charge of the European Union. David Cameron was right to oppose his appointment.

Be afraid.

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Another ‘snout in the trough’ gets a sweetheart deal

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accountant, avoidance, Big Four, corporation, Dave Hartnett, Deloitte, HM Revenue and Customs, hmrc, Mike Sivier, mikesivier, multinational, Starbucks, sweetheart deal, tax, UK Treasury, Vodafone, Vox Political

Not such a sweetheart: Dave Hartnett, formerly of HMRC, now of Deloitte’s. There’s a line by Herbert Morris – “something in the lad’s upturned face appealed to him. He hurled a brick at it”. Would THIS man’s upturned face appeal to you in the same way?

Dave Hartnett, the former tax executive responsible for the hugely controversial “sweetheart deals” that allowed multinational corporations including Vodafone and Starbucks to avoid paying billions of pounds in taxes to the UK treasury, has started work with Deloitte, the accountancy firm and auditor of – guess who? – Vodafone and Starbucks.

Hartnett quit as Permanent Secretary for Tax at HM Revenue and Customs and then took on the one-day-a-week role (according to, among others, The Independent). Deloitte – one of the so-called ‘Big Four’ accountancy firms at the heart of every major scheme for tax avoidance – continues in its role at the UK Treasury, helping (if you can call it that) to write the law on – guess what? – tax avoidance.

Considering all of the above, does anybody seriously expect us to believe that Hartnett was working for the public when he was at HMRC?

No wonder Osborne can’t pay his debts – he’s chasing hairdressers for tax-dodging!

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accountancy, accountant, Amazon, Arcadia, avoidance, Big 4, Conservative, Customs, debt, deficit, dodger, economy, evasion, George Osborne, government, hmrc, Mike Sivier, mikesivier, Moody's, politics, Revenue, Starbucks, tax, Tories, Tory, Vodafone, Vox Political

It is no surprise at all that the UK has lost its triple-A credit rating from make-it-up-as-you-go Moody’s.

The change has been expected since before Christmas, but that doesn’t make it any less significant. Gideon George Osborne spent the first years of this Parliament using it as a stick to beat Labour – that the UK’s credit rating was the best it could be, thanks to his policies, not theirs.

That was a lie, of course. Others who know more about such matters can better explain the reasons but they have more to do with the value of bonds and savings than anything he did to improve the economy.

Like all credit rating agencies, Moody’s is a group of people who meet every so often and decide on particular countries’ scores, based on nothing more concrete than their own personal opinions. They can’t predict the future; they can only react to the present. That’s why they’re dubbed “make-it-up-as-you-go” at the top of this article.

But you can work out what that means, at this moment in time: 0sborne can’t pay his debts.

That’s astonishing. This is the world’s sixth largest economy, according to the International Monetary Fund. We make staggering amounts of money every year, so the operative question now is: Why the blazes can’t he pay his debts?

The answer lies in another story that broke last week – HM Revenue and Customs’ list of tax dodgers.

This is the list compiled by HMRC in response to public outrage against the tax-dodging schemes of large corporations like Starbucks, Amazon, the water companies mentioned in this blog before Christmas, Vodafone, Arcadia group and so on.

Who do you think this list marks out as public enemy number one?

A hairdresser from Liverpool.

Apparently this person was scalped of £17,000 for deliberate default. Others include a knitwear firm, a wine firm and a pipe fitter.

Meanwhile the amount of cash seeded away in offshore tax havens by the UK’s super-rich is estimated at £21 trillion. That’s 21 TRILLION – more than enough to pay all of our debts and put us back into surplus.

0sborne continues to use the ‘Big 4’ accountancy firms – all of whom operate many tax avoidance schemes for clients – to write the law on tax avoidance; and he changed the law to allow large companies great opportunities to avoid paying tax in the UK.

0sborne himself, remember, was identified as having profited from tax avoidance himself, and in fact offered advice on tax avoidance in a TV interview, while David Cameron’s family made a fortune on tax avoidance schemes.

There is only one conclusion to be reached: The Chancellor is using the HMRC list to laugh at us. He’s mocking the poor, who have to pay tax no matter what. He’s not going to level the playing field because that would harm his own profits and those of his friends.

The Chancellor of the Exchequer is deliberately harming the UK economy.

Poll tax revival plan to take away your home

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bedroom, benefit, cap, carer, children, cleansing, Coalition, Conservative, council, Council Tax Benefit, councillor, court, Customs, cut, Department for Work and Pensions, disabled, DWP, economy, Eric, families, government, home, house, housing, income, low, Margaret, Mike Sivier, mikesivier, millionaire, Parliament, pensioner, people, Pickles, politics, poll, Poll Tax, rebate, Revenue, social, tax, Thatcher, Tories, Tory, Tory-led, Treasury, unemployed, unemployment, Vodafone, working-age

Will we soon see demonstrations against the Coalition’s plan to cut Council Tax Benefit, as we did against the Poll Tax, with which it has been compared?

How much do you like your home?

Is it a good building? Do you get on with the neighbours? Do you live in a pleasant part of the country?

Well, take a good look around because you could soon lose it all if the Tory-led Coalition government has its way.

The plan is to scrap Council Tax Benefit from April next year and compel local authorities to set up local council tax support schemes, in order to cut 10 per cent from the current council tax benefit bill – a total of around £470 million per year.

Because pensioners will not be attacked in this way – at this time – this means working-age people are likely to face a loss of at least 16 per cent of their benefit.

Councils could choose to reduce spending in other areas or increase their revenue through council tax but, as these will affect groups other than current benefit recipients, I think we all know which way our councillors will be pushed. Either way, the local authority will take the blame – or at least, that’s what the Coalition hopes.

It will then be up to those authorities to pursue poor people through the courts for payment, if they cannot afford the new charge. This could amount to more than 760,000 people who work, but whose incomes are so low that they currently receive council tax benefit (The fact that the benefit being paid to them is effectively a subsidy for their employers, who should pay enough for them to support themselves without the need for benefit, is apparently a side issue) plus the disabled (already a target for hate campaigns by the Department for Work and Pensions), the unemployed, and families with young children.

The alternative, of course, is to move somewhere cheaper. You see, this is another part of the government’s social cleansing policy, created to run alongside the housing benefit cap and the ‘bedroom tax’.

The plan, in the government’s Localism Bill, has already been labelled a revival of Margaret Thatcher’s hated Poll Tax because it aims to ensure that everybody pays, no matter how little money you have.

To put this in perspective, the annual saving will total less than one-twelfth of Vodafone’s tax bill. That company owed the UK Treasury £6 billion but the government let it get away with paying just £1.25 billion after a ‘sweetheart’ deal was made with HM Revenue and Customs. That’s the same government that will have you kicked out of your home for the sake of a few pennies.

Rebates of up to 100 per cent have been available to the unemployed, disabled people, full-time carers and households on low incomes, many of whom have not been required to pay at all, ever since Council Tax came into effect in 1992.

Councils are currently setting out how they plan to deal with the change. Manchester has launched a consultation on proposals to require all households except pensioners to pay at least 15 per cent of the council tax bill, while Barnet is proposing a minimum 25 per cent charge for all working-age residents – clearly that council wants to clear out the poor and set up shop as a desirable residence for the rich.

Adding insult to injury, the tax increase for the low-paid will be timed to come into effect next April, on the same day as a tax cut for millionaires.

It all seems a very vindictive way to keep the scheme’s architect, Eric Pickles, in pies.

Wouldn’t it be better just to get Vodafone to pay its taxes?