Tag Archives: tax avoidance

The citizen model

We have seen the stage where governments all over the world started the wave of ‘Tax the rich’. The stage is wrong on two settings. In the first, we are a nation of laws, most nations are that and taxation is part of law. This results in two groups of people, the criminally inclined people who rely on Tax evasion, not paying the tax and the people relying on accountants and lawyers to set the stage of tax avoidance, which is paying the minimum they have to pay. One is criminal one is not. The tax avoidance people rely on black letter law, not the spirit of the law, but on what the lawmakers wrote down as the playing rules of a game. The rich use tax avoidance, it is not semantics, it is a state where they use the law as they can, as they are ALLOWED to do. 

So what happened to bring this to the surface? 

Well, the BBC gives us a long story and a decent recap (at https://www.bbc.com/news/stories-59062959) where we see ‘The Cryptoqueen’s £13.5m London penthouse’. Here we are introduced to the works of cryptocurrency scammer Dr Ruja Ignatova. 

We are given a lot of emotion, but some of the facts sipe through. There is “facing charges connected to the siphoning of millions of euros from Dr Ruja’s €4bn scam – which consisted of selling something that didn’t exist, a fake cryptocurrency she called OneCoin”, a seemingly clear case, or is it? We add “the lease was signed in August 2016, financial regulators in at least one European country had already issued a warning about OneCoin. A few months earlier, Dr Ruja had pleaded guilty to fraud and other charges in a German court, after bankrupting a metal factory she’d bought and leaving 150 people jobless in 2011”, so we see a stage that tarted in 2011, 11 years earlier. A lease was extended 5 years ago with at least one warning out in the open. Then we get “According to the property deed its owner is Abbots House Penthouse Limited. An anonymous Guernsey shell company – one of 12,000 such companies that own properties in England and Wales – meaning that Dr Ruja’s name would not have to appear on the UK deed, or in public records in the Channel Island.

Apart from the stage of Fraud and scamming, she broke no laws, she was extremely careful not to break any. Then on 25 October that year she boarded a Ryanair flight from Sofia to Athens, and vanished off the face of the Earth.

So we have an Oxford educated woman who knew hat strides to walk and she vanished with up to 4 billions and the existence of the current laws allows her to remain unfound until she is old, grey and still worth millions at that point. She won’t care what they call her. She will not care as she lives in her private golden cage, surrounded by walls of anonymous stages and staff (mostly lawyers). Consider if the law is useless to capture a criminal who knows the laws, what do you think will happen to a lawful obedient citizen with equal if not more wealth? What I stated again and again for 11 years is that tax laws need an overhaul. All these emotional people shouting ‘tax the rich’ is fun for TV, but useless in the stage of the law, until they are correctly adjusted. 

And the deceived investors? The ‘OneCoin Investors Entirely Dismiss Class Actions Lawsuit’ headline shows it. They no longer stand a decent chance of getting their money back. Het getting found and serving 90 years in prison is the best they can hope for. And those chances do not look good at present. Consider a wanted person named Ghislaine Maxwell. It took forever to arrest her in Bradford, New Hampshire by the FBI on 2 July 2020. It took them years to get a handle on her and she was wanted in plenty of places. The ultra rich are not breaking laws, the are not wanted and they are allowed to move what THEY own. The stage is laughable, the FBI and other parties required years to make a case, in case of one convicted fraudster 11 years and nothing was gained, not even an arrest. So do you still think I was blowing some horn? The flaccid politicians who claim and not deliver, they are part of the problem and them not overhauling the tax laws for well over a decade is a first sign of evidence. Inaction surpassing a decade, consider that evidence and see where that takes you.

The BBC article (beside the added emotions) is quite the revelation, you should take notice, because this helplessness will continue for at least another decade and I do understand it is too early to say, but when deforestation does not end in 8 years, you’ll know I am right and we both get to take that knowledge to our graves, that is where we are all heading anyway.

The model citizen in a citizen model is a joke, because if the law decides what a model citizen is, we also hold the first clear legal evidence that it pays to be a criminal, did you realise that when you read the BBC article?

1 Comment

Filed under Finance, Law, Media

A disregarded shelter setting

The Guardian was at it again and they are not doing anything wrong (at least I think they aren’t) but the stage created is calling for a nice stage and it is getting close to immediate that we take a hard look at the meaning of hypocrisy. 

The article ‘Pandora papers: biggest ever leak of offshore data exposes financial secrets of rich and powerful’ (at https://www.theguardian.com/news/2021/oct/03/pandora-papers-biggest-ever-leak-of-offshore-data-exposes-financial-secrets-of-rich-and-powerful) gives us a few items and before you think we are digging into the air, lets take a look at a few essential parts. It starts with “companies hired by wealthy clients to create offshore structures and trusts in tax havens such as Panama, Dubai, Monaco, Switzerland and the Cayman Islands” first, this is not an illegal act, then we need to look at Monaco and Dubai. Monaco gives us over two sources “You can apply for a Carte de Residence once you have an address in Monaco (either bought or rented a property for a minimum of a year). You must also agree to live there for more than three months of the year. Resident individuals are not subject to personal income tax in the Principality of Monaco”, now this is not the easiest setting as decent apartments tend to start at €3,000,000 going up to €387,000,000. As such I wish you good luck finding something you like. In Dubai we see “There is currently no personal income tax in the United Arab Emirates. As such, there are no individual tax registration or reporting obligations.” These are called tax havens and they are perfectly legal. It is the way THAT nation operates and it works for them, so when we see the Guardian give us “But the secrecy offered by tax havens has at times proven attractive to tax evaders, fraudsters and money launderers, some of whom are exposed in the files”, which is a debatable setting. You see someone who takes effort in buying an apartment in Monaco or Dubai, or most of these places is not a tax evader, that person is involved with tax avoidance and it is not the same. Black letter lawyers found a setting where the rules work FOR their clients and they are allowed to do this. Yet the Guardian inserts ‘tax evader’ whilst knowingly adding “some of whom are exposed in the files”, some implying not all and some is seemingly inserted hoping that the people are flamed to the list of “more than 100 billionaires, 30 world leaders and 300 public officials” hoping that they are all painted by the flamed audience. And in light of this, did anyone take a long hard look at “the cache includes 11.9m files from companies hired by” what is not looked at is the source of that information and how that source got the information. A setting not dissimilar from my article ‘The same gramophone’ on September 16th (at https://lawlordtobe.com/2021/09/16/the-same-gramophone/) regarding Pegasus and in light of evidence given (lack thereof) to the people by the Washington Post an interesting repetition of flames lacking evidence. The article on tax issues does not once, NOT ONCE mention tax avoidance, or give the setting of tax evasion versus tax avoidance. One is illegal the other is not. In this the text “They also shine a light on the secret finances of more than 300 other public officials such as government ministers, judges, mayors and military generals in more than 90 countries” could be seen as “They also shine a light on the private finances of more than 300 other public officials such as government ministers, judges, mayors and military generals in more than 90 countries”, yet they chose to not use the word Private did they? Private and non evidence could be seen as intrusive and harassing, the media really does not like it when their actions are seen in that way. 

My view?
You see if there was clear ‘tax evasion’ we would be getting this, instead of “leaked data with select media partners including the Guardian, BBC Panorama, Le Monde and the Washington Post. More than 600 journalists have sifted through the files as part of a massive global investigation”, so are they incompetent or is there too little remaining? The price of 600 journalists cannot be cheap so the more they flame, the more they ‘earn’ back, but that part is not really given is it? There is no top-line, a flaw we have seen more than once before. If it was clear 300 people can be shown in a top-line like Nation, government, non government easily enough. That would take an hour, perhaps two, but we do not get to see that, do we? We also get all kinds of embossed examples, with the added text “This is the Panama papers on steroids, it’s broader, richer and has more detail”, my view would be, then give it Ryle you dumb fuck! Do not posture, present facts! The top-line, the setting of tax evasion versus tax avoidance and a few other facts, including the source of the data, but we do not get any of that, do we?

I see it as a mere approach to the upcoming US debt ceiling and someone flaming that if ‘they’ had paid their taxes, there would not be an issue. Well, my view “Well, you stupid fucks, if you had clearly focussed on the tax laws that needed an overhaul for THREE DECADES we might not be in this mess either!” So whilst we are given “The files include disclosures about major donors to the Conservative party, raising difficult questions for Boris Johnson as his party meets for its annual conference”, an anti-tory smear setting. No matter who donates and to what party, if these people are not proven criminals, there would be no issue and I wonder how far these 600 journalists got. So when we consider “Many use shell companies to hold luxury items such as property and yachts, as well as incognito bank accounts” we need to see whether laws were broken and let’s be clear, they stated that these are people in over 90 countries. So which have laws against these acts and if they have an address in Monaco or Dubai, are any laws broken? This took me 5 minutes and we see a lack of a lot in one article seemingly the source of 600 journalists. 

I personally see only one option for a person like Gerard Ryle. Either give us that top-line clearly or become an Uber driver. As I personally see it, someone posturing absent of evidence should be somewhere else, not be some director of the International Consortium of Investigative Journalists, but that is merely my call on the matter we see here now.

Oh, and before I forget the meaning of Hypocrisy is “the practice of claiming to have higher standards or more noble beliefs than is the case”, a setting too many journalists fall into lately.

Leave a comment

Filed under Finance, Law, Media, Politics

Changing the mindset?

I had an interesting stage, there is the potential that I was changing my mind in a case. The stage is given via the BBC (at https://www.bbc.com/news/business-53416206) ‘Apple has €13bn Irish tax bill overturned’, my first thought was (and I have written about it in the past) the clear stage where Apple (Google also) has had its fingers in the tax-is for too much and for far too long, but the article gives two parts that requires thought. The first is “The European Commission brought the action after claiming Ireland had allowed Apple to attribute nearly all its EU earnings to an Irish head office that existed only on paper, thereby avoiding paying tax on EU revenues” in that instant there is all the drive and motivation to bring that supervillain Taxman to bear on the tech giant, let them suck the blood from the body of Apple until it cries for mercy. Yet the other part is “However, he said Brussels was likely to appeal and EU efforts to tackle tax avoidance would continue” ad here we see two parts, the first is ‘tax avoidance’, you see, tax avoidance is legally allowed, it means to pay the least applicable amount of taxation. Tax evasion is illegal, it is the setting where no taxation is paid at all, as such Apple did not break the rules and the stage is actually larger, the quote ‘tackle tax avoidance would continue’ is an issue that optionally Margrethe Vestager should (or could) be regarded as a joke, the issue is not whether Apple is being dodgy, it is the fact that the tax laws after all these years (10 at least) have not been adjusted to the degree that they should be adjusted to. Instead of large windbags of claimed activity that go nowhere, we see the need that the EU had to properly set the tax laws and in this Apple (as well as other FAANG members) did not commit any crimes. They merely used the tax laws to set the proper stage and apparently you can have an empty office, just like the Apple Stores have almost no stock, it is all shipped from the US (sometimes after 9 weeks) so nearly every Apple store is basically a gigantic display case (oversimplification, I know). Yet no matter how joyful and enjoying kicking Apple is, in this case they seemingly did no wrong, the fact that a judge is willing to hand back 13 billion Euro, as such, what is Margrethe Vestager crying about? It is seemingly clear that the tax laws are at fault, in this the organisations above the European Commission have faltered and Apple lived towards the letter of the law and applied what was legally allowed. So when we realise that these laws have been unadjusted for the better part of a decade, who is to blame, Apple or the European lawmakers? 

So when we see the end of the article giving us: “However, he said Brussels was likely to appeal and EU efforts to tackle tax avoidance would continue. “We expect the EU to continue applying pressure in this area,” he said.” And when we see this, how useless is the EU? Tackle appeals whilst the tax laws themselves are flawed, and Ireland is part of this, the stage where Apple was allowed to have “an Irish head office that existed only on paper”, so there wasn’t even a staff-member member? In which universe can we blame Apple for using the law to avoid taxation? If we are a nation of laws, the stage must be that the law states “Law is commonly understood as a system of rules that are created and enforced through social or governmental institutions to regulate behaviour”, this is not me, we get that from Robertson, a bit of an expert on the subject. So when we see that part and agree that we are are a nation of laws, the entire matter we observe becomes a farce, and a bad one. We agree that we use laws as a system of rules, and then let the rules be applied in the way it was, so why blame Apple? It is merely another example on just how useless the EU has become, a gravy train without rules of accountability. 

The EU get what it deserves, as far as I can tell, and as we cannot see any opposition to the black letter law that applies here, Apple is almost scot free. We will enter a new debate soon, the spirit of the Law versus the letter of the law, and in this Apple remains innocent, optionally Ireland ends up in the dock for setting a stage where the spirit of the law is avoided. 

I never changed my mind, I merely adjusted my personal verdict to the facts that were made public.

Leave a comment

Filed under Finance, Law, Politics