The United States loses, according to my estimates, close to $70 billion a year in tax revenue due to the shifting of corporate profits to tax havens. That’s close to 20 percent of the corporate tax revenue that is collected each year. This is legal.
Meanwhile, an estimated $8.7 trillion, 11.5 percent of the entire world’s G.D.P., is held offshore by ultrawealthy households in a handful of tax shelters, and most of it isn’t being reported to the relevant tax authorities. This is… not so legal.
.. In 2015, $15.5 billion in profits made their way to Google Ireland Holdings in Bermuda even though Google employs only a handful of people there... 63 percent of all the profits made outside of the United States by American multinationals are now reported in six low- or zero-tax countries:
- the Netherlands,
- Bermuda,
- Luxembourg,
- Ireland,
- Singapore and
- Switzerland.
.. After learning Irish authorities were going to close loopholes it had used, Apple asked a Bermuda-based law firm, Appleby, to design a similar tax shelter on the English Channel island of JerseyAppleby duly obliged, and Jersey became the new home of the (previously Irish) companies Apple Sales International and Apple Operations International... In 2015, the Swiss Leaks revealed the owners of bank accounts at HSBC Switzerland, and in 2016 the Panama Papers revealed those of the shell companies created by the Panamanian law firm Mossack Fonseca. These showed that 50 percent of the wealth held in tax havens belongs to households with more than $50 million in net wealth.. In the Paradise Papers, we see that these are not only Russian oligarchs or Belgian dentists who use tax havens, but rich Americans too... For a long time, the bulk of it was held in Switzerland, but a fast-growing fraction is now in Hong Kong, Singapore and other emerging havens.The most compelling way to do this would be to create comprehensive registries recording the true individual owners of real estate and financial securities, including equities, bonds and mutual fund shares... One common objection to financial registries is that they would impinge on privacy. Yet countries have maintained property records for land and real estate for decades... comprehensive registries would make it possible to not only reduce tax evasion, but also curb money laundering, monitor international capital flows, fight the financing of terrorism and better measure inequality.
Terrorism Financing: It’s Time to Take Care of Unfinished Business
The SAAR network is a web of over 100 purported charities, nonprofits, and financial firms, centered in northern Virginia, that were accused of laundering money for terrorism. The SAAR Foundation, the nucleus of the network, was set up in 1983 under the patronage of Sulaiman Abdul Aziz al-Rajhi, a wealthy Saudi banking magnate who is strongly suspected of supporting al-Qaeda.
.. According to the federal affidavit filed by customs investigator David Kane, the SAAR network was funded with millions of dollars in Saudi cash and was then used to funnel money to terror organizations such as that of convicted terror financier Sami al-Arian, the North American representative of Palestinian Islamic Jihad.
.. at least $26 million was routed to suspicious accounts in the Bahamas and the Isle of Man that may have been used to fund Hamas. In this way, wealthy Saudi backers of terrorism could use America’s own banking system to escape increasing financial scrutiny from the Saudi government.
.. One-time SAAR executive assistant Abdurahman Alamoudi (later convicted of a plot to assassinate Saudi crown prince Abdullah) boasted of his close ties to Presidents Clinton and George W. Bush, as well as to political fixers such as Americans for Tax Reform president Grover Norquist.
.. In Virginia alone, SAAR-network companies have made over $265,000 in political donations, with special distinction going to Reston Investments ($96,550), Mar-Jac Investments ($64,950), and the think tank IIIT ($25,500).
.. the SAAR network bought influence with local Arab-American community groups, and through them gained access to vice-presidential candidate Tim Kaine.
.. Now it seems that the SAAR network is interested in Virginia’s gubernatorial race. Lieutenant Governor Ralph Northam, the Democratic candidate for governor, recently received donations from at least two SAAR-network entities
Arab States Drawing Up List of Demands for Qatar
Saudi Arabia, the United Arab Emirates, Egypt and their allies are also seeking guarantees that Qatar’s government will stop its alleged financing of Middle East extremist groups and sever relations with the political leadership of the Muslim Brotherhood, a global Islamist movement, according to these officials.
.. These Arab states severed diplomatic ties with Qatar on Monday and closed their land and air borders, claiming the gas-rich monarchy was destabilizing the Mideast
.. However, Germany and Turkey made a show of support for Qatar on Wednesday, weighing in on a regional crisis that is beginning to drive a wedge between the U.S. and some of its closest allies.
.. But the Trump administration stressed it needed a clear list of grievances to pass on to Qatar’s leadership, and that Washington wouldn’t necessarily endorse them... Saudi Arabia, the U.A.E, and Egypt, in particular, charge Qatar has used Al Jazeera to try to destabilize their countries. One Arab official said reining in the media network will definitely be among the demands on the list.