Tuesday, 15 April 2014


Letter to the Guardian - TAX JUSTICE & INJUSTICE - 20 FEB 2014.

Many congratulations to The Guardian, The Midcounties Co-operative, Richard Murphy and the other experts “at the table” for designing and promoting the “Fair Tax Mark to reward tax justice” – Guardian 20th Feb 2014. 

Execution pivots on the vexed question of what is “the right amount of tax” for businesses to pay, in the regions where their sales and revenues actually occur. Honest auditors are highly paid to report correct sales figures, from which taxable profits can be (and internally are) accurately calculated. The real data for levying Fair Tax exists. 

However, the evasive businesses send internal invoices, usually retrospectively, from associated firms, to siphon the profits to tax-havens. These transactions (transfer-pricing; loan interest; management fees; royalties; dividends to wives in Monte-Carlo etc.) always have been and are illegal in tax law in all OECD regions – contrary to your bland statement “These companies aren’t breaking any laws – they are simply taking advantage of the complexity of the corporate tax system”. 

They are not complex; and they are criminal false accounting. Most tax experts work for or with auditors who since 1980 have signed false audit certificates and submitted false tax returns to reduce tax, as happened at Parmalat and ENRON, the latter case killing Arthur Andersen. In the 34 years 1980-2014, many top accountants and directors have become so habituated to creating false-invoices, increasingly unquestioningly approved by politically bullied local tax collectors, that the accountants convince themselves and their trainees that they are acting legally. They are not now and have not been legal. They were and are guilty of fraudulent conspiracy to evade tax.  

Tax collectors still apply tough penalties on local people who send themselves “tax deductible” invoices. Try it yourself if you doubt me. 

We do not want to see hundreds of top executives jailed for fraud (who signed all the false Balance Sheets and Tax Returns?) but the UK must recover the estimated £2 trillion (8 million jobs for ten years) of tax-evasion-capital-flight gouged from our UK businesses over the past 30 years. It is vital to apply long established tax laws, as are applied to small businesses, to all UK trading since 1980, in order to claw-back past tax deductibility and to repatriate the massive illicit offshore funds, frozen in 70 or more tax-havens. 

As the Guardian revealed last year, there are 130,000 anonymous bank accounts in the British Virgin Islands (BVI) alone; just one of 70 criminal tax havens. Then, all nations will follow the UK lead, refill their public treasuries and re-boot the world’s economy. Latest estimates from Wall Street and the OECD are from $21 to $32 trillion hidden offshore – it all got there through false accounting. Fair Tax accounting will bring it home.

Noel Hodson, Oxford
Founder - McVeigh Hodson Blackstone Franks Accountants
Contributor – Eurodad Capital Flight  and  Tax Justice Network

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