New Eurodad Report: Secret structures, hidden crimes

Tax evasion poses an acute challenge to developing and developed countries. From 2000 to 2010, illicit financial flows deprived developing countries of US$5.86 trillion. Tax evasion is not a victimless crime – for people in the developing world, the consequences of tax evasion can be a matter of life and death. If developing countries could recover this untaxed wealth, it could mobilise enormous resources for improving their public services and their citizens’ lives.

Toward Unitary Taxation of Transnational Corporations

Today’s international tax rules, which were drawn up nearly a century ago, have not kept pace with the massive changes in the world economy.

Keeping REDD++ Clean: A Step-by-Step Guide to Preventing Corruption

This manual helps interested parties to understand and address corruption risks associated with forest carbon accounting – particularly REDD+ – programmes and strategies at the national level. Users will learn how to identify corruption risks and instruments to help address these risks within the development of national Reducing Emissions from Deforestation and Forest Degradation (REDD+) action plans and strategies, and the implementation of REDD+ and other forest carbon projects.

The manual’s scope does not extend to corruption risks at the international level. Rather it is deliberately focused on processes that occur in country, to facilitate the participation of national and local groups in informing national policy, planning and project implementation. This tool is principally designed for civil society actors who may work with other NGOs, governments and the private sector to help design systems that are transparent, accountable, responsive and thus effective. It will help inform and guide forest carbon risk assessments, but should be adapted by users to fit their country contexts.

OECD: Tunisia signs multilateral agreement on fiscal co-operation and strengthens its links with the OECD

OECD – During his visit to Tunisia, the Secretary-General of the Organisation of Economic Co-operation and Development (OECD), Angel Gurria, met with the Tunisian Prime Minister, as well as government ministers and the President of the National Constituent Assembly, in order to discuss the co-operation between Tunisia and the OECD.

OECD: Protecting the International Financial System: Ministers to Renew the FATF Mandate

Ministers from Financial Action Task Force (FATF) member countries will meet in Washington DC on 20 April to extend the FATF mandate for another 8 years, continuing to safeguard the integrity of the international financial system.

The FATF Ministerial Meeting will take place in the margins of the 2012 IMF / World Bank Spring Meetings. It follows on the recent publication of the revised FATF 40 Recommendations, the international standard for combating money laundering and the financing of terrorism and weapons of mass destruction.

OECD: Pressure to end tax evasion grows as the Global Forum publishes new reviews

Reports on Brazil, Chile, Costa Rica, Cyprus, the Czech Republic, Guatemala, Malta, Mexico, Saint Vincent and the Grenadines and the Slovak Republic evaluate whether their national laws allow transparency and international exchange of tax information (Phase 1). The review of Korea also looked at the effectiveness of Korea’s exchange of information in practice (Phase 1 plus Phase 2). These reports bring to a total of 70 the number of peer review the g Global Forum has completed since March 2010.

Greece: The Cost of a Bribe

To get to the bottom of corruption, Transparency International analyses a range of critical societal institutions (such as the business, media or political parties) and assesses their ability to prevent corruption. This ‘national integrity system’ assessment has been carried out in more than 70 countries worldwide, with 25 of the studies recently completed or being finalised across Europe.

The Greece report finds that several “pillars” of the Greek anti‐corruption system have fundamental flaws, the most significant of which is a crisis of values, typified by broad scale acceptance of and participation in corruption.

OECD Working Group on Bribery conducts first evaluation of Russia’s implementation and enforcement of Anti-Bribery Convention

The OECD Working Group on Bribery has just adopted its first evaluation report of Russia’s implementation and enforcement of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OECD Anti-Bribery Convention). The Working Group on Bribery notes that some concerns remain in Russia’s legislation for fighting foreign bribery that will need to be further reviewed during Phase 2.

Tax Research UK: Closing the EU Tax Gap

Using consistently credible sources the resulting estimate of tax evasion in the European Union is approximately €860 billion a year. As the report notes, estimating tax avoidance, which is the other key component of the tax gap in Europe, is harder. However, an estimate that it might be €150 billion a year is made in this report. In combination it is therefore likely that tax evasion and tax avoidance might cost the governments of the European Union member states €1 trillion a year. These losses can only be accurately located with regard to tax evasion. Italy loses the most in Europe as a result of tax evasion. Its loss exceeds €180 billion a year. Estonia is, however, the biggest loser when the tax lost is expressed as a proportion of government spending. More than 28% of Estonia’s government spending is lost to tax evasion each year.

OECD: Russia joins OECD Anti-Bribery Convention

Russia today took a major step toward upholding international anti-bribery standards by depositing its instrument of accession to the OECD Convention at a ceremony at the OECD in Paris.

OECD Secretary-General Angel Gurría received Russia’s instrument of accession from First Deputy Minister of Foreign Affairs Denisov and First Deputy Minister of Justice Fedorov.
OECD Secretary-General Angel Gurría received Russia’s instrument of accession from First Deputy Minister of Foreign Affairs Denisov and First Deputy Minister of Justice Fedorov.

OECD: FATF Steps up Fight Against Money Laundering and Terrorist Financing

The Financial Action Task Force, the global standard-setter in the fight against money laundering and terrorist financing, has revised the Recommendations after more than two years of efforts by member countries. The Recommendations are used by more than 180 governments to combat these crimes. The revisions, made with inputs from governments, the private sector, and civil society, provide authorities with a stronger framework toact against criminals and address new threats to the international financial system.

The cost of money laundering and underlying serious crime is very large, estimated between 2 and 5% of global GDP. The revision will enable national authorities to take more effective action against money laundering and terrorist financing at all levels – from the identification of bank customers opening an account through to investigation, prosecution and forfeiture of assets. At the global level, the FATF will also monitor and take action to promote implementation of the standards.

The End of Banking Secrecy? An Evaluation of the G20 Tax Haven Crackdown

In August 2009, France and Switzerland amended their tax treaty. The new treaty stated that the two countries would from now on exchange upon request all information necessary for tax enforcement, including bank information otherwise protected by Swiss bank secrecy laws. In the following months, one of France’s richest persons and her wealth manager were taped discussing what to do with two undeclared Swiss bank accounts, worth $160 millions. After a visit to Switzerland, the wealth manager concluded that keeping the funds in Swiss banks or bringing them back to France would be too risky. He suggested that the funds be transferred to Hong-Kong, Singapore, or Uruguay, three tax havens which had not committed to exchange information with France. After the tapes were made public, they were widely commented in French newspapers and eventually the funds were repatriated to France.