Dr. Jason Hickel, LSE lecturer who was born and brought up in Swaziland, writes on Transparency International's latest Corruption Perception Index and its eyecatching global map. Here's a tiny snippet to encourage you to read the rest of the article on Al Jazeera:
Many international development organisations hold that persistent poverty in the Global South is caused largely by corruption among local public officials. In 2003 these concerns led to the United Nations Convention against Corruption, which asserts that, while corruption exists in all countries, this "evil phenomenon" is "most destructive" in the global South, where it is a "key element in economic underperformance and a major obstacle to poverty alleviation and development". There's only one problem with this theory: It's just not true.[more inside]
The secretive business havens of Cyprus and the Cayman Islands face a potent rival: Cheyenne, Wyoming. At a single address in this sleepy city of 60,000 people, more than 2,000 companies are registered. The building, 2710 Thomes Avenue, isn't a shimmering skyscraper filled with A-list corporations. It's a 1,700-square-foot brick house with a manicured lawn, a few blocks from the State Capitol.[more inside]
Grantor retained annuity trusts are a method that the ultra rich use to avoid gift taxes. Many lawyers insist that these trusts are a cornerstone of any sound estate plan.
Dave Hartnett was surprised with an award this week for his services to tax avoidance. He was celebrating his retirement as head of the UK's tax and customs department, where he agreed "sweetheart" deals with Goldman Sachs and Vodafone, letting them off outstanding tax bills. Cue some pleasantly awkward confusion as the partygoers realise what is going on.
"So when she studies the Greek balance sheet and demands measures she knows may mean women won't have access to a midwife when they give birth, and patients won't get life-saving drugs, and the elderly will die alone for lack of care – does she block all of that out and just look at the sums?" [more inside]
Corporations don't dodge taxes. People do. "The report found that the CEOs of 25 major companies paid themselves more than their companies paid in Federal income taxes. Exhibit 1 on page 31 names and shames them (well, assuming they are capable of shame), and they include John J. Donahoe of eBay, Robert Coury of Mylan Labs, Jeff Immelt of GE, and Robert Kelly of Bank of New York. The New York Times article on the report elicited some not-convincing rebuttals." NYT version [via]
"People have always thought of tax havens as sideshows to the main event, whereas in fact they are central to the global economy". . . Treasure Islands: Tax Havens and the Men who Stole the World [more inside]