Offshore tax havens are undermining elected government, hollowing out its tax base and corrupting its politicians but are still ‘growing fast’, according to a new book serialised in The Guardian.
Offshore tax havens are undermining elected government, hollowing out its tax base and corrupting its politicians but are still ‘growing fast’, according to a new book serialised in The Guardian.
In ‘Treasure Islands: Tax Havens and the Men who Stole the World’, published by Random House, Nicholas Shaxson argues that ‘offshore is how the world of power now works’.
He defines a tax haven as a place that ‘seeks to attract business by offering politically stable facilities to help people or entities get around the rules, laws and regulations of jurisdictions elsewhere’.
Shaxson, an independent journalist and associate fellow at Chatham House, observes that the City of London has become ‘the world’s biggest international – and offshore – financial hub’. Many wealthy foreigners and companies are attracted by UK tax laws and ‘a culture of don’t ask, don’t tell’, he writes.
English libel laws are ‘among the comforts for those who bring dirty money to London’, he says. ‘Many true things have been self-censored from this book … it is simply not worth risking my life savings and my family home.’
Shaxson argues that financial secrecy must be controlled and contained, and calls for 'a change of culture'.
‘When pundits, journalists and politicians fawn over people who get rich by abusing the system – getting around tax and regulation and forcing everyone else to shoulder the associated risks and taxes – then we have lost our way.’
Tax professionals Initial reaction to the book has been ‘incredibly positive’, Shaxson told Tax Journal. ‘A lot of people have been surprised at the size of what is at stake here. I've had quite a lot of supportive emails from the tax havens themselves.’
He added: ‘Ultimately, this is a systemic issue that is very hard for individual tax professionals to influence. They can decline to do certain business, knowing that their clients will go elsewhere. But there are some things that can be done.
‘How about a professional code of conduct that deals specifically with these issues? Ethics guides for tax practitioners, for example those that proscribe, say, assisting in something that would be breaking the law in another jurisdiction, would help. The accountancy profession doesn't seem to have a moral compass.’
The leading UK tax bodies’ joint guidance on professional conduct in taxation sets out the fundamental principles that members are required to follow. The guidance, updated last week, requires members ‘to be straightforward and honest in all professional and business relationships’ and ‘to comply with relevant laws and regulations and avoid any action that discredits the profession’.
Offshore tax havens are undermining elected government, hollowing out its tax base and corrupting its politicians but are still ‘growing fast’, according to a new book serialised in The Guardian.
Offshore tax havens are undermining elected government, hollowing out its tax base and corrupting its politicians but are still ‘growing fast’, according to a new book serialised in The Guardian.
In ‘Treasure Islands: Tax Havens and the Men who Stole the World’, published by Random House, Nicholas Shaxson argues that ‘offshore is how the world of power now works’.
He defines a tax haven as a place that ‘seeks to attract business by offering politically stable facilities to help people or entities get around the rules, laws and regulations of jurisdictions elsewhere’.
Shaxson, an independent journalist and associate fellow at Chatham House, observes that the City of London has become ‘the world’s biggest international – and offshore – financial hub’. Many wealthy foreigners and companies are attracted by UK tax laws and ‘a culture of don’t ask, don’t tell’, he writes.
English libel laws are ‘among the comforts for those who bring dirty money to London’, he says. ‘Many true things have been self-censored from this book … it is simply not worth risking my life savings and my family home.’
Shaxson argues that financial secrecy must be controlled and contained, and calls for 'a change of culture'.
‘When pundits, journalists and politicians fawn over people who get rich by abusing the system – getting around tax and regulation and forcing everyone else to shoulder the associated risks and taxes – then we have lost our way.’
Tax professionals Initial reaction to the book has been ‘incredibly positive’, Shaxson told Tax Journal. ‘A lot of people have been surprised at the size of what is at stake here. I've had quite a lot of supportive emails from the tax havens themselves.’
He added: ‘Ultimately, this is a systemic issue that is very hard for individual tax professionals to influence. They can decline to do certain business, knowing that their clients will go elsewhere. But there are some things that can be done.
‘How about a professional code of conduct that deals specifically with these issues? Ethics guides for tax practitioners, for example those that proscribe, say, assisting in something that would be breaking the law in another jurisdiction, would help. The accountancy profession doesn't seem to have a moral compass.’
The leading UK tax bodies’ joint guidance on professional conduct in taxation sets out the fundamental principles that members are required to follow. The guidance, updated last week, requires members ‘to be straightforward and honest in all professional and business relationships’ and ‘to comply with relevant laws and regulations and avoid any action that discredits the profession’.
