Tag Archives: Knightsbridge

Taxation solved the old way

Yes, that is a nice weird way is it not? It all started yesterday when I was confronted in the Guardian with: ‘‘McMafia’ law: woman who spent £16m at Harrods is jailed banker’s wife‘ (at https://www.theguardian.com/uk-news/2018/oct/10/wife-of-mcmafia-banker-with-16m-harrods-spending-habit-named). The article by itself was not the issue; it woke up a spark in me. Now, I have nothing against wealth, I do not have any and that is fine (for the most mind you). Yet we all have ‘duties’ that we should be bound to and that is fine for the most as well. So as we understand that the UK is close to two thousand billion in debt, does it not seem fair that we all pay our share? From the HRMC point of view, especially those who should be regarded (to its wielding commander Jon Thompson, formerly Permanent Secretary of the Ministry of Defence) as an HRMC positive and subjects of interest. So as such, it was interesting to read that Zamira Hajiyeva, wife of Azerbaijani banker jailed for defrauding his state-owned bank out of as much as £2.2bn gets to live her life with a monthly spending spree of well over £100,000 a month at Harrods alone. So as we are introduced to: “The court of appeal has lifted a veil of secrecy to allow the publication of details of the UK’s first unexplained wealth order (UWO), in which the National Crime Agency alleges that stolen funds were used to buy a £11.5m, five-bedroom property in Knightsbridge, 100 yards from the doors of Harrods“. How is this even possible? And when you consider “The NCA also claims suspect cash funded the £10.5m purchase of Mill Ride golf and country club in Ascot via a company based in Guernsey. The Knightsbridge home was allegedly bought via a firm in the British Virgin Islands, which the NCA alleges is controlled by Hajiyeva“, which for me implies that she will optionally be my neighbour (or nearby neighbour) in the future (nudge, nudge, wink, wink). So when we are casually told that “Hajiyeva’s lawyers had convinced a judge to impose reporting restrictions that prevented the woman, her husband, his bank or their nationality from being reported“, I merely contemplate on how the HRMC has been wasting the time of too many people. When we see that a court ruling gives us: “Hajiyeva could only be referred to as “Mrs A”“. How does any of that make sense? So after well over ten years we see: “The court also heard that Hajiyeva had access to a $42m Gulfstream G550 jet and had a wine cellar stocked with some of the world’s most expensive bottles. Mr Justice Supperstone has ordered that Hajiyeva must comply with the UWO and explain how she amassed the money used to fund the property purchases. If she is unable to prove the legitimate source of the funds, the properties could be seized“. You would think that I care, but I do not, because it all dwarves against ‘Facebook’s UK tax bill rises to £15.8m – but it is still just 1% of sales‘, which implies that the HRMC did more damage to the UK treasury in one year then the labour party could have achieved in a decade of ambitious overspending. OK, that was an exaggeration, but the message is clear. This is an amazing amount of wrong issues regarding corporate taxation and it is time that it is addressed. The mere fact that certain political players have been paying a fast and loose game whilst we all facilitate to keep the treasury coffers in deep debt is just too large an issue. So when we see: “Margaret Hodge, a Labour MP and former chairman of the public accounts committee, said it was “absolutely outrageous that Facebook’s UK tax bill is 0.62% of their revenue here; on an income of £1.2bn they really should be paying much more than £7.4m”“, we can agree that Margaret Hodge is not whistling Dixie, yet her own party did their share of damage between 1997 and 2010, if they had ACTUALLY stepped up to the task, this situation might not have as dire as it seemingly is at present. So both isles are in the wrong here and have been so since close to 1995. When I see: “The chancellor, Philip Hammond, has pledged to push ahead with a new “digital services tax” to force the US firms to pay more tax. He said the UK would introduce its own levy if other countries fail to follow through with a globally coordinated tax plan” I would optionally refer to him as a pussy and a whimp. You see, this could have been solved by taxing at the moment of sales, in the country of the purchasing customer from the get go. Sales tax on anything sold, online through ITunes, Google Play, Facebook and all parts. It would have been so simple, but we see: ‘the UK would introduce its own levy if other countries fail to follow through with a globally coordinated tax plan‘ sounds nice, but that takes years and by the time it is implemented there is a new administration and we see delays and other objections; politicians (mostly) with the spine of a paperback, not one solid spine among them. It has gone on for way too long.

So how does one compare to the other?

Consider: “Hajiyeva is the wife of Jahangir Hajiyev, 57, the former chairman of the state-owned International Bank of Azerbaijan. In 2016 he was sentenced to 15 years in jail for defrauding the bank out of up to 5bn manat (£2.2bn)“, so someone walks into the UK, her husband in jail for allegedly stealing over £2,000,000,000, his wife is  spending well over £100,000 a month for over a decade in one shop alone and no one acts? You tell me! Who has been on social services in the UK and got a sly look for spending an additional £200 on a birthday? And it gets better! That we get from Out-Law (at https://www.out-law.com/en/articles/2018/october/new-uk-offshore-tax-evasion-and-avoidance-measures-/). Here we are ‘treated’ to: “longer time limits for assessment are being introduced for those who do not voluntarily settle past non-compliance. Criminal prosecutions will also be easier. A register of people with significant control over non-UK companies owning UK real estate is to be introduced in 2021. It will also become mandatory to disclose cross border tax planning“, so the wealthy and the creative with access to accountant and tax lawyers will get three years to plan additional barricades and avoidance discussions, as well as contemplate life outside of the UK.

So how long until we get the news that delays and bad investment timing rears its ugly head from some MP who is required to keep the wealthy just where they are? After all how can we ever afford: “£65 per person including a glass of Harrods Premier Cru Brut, NV Champagne“, well the answer is simple merely because a rough 78.4% of the British tax paying audience will never really be able comfortably be able to afford that unless they give in on essential needs, optionally for months.

In all this there is a wave of not mere injustice, it is seemingly a wave of facilitation towards the overly wealthy, criminal or not. The fact that we are seemingly lulled to sleep by too many is an additional worry. So even as we thought that the police was on top of things with the August article of the Daily Mail (not the greatest source, mind you) giving us: ‘Roll up, roll up for the criminal auction! More than £2.4million worth of crooks’ ill-gotten gains to go under the hammer including a house, diamonds, emeralds, a luxury‘ and we see: “Luxury ill-gotten goods with an estimated value of £2.4 million that were once owned by criminals are set to go under the hammer this month. The expensive items that were seized by police include Rolex watches, gold jewellery, Cartier and Hermes belts and a diamond worth £22,000“, yet this optionally alleged spender of ill-gotten gains (Zamira Hajiyeva) got to spend 15 times the confiscated auctioned amount all by herself, which includes the five-bedroom property in Knightsbridge, and a lot more that is not part of the amount I mentioned here. So, even as we are introduced to a banker who has the wealth levels of a Rothschild, we are seemingly in the dark how this is achieved. You see, I do not care about her or her husband and how they got to do it, I truly do not. The fact that for well over a decade this level of facilitation is possible in the UK and Europe is just insane. And the issue is not that there is an optional solution from 2021 onwards. Italy did something ‘innovative’ years ago. There we see: “For at least a decade, the European Parliament has approved documents that specifically ask to extend the offence of mafia association to all member states – a law that is known as 416 bis in the Italian penal code. The parliament also calls to allow unexplained assets to be confiscated, even without a criminal conviction, which is another cutting-edge “innovation” of Italian legislation to combat organised crime. But these documents, despite being approved by the parliament, have all remained dead in the water due to the opposition of several member states, and despite constant requests from Europol and Eurojust – the EU’s police and judicial cooperation agencies.” Let’s call this: ‘all shout and no progress, welcome to the EU‘, or as we saw it in the US in the 70’s with their mafia cowboy senate events, all air and no prosecution. That is what we face and before we consider going after Zamira Hajiyeva, consider that politicians are enabling Facebook, Apple, Amazon, Netflix and Google to get away with hundreds times more then we could ever collect from the Hajiyeva family. Are you still wondering why government treasury coffers are so empty? So as we were treated in March to ‘The European Union will propose a 3% tax on digital revenue this week‘, the fact that it is below 10% should be hanging offense, a hanging offense for the majority of ALL EU politicians mind you. It is time to get serious, but we are shouting against a group of people who need that FAANG group for juicy connections down the road, so I do not believe that something actually will be achieved before 2030, and as the head of Facebook northern Europe, Steve Hatch gives us: ““By the end of 2018 we will employ 2,300 people in the UK and we are doubling our office space in London’s King’s Cross, with capacity for more than 6,000 workstations by 2022. “We have also changed the way we report tax so that revenue from customers supported by our UK teams is recorded in the UK and any taxable profit is subject to UK corporation tax.”“, we are already seemingly informed of an optional one year delay regarding cross border tax planning for Facebook. Funny how that would work out, is it not?

so when you read another headline like: ‘Fury as Starbucks pays just £4.5m tax on £162m profits‘, you might feel that there is a need for fury, also realise that there will be no results, not any day soon and that should anger you a lot more and the Labour side is just as guilty as the Conservatives are, I would claim that Labour is more guilty because at the dawn of the digital age they had the option to set up a fence from the very beginning and they decided not to do that, or claim to do and fail to do, whatever seems more correct to you.

So as you were contemplating how naughty some bankers are, consider how weak politicians have been for the longest times as billions that should have been collected got facilitated for and pushed to the board of directors of corporations in America (read: their ‘fat cat’ bonus).

In the end, we could use statistics and get creative, when we consider that between 1620 and 1725, women without brothers or sons to share their inheritance comprised 89 percent of the women executed for witchcraft in New England. When you consider that, do you still think that those witch trials in Salem were stupid and narrow minded? Perhaps they were in the end really creative in legislatively through allowed legal means, acquiring large shares of wealth, who was going to stop them? Perhaps Facebook with a: ‘share if you care’ option?

Nowadays we see that ‘criminal’ has become for the most a person who got convicted, because they did not have the right tax lawyer & barrister in his/her arsenal, how the times have changed. In this we merely have to hold a candle to the thoughts of Oscar Wilde who stated: “Morality is simply the attitude we adopt towards people we personally dislike“. So as our acceptance of wealth and money takes over, morality becomes a mere obstruction towards further gains.

I should have applied to Mossack Fonseca with my Law degree when I had the chance.

 

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Showing your bad hand

There was an article that nagged me, on the surface it felt like a waste of space, one of those….the government did something that does not affect most people. Now that is not an attack on the press, because that is what they do, they report things. Now, there is nothing about this report that is wrong, there is however a clear indication that a few people did not think this through, even more so, the actions give rise to a tactical blunder that should keep the members of the Special Forces Club in Knightsbridge snigger for some time to come. You see, the article called ‘Man charged in NSW town of Young over alleged missile advice to Isis‘ (at https://www.theguardian.com/australia-news/2017/feb/28/man-arrested-nsw-town-young-alleged-missile-advice-isis) is more than just a tactical blunder. Solar technician Haisem Zahab at present in Junee Correctional Centre after being arrested in Young charged with terrorism offences. So how is this person a terrorist (he is in legal definition)? Haisem Zahab, 42 was according to the info on Facebook a Solar technician. When you see the quote “acted with intent to provide Isil with the capability, with the technical capability, and high-tech capability, to detect and develop missiles“, howls of deriving laughter wash over me. I was trained with NATO gear and I reckon I would be a better fit here (even though I know how uselessly limited my knowledge is). Now consider for a moment the next article (at http://www.iran-bn.com/2016/11/29/us-iranian-citizen-convicted-for-trying-to-buy-missiles-for-iran/), which was last year, when an Iran-United States dual citizen named Reza Olangian was trying to acquire these items, not develop them. So instead of someone alerting someone at ASIS to see if a sting can be devised that allowed for Haisem Zahab to start his ‘mission’, ASIS professionals could monitor him and start setting up the operation to drain the IS bank accounts by introducing IS and Haisem Zahab to a technology salesperson with actual blueprints (perhaps ever so slightly altered) and sell this to Islamic State, the quote “the man arrested has sought to advise Isil on how to develop high-tech weapons capability” is still making me snigger, because the credible part is that he was an ‘electrician’. Oh, the tears of laughter are rolling down my cheeks! I am not sure if AFP commissioner, Andrew Colvin got Nick Warner involved, but when you consider the following quotes it might sound serious: “He said the man was allegedly involved in “researching and designing laser warning devices to help warn against incoming guiding munitions used by coalition forces in Syria and Iraq” and helping Isis develop its own long-range guided missile capabilities“, we will need to take it apart into the components.

  1. Laser warning devices to help warn against incoming guiding munition. So how advanced is that? To give you a viewpoint. Israel has the Arrow 2 which took almost 13 years to complete (it had been completed earlier, but the tests were done over a longer period of time). The Arrow 2 is what people call an ABM (Anti-ballistic missile systems), now this was designed by group of around a dozen experts in rocket science, electronics and aerodynamics. It was a multi-billion dollar event. Even if this electrician got to a missile completed to a certain degree, which is actually not that far-fetched, because missiles have become more precise, but like mortars, the foundation goes back a long way and that part is not that complex, yet here a Dragster mechanic will get a lot further than an electrician. Now, to introduce a hidden electronic switch that turns the detector into an attractor is not that large a call, so we give IS 2-3 ‘wins’ and when we see that they implement the detection solution, ASIS throws the switch and the detector will instantly attract missiles, so with one volley their detection system is gone and likely a lot more hardware on the side as well.
  2. as for “helping Isis develop its own long-range guided missile capabilities“, I will now take 5 minutes to roll on the floor, my stomach is giving me waves of cramps from laughter. To help you understand that part, the missile technology is not that hard. You can make a missile in your garage, but consider that HAMAS has been firing (with Iranian help) thousands of actual missiles, which included the FAJR-5, based on the Chinese exported model WS-1 MLRS. A rocket that took close to 13 years to get right and that one has had not one tactical success on Israel, how long do you think it will take to get anything up to scrap? Especially when you consider the Arrow 2 part? It would be a lot easier to develop a high tech mortar. The foundations of the mortar have never changed, to some extent, the 1450 version of the mortar is still the foundation that was used in Vietnam, what changed is that electronics allow mortars to be a lot more accurate and efficient. Now we have computers that help the aim, but it is to some extent still an art to get it right in one shot. To get the missiles correctly aimed takes a lot more and in that regard, the tactical option to have IS waste loads of cash might have been a much better approach, so when I see the photo with Malcolm Turnbull, pictured with AFP commissioners Andrew Colvin and Ian McCartney, I see a mere political quick fix! Now, we need to acknowledge that this is in all legal settings, so in that regard he had been correctly arrested. This we see in the Criminal Code Act 1995, where in 101.2 we see:

101.2 Providing or receiving training connected with terrorist acts
(1) A person commits an offence if:
(a) the person provides or receives training; and
(b) the training is connected with preparation for, the engagement of a person in, or assistance in a terrorist act; and
(c) the person mentioned in paragraph (a) knows of the connection described in paragraph (b).

This gives him a maximum 25 year governmental hotel voucher and as I personally see it, the line between consultant and trainer is thin enough to make it stick.

So we know he is going down, yet the quote “charged with two foreign incursion offences which carry a maximum penalty of life imprisonment” is different. You see that gives us “prepare to enter, or for another person to enter, a foreign country with an intention to engage in a hostile activity. Recruit persons to join an organisation engaged in hostile activities, or to serve in or with an armed force in a foreign country“, which should be fun, because the expert knowledge he offered (basically consultancy), here the Mens Rea might be satisfied, but the Actus Rea is not. Missiles are set to not need ‘another person to enter, a foreign country‘, which might happen, but is not a given, so the intent to never enter a foreign country could be achieved by the defence of Haisem Zahab, the ‘with an intention to engage in a hostile activity‘ would be proven, yet the text is ‘for another person to enter, a foreign country with an intention to engage in a hostile activity‘, the moment that the foreign border was not surpassed, the issue becomes vague and a legal victory becomes a little blurred, basically Islamic State is already a transgressor in any nation they are in, but if those governments will not speak out against that, the issue might not legally be won.

So we get a lot of press, all cameras with cowboy stories and in the meantime Director General Nick Warner was denied the option to deal Islamic State a severe body blow. Yup, there will be laughter in Knightsbridge tonight. And should you consider that I am awfully wrong (always a valid consideration to have) than take a look at the case of Omar Succarieh, which was set to 4.5 years, the appeal to get him in there longer is being heard (at http://www.abc.net.au/news/2017-01-31/omar-succarieh-sentence-inadequate-court-hears/8227068), with the quote “Justice Philip Morrison said the case appeared to be in the middle range for the offence which carries a maximum penalty of 10 years’ imprisonment“, which now gives the option of another change. You see, in the case of Omar Succarieh it was mere funds made available. If any defence of Haisem Zahab comes with words like ‘delusional‘ (an electrician making missile systems), or gets any missile expert from Raytheon or Northrop Grumman to show how complex missile systems actually are, the quote “the research he was alleged to have been doing was “credible”” could be thrown out of the window. By the way, this 18 month investigation, what INTEL did ASIS (if any) supply? I still think this was an option to do something long term against Islamic State.

Now, here we get to the title of today ‘showing your bad hand‘. You see, from where I sit, the entire situation gives rise to another matter. If we see actions as given, we are seeing a setting where political players have to admit that there is no short solution. The papers on a global scale, actual newspapers like the Wall Street Journal, The Australian and others have published papers on this and they gave us this in 2015: “But no strategy intended to defeat Islamism can succeed if Islamism itself and its violent expression in jihadism are not first named, isolated and understood“, which is at present not achieved, so this entire IS, is a long term game and there is no end in sight at present. This is extremely important, because as I personally see it, these little arrests with loads of camera’s will not bring resolution, the ability to set up shop and make IS spend their funds in all the wrong places is the first step to prevent IS to set up a successful long term strategy to develop larger weapon systems. And if you think that it stops here in Young, New South Wales, you would be wrong, because at some point, an Islamic State person will meet with dodgy types in Eastern Europe and broker a deal there. There are too many players willing to not care what happens in the Middle East and there is plenty of Russian goods all over Eastern Europe. This now implies that as some people go shopping elsewhere, and in that place they might not get a basket full of junk, they might actually end up with something useful, an idea we need to actively dread.

Because the bad hand shown and the fact that others will also realise that some players have a bad hand, only opens the doors to some places outside of our sphere of influence. I see this as a tactic badly played, but that might be just me. I will leave it up to you to decide how wrong I am and when you get a moment, ask your electrician how good his missile designs are, it could make for an interesting day and that is always a win for any person.

 

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