Cross-border tax probes set to rise
Number of tax probes set to rise after AstraZeneca settles transfer pricing dispute with HMRC
Accountancy Age, March 4, 2010

Man jailed for trying to smuggle £60,000 cash in his underpants
The Daily Telegraph, March 4, 2010

Man held as police look to track down £2m in ‘dirty money’
Scottish Daily Record, March 4, 2010

Kazakhs accuse ex-uranium boss of money laundering
Reuters, March 4, 2010

US queries delays in law to fight crime
The Daily Nation, March 4, 2010

Oregon Man Charged with Operating Illegal Money Transmitting Business That Moved More Than $172 Million Through Shell Corporations in the US
US Dept of Justice, March 3, 2010

Advani demands white paper on black money
Indian Express, March 4, 2010

Jobs bill vote this afternoon
MSNBC, March 4, 2010

Kirk gets pressure on trade deals
Says labor has voice, not veto
The Washington Times, March 4, 2010

DND to bare bets using drug money in campaign
Manila Bulletin, March 4, 2010

From Monterrey to Doha: Taxation and Financing for Development

March 3, 2010 | Tax Justice Network

Our colleagues Dries Lesage (Ghent University), David McNair (Christian Aid), and Mattias Vermeiren (Ghent University), have had a scholarly paper published in Development Policy Review in which they trace recent progress in the global debate on tax and finance for development.

The paper explores the background to the Financing for Development (FfD) process of the United Nations, explaining the institutional and political reasons why the original Monterrey Consensus of 2002, described by the authors as “a mix of . . . compromise and lowest common denominators between the different blocs,” rarely mentioned tax. This was not for want of trying on the part of those who had been pushing the FfD agenda prior to Monterrey, including and especially Ernest Zedillo (ex-President of Mexico), whose high-level panel of experts had identified how ill-conceived tax policies, illicit financial flows, and tax evasion, were eviscerating the tax regimes of poorer countries.

It’s your turn

March 3, 2010 | Ann Hollingshead

If you’ve read any of my blog posts, you know a thing or two about illicit financial flows, development, and tax havens.

I’ve told you about how developing countries lose US$1 trillion a year to illicit financial flows, which is more than what the developing world spends on health care and 500 times what the World Bank spends on emergency food aid. I’ve shown how banking secrecy feeds into the problem of corruption, as dictators like Teodoro Obiang are able to steal hundreds of millions of dollars from their people and then are able to hide it in American banks.

I’ve illustrated how greedy multinationals can use trade mispricing to sell tweezers for $4,896 and razor blades for $113, shift profits to tax havens or developed countries, evade their taxes, and leave developing country governments out to dry. I’ve shown how those flows of money reduce the growth potential of developing countries by diverting domestic savings away from investment.

Wednesday’s News Digest

March 3, 2010 | Clark Gascoigne

Swiss private banking: An industry in denial?
Financial Times, March 3, 2010

Editorial: Closing secret accounts
JoongAng Daily, March 04, 2010

Editorial: Tracing Tax Evaders: Korea Seeks to Get Banking Information From Switzerland
The Korea Times, March 04, 2010

Israel’s Foreign Minister Questioned by Police
Suspicions Lieberman Coerced Israeli Diplomat Into Handing Over Secret Documents
ABC News, March 3, 2010

Corruption costs Greek economy $1 bln a year – watchdog
Reuters, March 2, 2010

Chinese official caught as diary of wine and women leaked online
The Times of London, March 3, 2010

France urges Russia’s Medvedev to battle corruption
Reuters, March 2, 2010

Two Years In, Old Ills Still Norm for Kenyan Government
Voice of America, March 2, 2010

Building Afghanistan’s Financial System
Voice of America, Editorial, March 3, 2010

Corruption and diplomacy
The Jakarta Post, March 3, 2010

Jonathan Forwards Money Laundering Bill to Senate
This Day, March 3. 2010

Fastweb Founder Denies Role in Fraud
The Wall Street Journal, March 3, 2010

Mexico, a hub for money laundering, still the main foreign supplier of drugs to the U.S.
BNO News, March 3rd, 2010

Swiss Going Back to School to Learn OECD Rules

March 3, 2010 | Clark Gascoigne

World Radio Switzerland is airing an interesting segment on the future of banking secrecy in Switzerland:

Caught in the storm surrounding banking secrecy, some feel they’ve caught a glimpse of a brighter future. Among them is a group of tax and financial experts who’ve come together to set up Switzerland’s first masters programme in international tax law at the University of Neuchatel. When the storm has blown over, they say, we’ll be playing by OECD tax rules. Bankers, lawyers, tax advisors, many have enrolled to learn those rules. Reporter Lucas Chambers went to join them for a day:

Check it out below:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Tuesday’s Top Stories

March 2, 2010 | EJ Fagan

U.S. Ups Criticism, Pressure On Kenya
The Wall Street Journal, March 2, 2010

Italian Cabinet approves corruption crackdown
The Associated Press, March 1, 2010

Iraq VP slams corruption, urges a vote for ‘change’
AFP, March 1, 2010

Guatemala fires minister for alleged corruption
The Associated Press, March 1, 2010

Vontobel Evaluating Ops For US Offshore Clients
Dow Jones Newswire, March 2, 2010

Swiss lawmakers threaten to haul Germany to the world court for purchasing data on tax evaders
The Associated Press, March 2, 2010

US tells India to tighten regulation to curb money laundering
The Hindu, March 2, 2010

Fastweb Founder Questioned By Judge In Money Laundering Probe
Dow Jones Newswire, March 2, 2010

BAE Systems pleads guilty in fraud conspiracy case
Bloomberg News, March 1, 2010

Gome China Unit Indicted for Bribery at Beijing Court
Bloomberg News, March 1, 2010

GFI Releases New Web Video Calling Citizens of the World to Action

March 1, 2010 | Clark Gascoigne

Global Financial Integrity released the following web video today along with a letter from GFI Director Raymond Baker. The video encourages individuals to combat one of the oft-neglected causes of poverty, illicit financial flows, by urging the G20 to create financial transparency.

Dear Supporter,

For over half a century – western aid organizations have admirably worked to alleviate poverty in developing countries. Despite these efforts, over 3 billion people-or half the world-live on less than $2.50 per day. Indeed, more people live in poverty today than at any other time in human history.

That’s because for every 1 dollar in foreign aid sent to developing economies, 10 dollars is flowing out illicitly. In fact illicit financial flows from developing economies total $1 trillion every year-10 times the amount of foreign aid received.

Another Angle To Financial Transparency: America’s Drug War

March 1, 2010 | EJ Fagan

Oliver North from Fox News wrote a column today about the increasing rate of murders, kidnappings, and drug smuggling along the Mexico-U.S. border. After discussing the problem, he adds,

There are other challenges the administration has failed to address as well. Everyone involved – from the Andean basin to the streets of Chicago knows that the flow drugs north won’t stop until the flow of money south is interdicted. Arizona’s Attorney General, Terry Goddard, recently won a major settlement with Western Union about illicit financial transactions. The Departments of Justice and Treasury lauded the outcome of this contentious issue, because Western Union has agreed to turn over money transfer data on suspicious transactions.

Arrests and prosecutions from this information are likely. Equally certain is that the cartels will look for new ways to move money. According to those engaged in this fight, cartel bosses are always looking for new ways to move drugs and money. Unfortunately, our ability to detect cash transfers through European banking institutions suffered a crippling setback last month when the European Commission shut down U.S. law enforcement and intelligence access to the Terrorist Financial Tracking System (SWIFT) that had been so carefully created in the aftermath of 9/11.

Every week, we are reminded by the pervasiveness of the financial transparency issue. This week, an opaque financial system is enabling violence in Latin America. Last week, we saw it pop up in Greece. Who knows where it will travel to next? The constant is the solution: financial transparency. Hopefully, mainstream media reports will connect the dots.

Monday’s Top Stories

March 1, 2010 | EJ Fagan

Govt loses 30% revenue to evasion
The Zimbabwean, February 26, 2010

Germany buys Swiss bank data in tax evasion crackdown
Reuters, February 26, 2010

Swiss to outlaw untaxed money but wants to cling on to bank secrecy
Investment International, March 1, 2010

U.S.-UBS Deal Is Undermined by Swiss Ruling
Bloomberg News, February 26, 2010

Korean Depositors in Switzerland Face Monitoring
Korea Times, March 1, 2010

Silvio Berlusconi ‘avoiding justice’, demonstrators say
BBC World News, February 27, 2010

Berlusconi corruption trial adjourned to March 26
Reuters, February 27, 2010

Over 2,000 Italians probed in new tax crackdown
Reuters, February 26, 2010

OECD to list tax offences as form of money laundering
AFP, March 1, 2010

Russia Busts Crime Ring That Laundered $1.6 Billion
Bloomberg News, March 1, 2010

‘Documents prove Olmert’s guilt’
Jerusalem Post, February 26, 2010

India targets ‘black’ money
The National (UAE), February 27, 2010

Costa Rica looks to take itself off tax haven list
Tico Times (Costa Rica), March 1, 2010

Hedge-Fund Assets Offshore Exempt From Reporting Rule
Bloomberg News, February 26, 2010

Tax havens robbing 255 bn euros of poorest nations
PTI News, February 28, 2010

Wealthy Pakistanis Should Pay More Tax, Clinton Says
Tax Analysts, March 1, 2010

Friday’s Top News Stories

February 26, 2010 | Clark Gascoigne

¡Cómo somos los periodistas!
ElPeriódico de Guatemala, February 26, 2010

Officials puzzle over millions of dollars leaving Afghanistan by plane for Dubai
The Washington Post, February 25, 2010

Yale expert to speak at K-State
The Capital-Journal, February 26, 2010

Swiss Court Backs Two More UBS Clients Against Data Handover
Dow Jones Newswires, February 26, 2010

Swiss shun untaxed cash, seek fix to “black money”
Reuters, February 25, 2010

German tax crack down could net 500 mln euros-union
Reuters, February 26, 2010

Tel Italia launches probe into scam claim
Financial Times, February 26, 2010

Italian telecoms billionaire turns himself in
Reuters, February 26, 2010

Trial against ex-Israeli PM begins
UPI, February 26, 2010

US top cop says Justice Department using new tools
Reuters, February 25, 2010

Corporate tax reforms essential to foster growth
Daily News & Analysis, February 26, 2010

Amended Tax Treaty with Malaysia to Boost Tax Information Flows
International Business Times, February 26, 2010

Sister, niece of ex-La. congressman plead guilty
AP, February 25, 2010

Thursday’s Top Stories

February 25, 2010 | EJ Fagan

Switzerland Rejects Automatic Tax-Data Exchange
The Wall Street Journal, February 25, 2010

Swiss to Submit Revised UBS Tax Deal to Parliament
The New York Times, February 24, 2010

Multinationals face gathering tax storm
The Financial Times, February 25 2010

Climate change’s secret weapon
The Asia Times, February 26, 2010

Telecom Italia Delays Results Due to Money-Laundering Probe
The New York Times, February 25, 2010

US Expands Probe Of Lilly’s Compliance With Antibribery Law
Dow Jones Newswires, February 25, 2010

Ribadu: Corrupt Nigerians Should be Prosecuted on US Soil
This Day, February 24, 2010

Ramdev advocates death penalty for corrupts
Press Trust of India, February 23, 2010

Tax and policy leadership: G20 and OECD, developing countries

February 24, 2010 | Tax Justice Network

From the Michigan Law School’s Tax Policy Workship co-ordinated by tax expert Reuven Avi-Yonah, a paper by Alison Christians of the University of Wisconsin draws attention to some important points. Entitled Taxation in a Time of Crisis: Policy Leadership from the OECD to the G20, its introduction notes that

“An entrenched international architecture of tax policy expertise ensures that a small group of established players continue to shape tax norms and practices throughout the world. This architecture is based on historical international power relationships and institutional history. For diplomatic restructuring on the world stage to usher in a new age of inclusion for previously marginalized states and peoples, systemic changes must also take place in these entrenched institutions and processes.”

It notes that although the G20 includes many developing countries,