The Rupee Team. 1) Definitions 2) Categorizing the users 3) Blames addressed to the tax havens 4)...

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


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


Definition


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.


• 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


Definition


The users

• Multinational companies handling worldwide

• Rich individuals

• States themselves

• Intermediate insuring connexion between both parties


Definition

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.


• 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.


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.


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?

The Rupee Team. 1) Definitions 2) Categorizing the users 3) Blames addressed to the tax havens 4)...

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