4.“Double Tax Treaties and Tax Information Exchange Agreements: What Advantages for Developing Countries?” Misereor, February 2010.
5.“Tax for Development,” OECD Observer, December 2009–January 2010.
6.Campaigns have been established to pursue this. See, for example, Tax Justice Focus 6, no. 1 (2010), which explores land value taxation.
7.This example of the street musician is borrowed from Henry Law, “A Tax That Is Not a Tax,” Tax Justice Focus 6, no. 1 (2010), www.taxjustice.net.
8.Raymond Baker, “Transparency First,” The American Interest, July–August 2010.
9.This last paragraph is taken from my article coauthored with Raymond Baker and John Christensen in the September–October 2008 edition of the American Interest, entitled “Catching Up with Corruption.”
INDEX
Abacha, Sani, 127
Abalone, 138
Abedi, Agha Hassan, 133–4
accountants, 7–9, 12–14, 16, 25, 79, 98–9, 101, 121, 130, 133, 142, 159, 161, 180, 184, 202–5, 208–9, 214–15, 217, 222, 226–7, 231, 249n5
adversarial legal system (Anglo-Saxon), 2
Africa
blaming, 8, 29, 183
and “capital flight,” 139–40
and developing nations: See developing nations
fleecing of, 136–40
and oil, 1–4, 7–9, 19–20, 23, 36, 69, 105, 138–9
post-colonialism, 2–8
poverty in, 2, 131
and taxation, 146–7
See Angola; Gabon; Nigeria; South Africa; Uganda
“aged shelf company,” 121
Alexander, Henry, 75
American Beef Trust, 36, 41
American Express, 103
American International Group (AIG), 67, 132, 218
Anatomy of Britain (Sampson), 64
Andorra, 17, 26
Angola, 1, 4, 84, 136–40, 249n18, 250n21,25
Anguilla, 87
Anstee, Nick, 71
Argentina, 35–8, 40, 42, 46–7, 58, 95–6, 142–3, 156–7, 173, 238n2
Arkansas, 120
Armour, Philip D., 36
arms trafficking, 131, 136–7, 178, 249n16,17
Arthur Andersen, 204, 253n1
Asset-Backed Securities Facilitation Act (2002), 201
Attlee, Clement, 72
audits, 202–5, 208–9, 214–15, 249n5
Australia, 7, 24, 26–7, 33
Austria, 17, 223
Autogue, Mr., 1–2, 5
automatic information exchange, 167, 222–3
Bahamas, 10, 18–19, 27, 38, 44, 79, 82, 89–90, 97, 99, 101, 111, 113, 117, 171–5, 177, 179, 244n59,4
Bakan, Joel, 158
Baker, Raymond, 29, 109, 139–40, 226, 246n4
balance-of-payments deficit, 107–8, 112, 116
Banco Mercantil de São Paulo, 172
Bank of America, 22, 103, 236n27
Bank of China, 71, 81
Bank of Credit and Commerce International (BCCI), 132–6, 165–6, 204, 249n5,13
Bank of England, 63–6, 75–6, 78–82, 86, 89, 91–3, 97, 104, 114, 134–6, 166, 217, 231, 241n9, 244n65, 245n30
Bank for International Settlements (BIS), 169, 212, 233n2, 256n40
Bank and Trust Company Insurance Powers Act (1989), 201
Barclays (Britain), 19, 99, 104–5, 148
Basler Handelsbank, 157
Batista, Fulgencio, 88
Bear Stearns, 68, 212–13
bearer bonds, 75–6, 117
Becerra, Larry, 81
Beckler, Henry, 194
Belgium, 17, 97, 104
Benn, Tony, 104
Bennett, Jack, 108
Berlusconi, Silvio, 131
Bermuda (British overseas territory), 14, 18, 23, 26, 87, 89, 96, 148, 227, 234n12 “Big Bang” (1986), 66, 85, 115, 182, 212
Big Four accounting firms, 25, 33, 165, 202, 222, 253n1
See Deloitte; Ernst & Young; KPMG; PricewaterhouseCoopers
Big Pharma, 165
Biondi, Frank, 194–7, 199, 200–1, 254n4
Birkenfeld, Bradley, 177–8
Black, Bernard, 124
Blair, Tony, 73, 127
blame-the-victim, 8, 29, 140–4, 183
Blood Bankers (Henry), 140–1
Blum, Jack, 31, 102, 105–6, 111–13, 132–5, 169
Bockel, Jean-Marie, 6
Bodden, Roy, 95–6
Boeing, 22
Bond, James, 80
Bongo, Omar, 2–6, 233n7
Bonlat Financing, 166
Bono (musician), 17, 192
Bordieu, Pierre, 30
Boston Consulting Group, 142
Botswana, 19
Bout, Victor, 178
BP, 22
Bravakis, Ted, 181
Brazil, 26, 37, 98, 143, 156, 169, 172, 174, 223
Bretton Woods Conference (1944), 55–8, 63, 130, 240n17, 246n11
bribes, 3, 6, 17, 29, 89, 113, 127, 133, 176, 229, 246n4
British Caribbean, 22, 27, 67, 75, 79, 87–106, 114–15, 133, 150, 161, 172, 245n10, 247n18
British Crown Dependencies, 16, 17–20, 25, 69, 79, 87–8, 92, 103–5, 115–16, 146, 236n23
See Guernsey; Isle of Man; Jersey
British empire, 8, 16–20, 35–7, 40, 49–50, 54–5, 65–6, 75–6, 86, 87–8, 92, 97, 109, 129, 147, 185, 224, 235n18,20, 236n23, 241n9
British meatpackers, 35–47
British Overseas Territories, 17, 19, 25, 79, 87, 90–2, 103, 236n23, 31
See Bermuda; British Virgin Islands; Cayman Islands; Gibraltar; Turks and Caicos
British Queen, 18, 47, 71, 87, 94, 103–4
British tax havens, 16, 17–25, 31, 68–9, 85, 87–106, 108, 128–9, 147, 223–4
center of: See City of London loopholes, 67–8, 99–100, 110, 112, 175, 223, 241n15
reform of, 224
as spiderweb, 18–25, 31, 68–9, 85, 87–106, 108, 128–9, 147, 224
statistics on, 17
and Sterling Area, 92
See British crown dependencies; British overseas territories; British zones of influence; City of London; Offshore Magic Circle
British Virgin Islands (British overseas territory), 16, 18, 27, 87, 147, 236n30
British zones of influence
See Bahamas; Botswana; Dubai; Ghana; Hong Kong; Ireland; Singapore; Vanuatu
Brittain-Catlin, William, 166
Brown, Gordon, 168, 187
Brown, J. Robert, 124
Brown, Pat, 97
Buchanan, James, 151, 161
Bueller, Cory, 126
Buffett, Warren, 32
bundling, 43, 159
Burke, Edmund, 206
Burn, Gary, 67, 75, 241n9, 243n43
Bush, George H. W., 22, 151, 160
Bush, George W., 84, 112, 120, 152, 167–9, 236n31
and “on request” information, 167–9
tax loophole, 112
tax regulation, 120
Business and Investors Against Tax Haven Abuse, 15
Cain, P. J., 66
capital controls, 56–61, 63, 82, 84, 240n16,17, 246n11
“capital flight,” 20, 30, 53–4, 57–8, 93, 97, 110, 139–43, 160, 183, 250n26
European flight capital (1930s), 58
capital flows, 9, 18, 20–1, 28–30, 32, 50–61, 63, 75, 78, 80, 82, 84–5, 92–3, 108–9, 112, 127, 130–1, 138–40, 144, 164–5, 183, 217, 219, 221–2, 237n44, 240n16,17, 241n9, 246n4,11, 257n50
controls on: See capital controls and corporations, 29
free, 55–7, 219
inflows, 21, 30, 58–60, 109, 165, 237n44, 241n9
and Keynes, 50–61
and language, 30
outflows, 30, 75, 92, 112, 138–9, 183, 217, 237n44, 241n9
and social capital, 164–5
See capital controls
capital gains tax, 155, 162–3
Capone, Al, 88
Carlisle, Rodney, 23
Carter, Jimmy, 114, 117, 20
0
Carteret, George, 106
Carville, James, 52
Cary, William, 124
“casino banking,” 67
Castle Bank and Trust (Cayman) Ltd., 100–1
Castro, Fidel, 88–9, 93, 99
Cato Institute, 150, 155, 163
Cayman Islands (British overseas territory), 6, 10, 12–13, 18–19, 23–4, 26–7, 44, 46, 74, 79, 82, 87, 90–6, 99–103, 106, 125–6, 128, 132–5, 161, 163, 165–7, 171–92, 211–12, 214–15, 223, 234n12, 235n22, 236n31, 243n59, 248n39, 256n40
British power structure within, 18, 94
and Confidential Relationships (Preservation) Law, 101–2
and denial of tax haven status, 12–13
and drug money, 101–2
employment in, 171–92
and Enron, 23
and hedge funds, 26
history of as tax haven, 90–6
“Star Trust,” 46
statistics on, 18
Cayman Islands Monetary Authority (CIMA), 214–15
Center for Freedom and Prosperity (CF&P), 150, 160
Center for International Policy (Washington, D.C.), 29
Central Bank of Philippines, 141
Chait, Jonathan, 170
Chang, Ha-Joon, 59
Charles II of England, 72–3, 104
Chase Manhattan, 107–8, 112, 114, 172, 197
Chase National Bank, 194–7, 200–1
chasse gardée, 3
Chenoweth, Neil, 7
Chicago, 36, 40–1, 61, 125
meatpackers, 36, 40–1
China, 1, 12, 14, 16, 27, 36–7, 60, 71, 81, 85, 88, 105–6, 121, 147–8, 164, 169, 217
and Britain, 105–6
statistics on oil, 1
Chirac, Jacques, 4
Christensen, John, 19, 103–4, 115–16, 146, 150, 170, 182–91, 207, 233n1
Churchill, Winston, 49
CIMA: See Cayman Islands Monetary Authority
Cisco, 14
Citicorp (Citibank), 8, 80–1, 141–2, 152, 194–6, 201
Citigroup, 20, 68, 103
Citizens for Tax Justice, 112, 159, 170
City of London (England, U.K.), 17–19, 24, 26, 54–5, 61, 63–86, 87–8, 98, 103, 105–6, 109, 115, 129–30, 134, 136, 147–8, 182, 212, 222, 224, 235n18, 236n23,25,28, 239n13, 242n27,32,34, 243n36,37,42, 244n72
and Britain’s offshore spiderweb, 68–9
and the Caribbean, 87–106
central organization of, 70–4
See City of London Corporation
and City Cash, 74
controlling role of, 45–6, 96–6
and “domicile” rule, 69
global reach of, 18
history of, 63–86, 87
See “Big Bang”; Euromarkets and international financial deregulation, 85–6
and lending, 76–8
and “London-grad,” 69
and loopholes, 67–8
as old boys network, 64–5
and “rehypothecation,” 68
and secrecy, 69
and Special Purpose Vehicles (SPVs), 26
tentacles of: See British Crown Dependencies; British overseas territories; British zones of influence and the U.S., 67–8, 78–84
City of London Corporation (Corporation of London), 70–4, 76, 85–6, 224, 242n25, 243n36–37, 244n72
head of: See Lord Mayor of London
history of, 71–2
and voting rights, 71
civil society, 170
Clinton, Bill, 52, 119–20, 150, 160
Clinton, Hillary, 30, 58
Coalition for Tax Competition, 150
Cold War, 75, 109, 138
Coleman, Norm, 121
Colombia, 26, 101, 111, 133, 136
Medellin drug cartel, 101, 133
colonialism, 2–8, 20, 23, 65, 88–9, 93–5, 104–5, 117, 138, 147, 161, 184
Commodity Futures Trading
Committee (CFTC), 68
Compact of Free Association, 22
comparative advantage theory, 16
competition, tax, 149–56
Confidential Relationships (Preservation) Law, 101–2
Congdon, Tim, 66
ConocoPhilips, 22
Cook, Geoff, 168
Cornfeld, Bernie, 97–8
corporate governance, 39, 85, 122–5, 201–2
corporate responsibility, 228–9
The Corporation (Bakan), 158
Corporation Trust (Delaware), 125–6
corruption, 126–8, 229
Corruption Perceptions Index (CPI), 126
country-by-country reporting, 222
Cowperthwaite, Sir John, 105
Craven, John, 81
credit cards, 193–201
criminal money
See arms trafficking; bribes; drug money; mob/mafia; terrorist financing
Crocodile Dundee, 33
Crook, Kenneth, 93–5
Cuba, 88–9, 93
currency trading, 63–4, 70
Cyprus, 10, 27, 33, 138, 238n52
Dai Xianglong, 86
Davison, Daniel, 81
Deepwater Horizon, 22
de la Torre, Lisandro, 36, 38, 46–7
de Rugy, Veronique, 150
deferrals, tax, 112–13
Delaware, 22, 26, 39–40, 120–1, 123–6, 150, 166, 193–201, 204, 207–12, 214, 222, 228, 247n31, 248n34,39,42, 254n3,4, 255n18, 256n40
Chancery Court, 124–5, 248n34
Corporation Trust office, 125–6
history of offshoring, 39–40, 123–6
and jurisdictions, 193–201, 204, 207–12, 214
and securitization/bundling, 26, 125
and usury, 193–5, 200, 204
Delaware Statutory Trust Act (1988), 201
DeLay, Tom, 160–1
Deloitte & Touche, 25, 202, 209
DeLong, Bradford, 49, 55, 158–9
democracy, 7–8, 13, 31, 33, 42, 56, 71, 82, 102, 113, 123, 129, 131, 144–8, 162, 164, 170, 182, 185, 189, 192, 195–6, 198, 206, 210, 212, 219, 222, 224
and taxation, 144–8
Democratic party, 31, 82, 123, 185, 195, 198, 254n4
Democratic Republic of Congo, 131
deregulation, 32, 52, 66, 74–6, 85, 87, 115, 129–30, 132, 155, 159, 182, 193, 200, 209–10, 212, 217
developing countries, 8, 28–30, 57–60, 91, 93, 97, 100, 108, 126, 129–48, 155–6, 164, 169, 183, 217, 222–5, 227, 229, 236n29, 237n44, 240n22, 246n13, 250n26
and blame-the-victim, 8, 29, 140–4
and capital, 57–60
and capital flight, 139–43
and mobile phone charges, 148
and the offshore system, 129–48
and reform, 223–4
and sovereign debt funds, 143–4
and tax, 144–8
and tax treaties, 147–8
See Bank of Credit and Commerce International
Deviers-Joncour, Christine, 5
Dill, James B., 39
Disney, 7, 88
Double, Paul, 73
double taxation, 26, 41–2, 130, 146
defined, 26
“Double Irish,” 14
drug money, 6, 9, 18, 20, 22, 26–7, 29, 88, 101–2, 111, 120, 131–3, 136
du Pont, Pierre S. (“Pete”), 194–9
Dubai, 19
Duggan, Nick, 165–6
“Dutch Sandwich,” 14, 117
Dutch Special Financial Institutions, 27
Dumas, Roland, 5
The Economic Consequences of the Peace (Keynes), 50
Ernst & Young, 25, 202, 205, 209, 249n5
The Economist, 7, 22, 24, 237n36
“efficiency,” 16, 41, 53, 130, 153–4, 158–66, 214, 219, 229–30
Egypt, 65–6, 86
Elf Aquitaine (France), 2–8, 20, 28, 70, 131, 136
elites/the rich, 2–4, 6–10, 11, 16–17, 20–3, 26, 30–2, 35, 59, 90–1, 100, 106, 126, 131, 140–5, 148, 157–8, 185, 187, 192, 195, 210, 224
<
br /> Elmer, Rudolf, 147–8, 192, 214–15
Engels, Friedrich, 104
Enron, 23, 68, 132, 166, 202, 204, 218
Eurobonds, 75–6
Eurodad, 30
Eurodollar market: See Euromarket
Euromarkets, 11, 66–7, 75, 77–83, 112, 114, 129–30, 241n11, 243n59
reserve requirements, 76–8
Euromoney, 80
European tax havens, 16–17, 21, 23
See Austria; Belgium; Euromarkets; Luxembourg; Netherlands; Switzerland
ExxonMobil, 108
Fairchild Corp. (U.S.), 2
Falcone, Pierre, 138
Federal Reserve Bank of New York, 78, 141
Fédération Internationale de Football Association (FIFA), 165
FedEx, 22
Field, Anthony, 100–1
finance and ownership, 52–3
financial
capital: See capital flows
institutions, 8, 20, 27, 69, 119, 175, 212, 214
liberalization, 60–1, 67, 75, 86, 204
Financial Center Development Act (1981), 194, 197–200
Financial Secrecy Index, 128
Financial Stability Forum, 169
Financial Times, 1, 126, 187, 208, 211, 213
financialization, 51–3, 84 The Firm (Grisham), 181
First National Bank of Omaha, 193
flags of convenience, 22–3
le Floch-Prigent, Loïk, 4
Florida, 21–2, 89, 101, 110–12, 115, 120–1, 143, 157, 165, 218
Flowers, Mike, 110
flows of capital: See capital flows
food industry, 13–15, 35–40
See meatpacking
Foreign Act Development (1986), 200
Foreign Corrupt Practices Act, 17
Fox News, 7
France, 1–8, 16, 20, 24–8, 37, 65, 87–8, 97, 104, 108, 111, 116, 131, 136–7, 147, 152, 157, 159, 183, 191, 209, 233n1, 249n16, 251n39
inquisitorial system, 2
post-colonial policy in Africa, 2–8
See Elf Aquitaine
fraud, 5, 17, 24–7, 29, 59, 102, 113, 120, 131–7, 166–7, 191, 213, 218, 246n4, 249n16
free market system, 23, 51, 59, 61, 74, 150, 246n4
Friedman, Milton, 78, 105, 159, 161
Friedman, Thomas, 51
Gabon, 1–7, 20, 136
Galbraith, J. K., 190
Gaydamak, Arkady, 137–9, 249n16–18, 250n21
General Theory of Employment, Interest and Money (Keynes), 50
Geneva, 10, 16, 67, 96–7, 137–8, 146, 153, 176, 249n18
Geoghegan, Thomas, 199–200
George, Eddie, 76
Germany, 3, 5, 49, 50, 97, 138, 146–7, 185, 187, 209, 239n13
Ghana, 19, 65
Gibraltar (British overseas territory), 18–19, 27, 87
Treasure Islands: Dirty Money, Tax Havens and the Men Who Stole Your Cash Page 36