Tag Archives: Panama Papers

$15 Trillion Hidden In Offshore Shell Companies To Avoid Taxes.

Posted on by

A recent study by the International Monetary Fund (IMF) has found that corporations and the wealthy have hidden $15 trillion in offshore shell companies for the purpose of avoiding taxes. At the newly reduced US corporate tax rate of 21 percent, that represents a loss of $3.15 trillion in revenue. And at Germany’s 29.79 percent tax rate, it would create more than $4.46 in revenue – revenue that could be used to improve infrastructure, to help millions out of poverty or to reduce the tax burden of ordinary people.

To put this monumental sum into perspective, it is roughly equivalent to China’s 2019 GDP of $15.5 trillion – the world’s second-largest economy. It’s more than 70 percent of the US economy of $21.4 trillion. And, by most estimates, the number of hidden dollars has increased by at least 10 percent over the last decade.

Given the impact of this lost revenue, one has to ask: Why have governments done so little to recapture the revenue and to penalize the perpetrators? It’s not as if they don’t know where the money is hidden. The study notes that 10 nations host 85 percent of the money – countries that include Luxembourg, the Cayman Islands, Isle of Man, Jersey, Ireland, Mauritius, Bermuda, Monaco, Switzerland and the Bahamas.

What’s more, recent leaks have given governments the names of people and institutions that have engaged in such tax shelters. The leaks known as the Panama Papers and the Paradise Papers have revealed millions of names and documents. Those named include numerous world leaders and celebrities. For example, the Trump name appears in the Panama Papers 3,540 times.

Maybe the answer for the inaction is the fact that most of the people who have the means and the opportunity to hide their money are those who control our government like Moscow Mitch; those who buy their way into office; those who use their money to lobby and influence office-holders. Or maybe it relates to the death of a journalist investigating the Panama Papers. Daphne Caruana Galizia, a reporter who was killed with a car bomb while following a lead in Malta. Her murder is not entirely surprising, since those hiding their assets include Vladimir Putin, Russian oligarchs and many individuals who are involved in organized crime. After all, these mobsters are likely using shell companies as a way to disguise their ill-begotten funds and to launder them.

Of course, that should give governments even more reason to halt the practice of hiding money. Doing so, would create obstacles for international crime syndicates and make it more difficult to finance operations such as drug trafficking and human trafficking. These and other heinous crimes annually cost governments and societies hundreds of millions of dollars to address.

If that’s not enough to motivate you to demand the action of your government, consider this: It almost certainly would cut your tax bill.

A Tsunami Of Coincidences.

Posted on by

As more connections between Russia and the Trump camp are exposed, Republicans would have you believe that they are mere coincidence, the product of successful people who operate multinational businesses. That’s an explanation only the chronically naive and the willfully ignorant could accept.

Following is a list of just those connections that have been identified. Even if no further relationships are uncovered, you have to be extraordinarily suspicious of this administration.

For example, President Trump met with Russia’s UN ambassador in 1986 and began pursuing business deals in Russia shortly afterward. The head of Russian-American Chamber of Commerce is a Trump associate. Trump has numerous connections with Russian oligarchs who have rented office space at the Trump Tower and purchased a Florida estate from Trump at nearly three times its value. Trump’s business was rescued during the Great Recession as the result of huge loans from Deutsche Bank after every US bank and other European banks refused to loan him money. (Deutsche Bank was under investigation for allegedly participating in a Russian money-laundering scheme until the Department of Justice suddenly ended the investigation after Jeff Sessions became the Attorney General.)

One of Trump’s former business partners is a Russian Mixed Martial Arts fighter who is also a friend of Putin’s. Trump held the 2013 Miss Universe pageant in Moscow hosted by a Russian oligarch who is friends with Vladimir Putin. At that time, it was reported that he met with Putin.

During the campaign, US intelligence agencies were alerted to the existence of a Russian dossier on Trump by British agent who feared it would allow the Russians to compromise the candidate. Trump’s campaign financier, Robert Mercer, has reported business ties to a Russian oligarch. (It must be noted that virtually all Russian oligarchs are friends with Putin.) Also, during the campaign, it was discovered that there was a mysterious Internet connection between members of the Trump campaign and Alfa Bank, the largest private commercial bank in Russia.

Following his inauguration, it was reported that Trump tried to lift the sanctions on Russia. He also called the Preet Bharara, the US attorney who was in the midst of prosecuting a case involving money-laundering. When Bharara refused Trump’s phone call, he was fired by Trump and, following his firing, the case was settled out of court.

President Trump took the extraordinary step to meet with the Russian Foreign Minister and Ambassador in the Oval Office. During that meeting, he leaked classified information about Israeli surveillance of ISIS and told Russians that, having fired that “nutjob” Comey, he was under less pressure.

Further, Trump’s name appeared in the Panama Papers more than 3,500 times. These papers were the result of a long-time investigation into tax evasion through offshore shell corporations, many of them involving Russian oligarchs.

And those are just Trump’s connections to Russia. There are many more involving his cabinet and political associates.

We all know about the investigations into Trump’s former National Security Adviser, General Michael Flynn. He had numerous meetings with the Russian ambassador before and after the election. He was paid to appear on Russian TV and for several speaking engagements in Russia.

Vice-president Pence, who led the Trump transition team following the election, recommended Flynn as the National Security Adviser despite being alerted by the Justice Department that Flynn may have been compromised.

Attorney General Jeff Session failed to disclose multiple meetings with the Russian ambassador during his confirmation hearing, which resulted in him recusing himself from the Flynn-Russian investigation. Nevertheless, Sessions advised Trump to fire FBI Director James Comey.

As a CEO, Secretary of State Rex Tillerson negotiated a deal between Gazprom, the Russian government-owned gas company, and ExxonMobil which would go into effect if sanctions were lifted. In recognition of his efforts, Tillerson received the Order of Friendship Award from Putin. Tillerson also has a personal relationship with the president of Rosneft, the government-controlled oil company.

Secretary of Commerce Wilbur Ross is a one-third owner of a Cypress bank known to hide money for Russian oligarchs. The other two bank owners are known allies of Putin’s.

The brother of Secretary of Education Betsy DeVos is Erik Prince, the founder of Blackwater, a friend and confidant of Putin’s. And it was her husband’s company (Spectrum Health) that was linked to the mysterious Internet connection between the Trump campaign and Alfa Bank.

It was recently revealed that Trump son-in-law and very special White House adviser, Jared Kushner is a “person of interest” in the Trump-Russian investigation for having numerous undisclosed meetings with the Russian ambassador before and after the inauguration. Purportedly one of those meetings involved an attempt to set up back-channel communications with the Russian government.

Former Trump campaign manager, Paul Manafort, is a former business partner with Ukrainian oligarchs who received sweetheart deals from Putin. He is also a former business associate with a former Russian intelligence agent who is a friend of Putin’s. Manafort was a campaign adviser to a Ukrainian presidential candidate with ties to Putin. And he was a paid lobbyist for Turkey, which is run by a dictator tied to Putin.

Carter Page, who served as a foreign policy adviser to the Trump campaign, met with the Russian ambassador in 2016. He has had multiple contacts with a Russian spy. His business partner is a Russian oligarch. He also owns shares in Gazprom and has met with leaders of Rosneft.

It has been reported that J.D. Gordon, who served as a national security adviser to the Trump campaign, also met with Russian ambassador and then-Senator Jeff Sessions at the Mayflower Hotel during the Republican national convention.

Longtime Trump associate and former campaign adviser, Roger Stone, has received money for numerous appearances on Russian television. More disturbing is the fact that Stone admitted to meeting with Wikileaks and the Russian hackers known as Gucifer over the release of emails from the Clinton campaign and Democratic organizations.

Felix Sater, a Trump business associate pleaded guilty in a stock fraud scheme with ties to the Russian mafia. He was also indicted in a stock fraud scheme with a convicted felon who brokered a $150 million deal with a hedge fund tied to Putin. That same hedge fund invested in the Trump Soho hotel.

Michael Cohen, the longtime lawyer for Trump’s businesses and Trump’s personal attorney, is associated with two Russian-leaning Ukrainians who are now under investigation by the Ukraine for treason.

Last, but not least, Donald Trump, Jr. has business ties to numerous people with Russian connections.

As I wrote at the beginning of this article, you might dismiss one or even a dozen such connections between Trump and Russia as coincidence; the result of operating a multinational company. But I now count more than 50. To dismiss that many as mere coincidence defies logic.

The Panama Papers? Why Not The Delaware Papers?

Posted on by

While the Panama Papers exposed thousands of politicians and billionaires who have used off-shore tax havens to hide trillions of dollars from taxes, the leaked papers will likely have little effect on Americans. It’s not that American corporations, billionaires and politicians are any more trustworthy than their foreign counterparts. It’s just that they don’t need to hide their money in the Cayman Islands when they can hide it in a much safer and less transparent refuge…the United States.

That’s right, the US is quickly becoming the world’s capital for money-laundering and tax shelters. Outside of Kenya, the US is now the easiest country in the world to open an anonymous shell corporation. No need to move your money off shore; no need to hire a Panamanian law firm; no need to place your trust in the economy of a third world country. Instead, you can open a shell company in Delaware, Nevada or South Dakota that will allow you to invest your money anonymously.

A recent article in the Washington Post noted that, if it weren’t for such schemes, the US Treasury would annually collect an additional $36 billion from wealthy individuals and an additional $88 billion from multinational corporations. That’s $124 billion a year that could be used to pay for public schools, to rebuild our crumbling infrastructure, and to improve public transportation!

And US citizens are not the only ones who are taking advantage of our lax tax laws.

According to TaxHavenUSA.com, the US has become the world’s largest tax haven for wealthy non-residents. You see, Congress, in an attempt to encourage more investment in US securities, made it easier for non-residents to invest through “pass through” or “disregarded” tax entities. These are the same vehicles the Koch brothers and their wealthy rightwing friends are using to influence elections without disclosing the source of their funding.

Through these LLCs, non-residents can easily open US financial accounts and make investments in securities without paying US taxes on the income they earn. They can avoid US capital gains taxes. Further, the investors in these entities can operate businesses outside the US while taking advantage of US corporate tax write-offs and incentives. Thanks to a variety of treaties, non-resident investors can reduce their tax liabilities in other countries, as well. They can transfer income to other, lower tax nations. All the while their investments are protected by the full faith and credit of the US. Their US bank accounts are even protected by the FDIC! Best of all, the investors in these entities can all remain anonymous.

So if you’re expecting the Panama Papers to reveal names like Charles Koch, David Koch, Sheldon Adelson, Mitt Romney, or Donald Trump alongside such people as David Cameron, Vladimir Putin and the House of Saud, don’t hold your breath. Like me, you’re probably going to be sorely disappointed.