Financial Transparency Coalition

Tax Research LLP and the Tax Justice Network have made a joint submission to the European Commission this morning on their consultation on the future of the Transparency Directive. The full submission is here. The summary says:

This submission addresses issues of opacity within the financial reporting of multinational corporations quoted on stock exchanges which we believe should be addressed by revision to the European Union’s Transparency Directive. We focus in particular on these issues: 1. The current opacity regarding ownership of such multinational corporations; 2. The opacity regarding the structure of such multinational corporations; 3. The...

The FT has reported:

Organised criminals in the UK are becoming increasingly involved in financial frauds including insider share dealing that they see as lucrative and low risk, investigators have warned. The trend – for 15 years a concern of US securities market regulators – is only now being explored in Britain where authorities are facing criticism for failing to co-ordinate on tackling financial crime. Paul Evans, Soca’s (Serious Organised Crime Agency) director of intervention, said those people targeted by his agency – which covers areas such as drugs, people trafficking and extortion –...

I have suggested before, and I will suggest again, that transfer pricing is contributor to the tax gap. Oddly (!) the tax profession – and especially those parts with links to secrecy jurisdictions – deny this. Many are not convinced by such arguments. Take this testimony given by the IRS to Congress in July:

Testimony of Stephen E. Shay Deputy Assistant Secretary (International Tax Affairs) U.S. Department of the Treasury Before the U.S. House Committee on Ways and Means July 22, 2010 Chairman Levin, Ranking Member Camp and members of the Committee, thank you for the...

According to Isle of Man Today the island is in deep trouble:

AN end to the current zero-10 corporate tax regime could devastate the largest sectors of the Manx economy according to a survey carried out of business professionals in the Island. Jobs and business would leave the Island and go to rival jurisdictions if the Isle of Man introduced corporate tax.

As it explains:

The Island cut corporate tax to zero in 2006 for most industries to lure more business here. The Channel Islands followed suit. But the European Union, which initially did not complain about the Manx tax...