Financial Transparency Coalition

It pains me to report that The Economist published a shoddy piece of journalism today on the U.S. Foreign Corrupt Practices Act.   The article can be read in full here. Heather Lowe, Legal Counsel and Director of Government Affairs at Global Financial Integrity, has responded to the article by publishing the following comment on The Economist's website:

I am quite surprised by both the tenor and lack of critical analysis in this particular piece. It is important that Economist readers understand the following:

Whether it’s tackling corporate tax dodging, changing international rules on tax havens, or improving tax systems, everyone involved in the international tax justice movement is aiming to increase the tax take in developing countries. This is both to increase the money available to pay for nurses, teachers and roads, desperately needed when you’re trying to run, say, a health service on a few dollars per person per year - as is the case in many of the poorest countries. It is also to encourage and develop the social contract between state and citizen, improving accountability. And it is to afford...

Anti-Corruption Coalition Requests US AML Review Wall Street Journal, September 14, 2011 Panama and the Cost of Tax Havens The Epoch Times, September 15, 2011 Disclosure scheme for foreign assets soon Hindustan Times, September 15, 2011 Swiss lukewarm on tax treaty calls Financial Times, September 15, 2011 U.K. to Legislate to Block Tax Avoidance Scheme,

In Germany, the Social Democratic Party (SPD) has come out against the deal. Meanwhile, the European Commission has also said it will have to assess the legality of the deals but has not taken a firm position. The final withholding tax concept, known as ‘Rubik,’ was initially formulated by the Association of Foreign Banks in Switzerland (AFBS) and by Swiss banks to protect banking secrecy against the international moves towards automatic tax information exchange, which followed the global financial crisis.

SPD Plans to Block Rubik Ratification in Germany

The SPD’s financial concept note published last Monday rejects the agreement with Switzerland. It is...