The rich use tax havens to avoid most taxes, and most people have no idea what is going on

A week ago, Aftenposten / E24 and several international newspapers published new findings from another line of refuge, this time documenting Pandora. Guttorm Schjelderup is one of the leading experts in taxation and tax havens. He heads the Norwegian Tax Center and is a professor in Norwegian school administration.

According to him, there is nothing new in the Pandora leak. As previous major leaks have shown, the economic and political elite seem to be taking advantage of tax havens.

– This is not surprising because resources are needed to use these structures. The man on the street has no way of doing that. We know from research that the rich avoid high taxes by using tax havens.

Most people don’t know what’s going on, so we don’t see a big grassroots movement against it.

– Guturm Schgelderup, head of the Norwegian Tax Center

In every corner of the planet

Investigative journalists have been working with leaks from tax havens in various countries for many years through the International Federation of Investigative Journalism and the International Federation of Investigative Journalism. They believe that the word tax paradise reminds many people of a distant island with palm trees, and everything seems to have been found so far.

“Pandora’s documents show that this is a cash machine operating in every corner of the planet,” ICIJ said. In an article on their website.

According to ICIJ, reputable companies such as multinational banks, law firms and accounting firms, headquartered in the United States and Europe, play a key role.

Silderpe emphasizes that tax developments are often small states with small populations. BVI has a population of 30-40 thousand, but there are more than one million joint stock companies. With a population of 5.5 million in Norway, Schildruff expects the number of limited liability companies to be less than 500,000.

The Virgin Islands have no resources to monitor or service users. Many amenities have been made by the City of London. These countries are not encouraged to do anything about secrecy because the most prestigious financial centers are so closely linked and so important to the value of creativity. Most people don’t know what’s going on, so we don’t see a big grassroots movement against it.

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Pandora-Leg

• On Sunday, October 3, he was released by the International Federation of Investigative Journalists Pandora leaves, Which shows how the world’s richest and most powerful financial system benefits. 12 million documents reveal how 35 former and current heads of state and 300 civil servants earned their fortunes and ran their businesses through tax business.
• According to Aftonboston, Pandora’s documents reveal the real owners of 29,000 anonymous companies, numerous bank accounts, private jets, luxury boats, antiques, villas and exclusive works of art.
• Source: NTB

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Harm to the economy

Schlelderp has written articles on the detrimental effects of tax havens on the economy. It reminds us of the need to use tax havens as businesses and individuals provide a good legal framework that is acceptable to banks and investors.

“When the structure is large, it also promotes economic growth. Even those who work locally in the tax haven can use it. But it is not allowed. The legal framework aims to increase confidentiality and protect the interests of investors. Schlelderp writes.

The United Nations Commission on Nature has determined that tackling the problem of tax havens is crucial to the success of the restoration needed to maintain nature and climate.

The most powerful countries in the world and the economic and political elite depend on tax havens.

– Guturm Schgelderup, head of the Norwegian Tax Center

– Confidentiality is a problem

Norwegian Schzelderf reed Capital is sufficient Who highlighted in 2009 the amount of money disappearing from developing countries through corruption and secrecy, which is obscured by the use of tax havens.

What are the arguments against tax havens that governments and politicians need to think about more?

Secrecy and law are a problem targeting people who do not live in tax havens. Why should we accept that tax asylums provide the most harmful law, and those who use it are not allowed to work in tax havens – hence the name box companies? Schlelderb asks.

He believes that if the law for mailbox companies is in favor of the country where an address exists, that address will be allowed to be used.

International investors who set up companies in tax havens are not allowed to do business in tax havens themselves, so tax companies do not have to control these companies. They do not need corporate account registration and information about common ownership in other countries. It is difficult for us to control what is happening. Norgas Bank knows nothing about the structures of Nikolai Tankan.

When Nikolai Tankin was appointed central bank governor during the storm, his use of tax havens was an issue. Norges Bank’s oversight board regretted that Tangan’s rights interests and personal finances had not been clarified prior to the appointment, writing in a letter that “complete transparency remains around companies located in tax havens”.

Strong ones depend on tax havens

Is it possible to dissolve tax havens?

No, because it depends on the most powerful countries in the world and the economic and political elite tax havens.

What can be done to move the system to minimize harmful effects?

Shildrup says you could argue that the laws that provide tax havens for foreign investors also apply to those who live and work in tax havens.

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They use tax havens

• The Pandora spill exposed the use of tax havens by 35 heads of state and more than 300 politicians: former British Prime Minister Tony Blair, Dutch Finance Minister Wobke Hokstra, Kenyan Prime Minister Uhuru Kenyatta, Capone leader Ali Bongo, and Pakistanis. Finance Minister Shavkat Tarin, President of Ukraine Volodymyr Zhelensky, Mohammed bin Rashid Al Maktoum, Prime Minister of the United Arab Emirates. Read the list on E24.
• Aftenposten / E24. Found 300 Norwegians in the tax paradise of Pandora. This includes hairdressers, ship owners, professional drivers, lawyers and investors. Most people own unknown companies in tax havens and own property there.

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The Organization for Economic Co-operation and Development, the Organization for Economic Co-operation and Development, has met the demand for a global minimum tax rate of 15 per cent to help close tax havens. One concern that Childtrub sees is that, as small states, tax companies have the ability to audit and companies cannot tax their business records.

Businesses do not pay taxes, so today there is no public oversight of tax havens. It remains to be seen how this will work. Shildrup also says that it is an open question, especially in countries that do not agree with the plan, how the OECD can ensure compliance.

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Journalist Network ICIJ

• The International Federation of Investigative Journalists (ICIJ) is a network of more than 280 grave journalists from around the world. The International Federation of Investigative Journalists is headquartered in Washington.
• He has worked for more than 100 media outlets, including Aftonboston, the BBC, The New York Times and The Guardian.
• The Panama Papers received much attention from the first events released in April 2016. 376 journalists worked on 11.5 million documents on the key role of tax havens in the global financial sector.
• In 2017, the International Federation of Investigative Journalists released the Paradise Papers, which exposed the financial secrets of tax havens, including those of politicians, the Royals and many other prominent global corporations.
• By 2020, Finsen had made 2,100 reports of suspicious transactions from US banks, and Finsen reached out to the American company Ecocom.
• Source: NTB

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