“Where do multinationals pay taxes and how much?” Gaining insight from international tax experts, Backlight takes a look at tax havens, the people who live there and the routes along which tax is avoided globally. Those routes go by resounding names like ‘Cayman Special’, ‘Double Irish’, and ‘Dutch Sandwich’. A financial world operates in the shadows surrounded by a high level of secrecy. A place where sizeable capital streams travel the world at the speed of light and avoid paying tax. The Tax Free Tour is an economic thriller mapping the systemic risk for governments and citizens alike. Is this the price we have to pay for globalised capitalism? At the same time, the free online game “Taxodus” by Femke Herregraven is launched. In the game, the player can select the profile of a multinational and look for the global route to pay as little tax as possible. Originally broadcasted by VPRO in 2013.
When the son of the president of a desperately poor country starts buying mansions and sportscars on an official monthly salary of $7,000, Charmian Gooch suggests, corruption is probably somewhere in the picture. In a blistering, eye-opening talk (and through several specific examples), she details how global corruption trackers follow the money — to some surprisingly familiar faces.
http://democracynow.org – All eyes are on the Supreme Court nomination of Neil Gorsuch, who is facing his second day of confirmation hearings. But Trump has 123 other federal judgeships to fill, because Senate Republicans blocked many of Obama’s nominees. We take a look at how the top official at the Federalist Society, named Leonard Leo, is playing a key role in helping Trump reshape the nation’s judicial landscape from behind the scenes. We speak with Pulitzer Prize-winning journalist Eric Lipton of The New York Times. He recently co-wrote a piece headlined “In Gorsuch, Conservative Activist Sees Test Case for Reshaping the Judiciary.”
For President Trump, Saudi Arabia is not just a political ally. It has also been a customer.
Trump’s business relationships with the Saudi government — and rich Saudi business executives — go back to at least the 1990s. In Trump’s hard times, a Saudi prince bought a superyacht and hotel from him. The Saudi government paid him $4.5 million for an apartment near the United Nations.
Business from Saudi-connected customers continued to be important after Trump won the presidency. Saudi lobbyists spent $270,000 last year to reserve rooms at Trump’s hotel in Washington. Just this year, Trump’s hotels in New York and Chicago reported significant upticks in bookings from Saudi visitors.
“Saudi Arabia, I get along with all of them. They buy apartments from me. They spend $40 million, $50 million,” Trump told a crowd at an Alabama campaign rally in 2015. “Am I supposed to dislike them? I like them very much.”
The Trump Organization issued a statement Thursday saying that although it has pursued new hotel deals in Saudi Arabia in the past, it has no current plans to do so.
.. Saudi royalty has been buying from Trump dating to 1995, with some of the deals coming during periods when Trump was in need of cash.
.. In 1991, when Trump was nearly $900 million in debt from failed casino projects, he sold his 281-foot yacht to Saudi Prince Alwaleed bin Talal for $20 million.
.. A few years later, the prince bought a stake in Trump’s Plaza Hotel by agreeing to pay off some of Trump’s debts on the property.
.. Tim O’Brien, a journalist who wrote the 2005 biography “TrumpNation,” said these deals were one-sided — in the prince’s favor. He said Trump was in dire financial straits, so the prince got a good price.
.. But there was no indication, back then, that Saudis wanted to curry favor with Trump by giving him a better deal, O’Brien said. “Talal saw him as a profit center,” he said, “not as somebody who he was cultivating as a future president.”
.. In 2001, Trump sold the 45th floor of his Trump World Tower, in New York, to the Kingdom of Saudi Arabia for $4.5 million.
.. More recently, Prince Nawaf bin Sultan bin Abdulaziz al-Saud acquired what would become a 10,500-square-foot triplex apartment in a Trump building on the west side of Manhattan. Nawaf sold it in February for $36 million.
.. During Trump’s presidential campaign, he also seemed to be exploring plans to build a hotel in Jiddah, Saudi Arabia’s second-largest city, part of an international expansion plan. In August 2015 — two months after he got into the race — Trump established eight new shell companies that included the name “Jeddah.”
.. The names of those corporations — four of which also included the word “hotel” — seemed to indicate Trump was planning a hotel in the city.
.. Since Trump won the presidency, Saudis have been patrons of three of his 11 Trump-branded hotels.
.. In early 2017, a lobbying firm working for the Saudi Embassy reported spending $270,000 on food and lodging at Trump’s hotel in downtown Washington. The rooms were used to house people visiting Washington to lobby against a law that the Saudi government opposed — a law that allows victims of the Sept. 11, 2001, terrorist attacks to sue the Saudi government.
.. the general manager at Trump’s hotel on Manhattan’s Central Park West
.. One major reason, General Manager Prince A. Sanders wrote: “a last-minute visit to New York by the Crown Prince of Saudi Arabia.”
Sanders told the investors that the Trump hotel’s Saudi guests did not include Crown Prince Mohammed bin Salman himself because the hotel did not have a suite large enough to suit him. But, he said, “due to our close industry relationships, we were able to accommodate many of the accompanying travelers.”
.. Saudi bookings at Trump Chicago had gone from 81 “room-nights” in the first half of 2016 to 218 in the first half of this year — an increase of 169 percent. (In the same time frame, bookings from Saudi Arabia’s rival Qatar increased 1,633 percent, from three “room-nights” to 52).
When one of the defense lawyers tried to suggest to Mr. Manafort’s tax accountant Monday that Mr. Gates had kept Mr. Manafort in the dark about his own finances, the accountant, Cynthia Laporta, pushed back.
“In most instances, it was clear that Mr. Manafort was aware what was going on,” she testified.
Mr. Gates’s statements reinforced that picture. He said that Mr. Manafort knew it was illegal not to report his foreign bank accounts to the Treasury Department but asked Mr. Gates to help him deceive his accountants so he could conceal income and pay less in taxes.
“I assisted Mr. Manafort in filing false tax returns,” Mr. Gates testified. “We didn’t report the income or the fact that the accounts existed.”
.. He said that some of Mr. Manafort’s income was disguised as loans from 15 shell companies that Mr. Manafort controlled, most of them in Cyprus... Once that income dried up, the government alleges, Mr. Manafort, with Mr. Gates’s help, falsified financial records so he could obtain bank loans to maintain his opulent lifestyle... Gates testified that Mr. Manafort also was paid $4 million a year to help Mr. Yanukovych govern after he was elected president in 2010... while Mr. Yanukovych ran on a platform of integrating with the European Union, while also maintaining good relations with Russia, he eventually pivoted toward Moscow.. Mr. Gates also said that two American lobbying firms — the Podesta Group and Mercury Public Affairs — assisted with their policy consulting efforts. Mr. Mueller’s team has referred cases related to the firms’ work to federal investigators in the Southern District of New York... Mr. Manafort asked Mr. Gates to help arrange inauguration tickets and administration posts — including secretary of the Army — for a banker from whom Mr. Manafort is accused of fraudulently seeking loans, Mr. Gates testified.
.. Emails presented during Mr. Manafort’s trial showed that he sought the favors for Stephen M. Calk, the founder and chief executive of The Federal Savings Bank of Chicago. The bank began issuing loans that eventually totaled $16 million to Mr. Manafort in the days after Mr. Trump’s election based on false information provided by Mr. Manafort.
.. Mr. Gates said he was involved in discussions about nominating Mr. Calk to an economic advisory council.
.. Mr. Gates, 46, admitted Monday that he was guilty of a long list of crimes, including stealing hundreds of thousands of dollars from Mr. Manafort’s accounts by inflating his business expenses. He said that while he was helping Mr. Manafort hide income to evade taxes, and later to inflate his income to obtain bank loans, he was doing essentially the same on his own behalf.
.. In exchange for his cooperation, the government in February agreed to dismiss 22 criminal charges stemming from his involvement in the scheme for which Mr. Manafort is now on trial.
.. sentencing guidelines recommend a prison term of up to six years, he testified that prosecutors have agreed not to object if his defense attorney argues that he should receive probation.
There is no right to bear arms in Russia, and under this regime there never will be. According to court papers, Butina nevertheless convinced some naive members of the National Rifle Associationthat she was a genuine activist. In doing so, she gained access to their world.
.. They were both seeking to assist political movements they believed to be pro-Kremlin (the Communist Party of the 1930s; the pro-gun wing of the Republican Party of the 2010s). They were both backed by Kremlin money, diverted through cutouts (the Communist International, in the former instance; a couple of Russian oligarchs, allegedly, in the latter).
.. Butina, even if considering only her role as an open, pro-Kremlin activist, also has many counterparts, agents of influence who are openly agitating for Russian interests, now on the far-right edge of Western politics instead of the far-left.
- Gianluca Savoini, the leader of the enigmatic Lombardy-Russia Cultural Association, seems to perform a similar role in Italian politics, even showing up recently as a member of an official Italian government delegation to Moscow.
- Bela Kovacs , a Hungarian member of the European Parliament, is on trial in Budapest on a charge of spying on European Union institutions on behalf of Russia.
.. they too are part of a long-term project, though it’s not a proletarian revolution. Instead, it’s a kleptocratic coup d’état: The modern Kremlin project seeks to undermine Western democracies, break up the E.U. and NATO, and put corrupt relationships rather than the rule of law at the center of international commerce.
.. it’s worth remembering why Golos and his network failed. In large part,
- it was because the center-left — especially the anti-Soviet wing of the American trade union movement — rejected Soviet-style communism in the United States. It’s also because,
- in the 1940s and 1950s, the American political establishment, Democratic and Republican, unified around the need to defeat Soviet-style communism in Europe. And it’s because,
- even in the depths of the Depression, the majority of Americans were never beguiled by the appeal of authoritarianism.
.. A wing of the Republican Party is preparing to double down and support the Russian autocracy, which it believes, mistakenly, is “Christian.”
.. To push back against them, as well as their equivalents from the rest of the autocratic world, we will need not only to catch the odd agent but also to
- make our political funding systems more transparent, to
- write new laws banning shell companies and money laundering, and to
- end the manipulation of social media.
It took more than a generation for Americans to reject the temptations of communist authoritarianism; it will take more than a generation before we have defeated kleptocratic authoritarianism too — if we still can.
But the prime minister should have gone in harder. If she really wanted to teach Russia a lesson, she should have announced measures allowing her government to scrutinize the billions of dollars invested in Britain by Russian oligarchs and their associates, some of whom have criminal or intelligence backgrounds. This kind of transparency would hit President Vladimir Putin and his allies where it hurts most: their bank accounts.
To this day, anybody from Mexican cartels to Saudi arms dealers to Russian oligarchs (and even American real estate magnates) can invest money in Britain through anonymous companies registered in Crown Overseas Territories like the British Virgin Islands. In London’s central borough of Westminster alone, some 10,000 apartments and houses are owned by companies whose proprietors are entirely unknown to the government.
.. In 2016, Mrs. May’s predecessor, David Cameron, was preparing legislationto force anonymous companies to reveal their real owners. Then he lost the referendum on Britain’s membership in the European Union.
.. Mrs. May probably has her reasons for not going forward with the law. She is the country’s weakest prime minister to assume office since World War II. Brexit has not only polarized public opinion but also created bitter divisions in her cabinet, and several ministers are open about their desire to take her place.
Because of this, she has had to handle the relationship with Russia after the murder attempt with great care. If she gets it wrong, her already enfeebled administration could collapse... Mr. Putin may have realized how weak Mrs. May is, which is why he would decide to act now to take revenge on a man he sees as a traitor and to cause Britain new headaches.Russia’s motivation is understandable. Its economy faces serious structural problems, including a dangerous overreliance on oil and gas. At the same time, business leaders are worried about the country’s long-term demographic decline. Mr. Putin seeks to bolster his domestic popularity by looking powerful as he sows discord with the West... The government is reaping the dubious rewards of having opened the City of London since the late 1990s to foreign capital with no questions asked about its origin.The initial aim of this permissive approach was to persuade investors that London — rather than New York — was best suited to be the world’s financial capital. Among the many to take advantage of the light-touch regulations were oligarchs, spies and gangsters... Russian oligarchs have made an indelible mark on London. Some own newspapers, others our most successful soccer clubs, while many more own huge chunks of high-end property in the most fashionable parts of the capital... And some of those characters are close collaborators and friends of President Putin... If Mrs. May is convinced that Russia is behind this attack, then she needs to devise a way of getting to President Putin’s friends and collaborators. And that means great transparency. She should reintroduce the stalled proposal to force anonymous companies to reveal the sources of their cash.