The Rupee Team

• 1) Definitions• 2) Categorizing the users• 3) Blames addressed to the tax havens• 4) Changes done after the G20 Summit

1/4/2010IDI-The Rupee Team

• Tax havens have always existed• Increased money exchanges through the

“single European act” in the 80ies• Small countries create attractive tax

conditions Harmful competition

1/6/2010IDI-The Rupee Team

Introduction

Criteria for being considered as a tax haven :• Insignificant or nonexistent taxes • Lack of transparency• Lack of fiscal communication• Attraction of offshore companies with

imaginary activities : absence of a requirement that the activity be substantial

1/6/2010IDI-The Rupee Team

Definition

1/6/2010IDI-The Rupee Team

World distribution of the T.H.

Definition of « color lists », regarding how the country collaborates

• Bank confidentialityoBriberyoDisengagement from industrial risksoFalsified balance sheetsoCriminal organization financing 

          09/11: secret financing of terrorist org.

1/4/2010IDI-The Rupee Team

• Tax avoidanceo  45 B€ in Franceo Fiscal pressure on SMEs & taxpayers

 

• Role in the crisis 

50% of capital pass through them  

opaqueness of international financial systemsminimal regulation on capital deregulation made easier  speculation and financial instability fuelled

1/6/2010IDI-The Rupee Team

Definition

1/6/2010IDI-The Rupee Team

The users

• Multinational companies handling worldwide

• Rich individuals

• States themselves

• Intermediate insuring connexion between both parties

1/6/2010IDI-The Rupee Team

Definition

1/4/2010IDI-The Rupee Team

1/4/2010IDI-The Rupee Team

Changes made after the G20 summit

 

 The main measures taken after the meeting of the G20

 Positive points:

• Attacking tax havens to avoid leakage of tax revenue and to protect the financial system.

• Public identification of territories through lists made by the OCDE:o A white list: Countries that already meet international

standards.o A grey list: The 38 countries that have pledged to respect

international standards but now they do not.o A black list: 4 countries, who have not committed to

international standards.

 The main measures taken after the meeting of the G20

• Creation of a list of possible sanctions against uncooperative juridictions.

• The requirement for hedge funds to register in countries where they operate.

• The FMI and the Financial Stability Board will establish a monitoring compliance with international prudential rules in these territories.

• Asserting a strong political G20: the era of bank secrecy is over.

 The main measures taken after the meeting of the G20

Negative points:

• The criterion for establishing the lists is not enough: it is far from an automatic exchange of information.

• Following pressure from China, Hong Kong is not in the list of the suspect countries, so the British answered by removing Jersey, Guernsey and the Isle of Man.

 The main measures taken after the meeting of the G20

Conclusion:• The G20 has done a lot but there is much more work to do:

o To establish a multilateral agency to get an automatic exchange of information

o Forcing companies, country by country, to make detailed reporting of their activities

o To pressure areas which promote financial instability.

Thank you!

...any questions?