Brexit

Are ERG members the guardian angels of British tax-dodging practices?

The European Research Group (ERG) are the guardian angels of British tax-avoiding practices and British tax havens.

On 19 April 2016, all ERG members who were also MPs at the time, voted against giving the Financial Conduct Authority and Prudential Regulation Authority duties to combat abusive tax avoidance arrangements, including by ascertaining and recording the beneficial ownership of trusts.

If the UK leaves the EU but remains in the single market or the customs union, then the British government would have to implement the new EU Anti Tax Avoidance Directive, which is why they are so keen to leave the EU without a deal.

1. WHAT HAPPENED THAT LED TO THE EU REFERENDUM?

After the EU decided to bail out Greece from bankruptcy, the EURO exchange rate slumped, threatening the economic stability of the Eurozone.

Whilst the terms of the loan were still being negotiated, the EU received another major blow in October 2010, when the former French finance minister Christine Lagarde issued to the Greek authorities a spreadsheet containing roughly 2,000 potential tax evaders with undeclared accounts at Swiss HSBC bank’s Geneva branch. 

Wealthy Greek citizens and businesses included in “Lagarde List” were accounted for an estimated €26 billion and €29 billion of the lost annual tax revenues, contributing to the Greek crisis.

https://www.theguardian.com/world/2013/jan/07/greece-christine-lagarde

The sheer scale of tax evasion and the inability of Greek authorities to curb it, finally prompted Brussels to take action and these practices from companies and individuals that generate income in the EU member states.

Speaking at the G20 summit press conference in 2011, the French President at the time, Nicola Sarkozy declared that tax havens will no longer be tolerated and countries that continue to protect them, such as the UK, will be outcast from the developed economies.

2. WHEN DID DAVID CAMERON CALL THE EU REFERENDUM?

In 2012, David Cameron declared he is prepared to consider the EU referendum, however “only when the time is right”, and his momentous announcements on the EU referendum coincide with the key milestones of development of the new EU Anti Tax Avoidance Directive, whereas:

• In 2013, the European Commission produced their action plan to clamp down on tax avoidance, and within a month, David Cameron announced that he changed his mind, stating that he favours an EU referendum and that he will be ” pushing to exempt Europe’s smallest entrepreneurial companies from more EU Directives.”

https://www.gov.uk/government/speeches/eu-speech-at-bloomberg

• In 2016, the European Commission produced the first draft of the EU Anti Tax Avoidance Directive and within a month, David Cameron announced the date for the EU referendum.

https://ec.europa.eu/taxation_customs/business/company-tax/anti-tax-avoidance-package/anti-tax-avoidance-directive_en

3. WHY DID DAVID CAMERON’S REMAIN CAMPAIGN FAIL AT THE EU REFERENDUM?

Although proclaiming himself as the British Prime Minister who believed that we should have remained in the EU, David Cameron decided to hold the EU referendum.

After he announced the date for the EU referendum, Cameron campaigned for the UK to remain in EU, but one can’t help wondering why didn’t inform the British voters that by remaining in the EU, the British government would have to implement the new EU Anti Tax Avoidance Directive?

If he informed the British voters that the EU Anti Tax Avoidance Directive would have saved the NHS, bring an end the ongoing harsh austerity measures and food banks, then surely a majority of British voters would have voted to remain.

But, then again the British voters were not supposed to know EU Anti Tax Avoidance Directive, which is why Cameron, British MPs, the right-wing press and even the BBC, which is getting paid by the British public to inform the British public, declined to speak publicly about its implications in the UK. 

But then again, David Cameron was fond of wealthy tax-dodging individuals, which is why in 2013, he wrote to the then president of the European Council, Herman Van Rompuy requesting from him not to drag British offshore trusts into an EU-wide crackdown on tax avoidance.

https://www.theguardian.com/politics/2016/apr/07/david-cameron-offshore-trusts-eu-tax-crackdown-2013

After all, David Cameron inherited his a house in North Kensington, worth £2.000.000 at the time and £300,000 from his father, Ian Cameron a long term tax-dodger, who expanded his wealth by running an offshore fund in Bahamas.

https://www.theguardian.com/politics/2016/apr/06/the-cameron-network-inherited-wealth-and-family-companies

4. WHO SUPPORTED LEAVE CAMPAIGN?

Tax-dodgers are greedy individuals who couldn’t care less if the British people are being subjected to harsh austerity measures, living on discriminatory food banks or losing their NHS, yet ahead of the EU referendum, they became extremely patriotic and generous by donating vast amounts of money to the Leave camp.

According to The Business Insider UK, the long list of prominent individuals who donated generous amounts to the Leave campaign, and have been implicated in tax-avoiding practices, include:
• Lord Farmer who donated £300,000;
• Peter Cruddas who donated £350,000;
• Lord Bamford who donated £673,000;
• Crispin Odey who donated £873,288;
• Lord Edmiston who donated £1,000,000;
• Peter Hargreaves who donated £3,200,000;
• Arron Banks who donated £8,106, 375.

https://www.businessinsider.com/twenty-one-biggest-donors-to-the-leave-brexit-campaign-2017-5/?r=UK#1-arron-banks-8106-375-21

5. WHERE DID THE EU REFERENDUM TAKE PLACE?

The EU referendum took place in the UK, a country that is proud of being the world’s fifth largest economy, but at the same time it subjects its nation to austerity measures and food banks, because similar to Greece, the UK authorities are unable to collect due taxes.

According to The Guardian, in the year 2015, Inland Revenue failed to collect an estimated £16,000,000,000 in taxes, whereby £12,000,000,000 are lost in tax evasion or avoidance.

https://www.theguardian.com/politics/2015/dec/17/uk-tax-costs-government-16bn-each-year-audit-report-says

Of course, tax-avoiding practices are legal in the UK, but if we were to remain in the EU or in the single market and the customs union, the UK would have to implement new EU laws, such as the EU Anti Tax Avoidance Directive, which would force the companies to pay the exit charge whenever they removed their capital gains from the EU member state to another low tax jurisdiction, such as a British tax haven.

New EU laws would force a UK registered company, such as Rupert Murdoch’s Sun newspaper to pay an exit charge, every time its capital gains are relocated to another tax jurisdiction outside the EU, such as Cayman Islands, Bermuda and the British Virgin Islands, because the British overseas territories are part of the UK, but not part of the EU!

This was also confirmed by the most prominent Brexiteer, Nigel Farage who accused the EU Commission of attempting to “drive a wedge between the United Kingdom and the Channel Islands, the Isle of Man and the Caymans”, adding:

“There’s a great degree of unity here this morning, a common enemy: rich people, successful companies evading tax, which of course is a problem, avoiding tax, which is not illegal, but it gives this whole chamber this morning a high moral tone and, as Mr Barrasso says, it’s all about the perception of fairness.” 

https://www.newstatesman.com/politics/2013/06/watch-nigel-farage-denounces-tax-avoidance-speech-last-month

6. HOW THE BRITISH ELITE MANAGED TO GET THEIR DESIRED OUTCOME AT THE EU REFERENDUM?

It seems that the British elite is fond of George Orwell’s “1984”, so they turned it into reality, whereby the invisible decision makers, “The Party” turned our democracies into “Oceania” and MSM into “The Thought Police”, whose role is to inflict fear upon the British people.

Every time tax-free assets of the wealthy elite are threatened by the EU or British politicians, “The Thought Police” also known as the right-wing media, infects the British people with the fear virus about an imaginary threat from that comes from subjects or individuals that are keen to deliver equality and social cohesion in the UK.

Prominent pro-Brexit newspapers are owned by individuals who avoid paying tax to UK tax authorities, such as:

The owner of the Sun newspaper, Rupert Murdoch avoided paying his taxes by setting up his companies in the British Virgin Islands, and the Cayman Islands tax havens.

http://news.bbc.co.uk/2/hi/business/299543.stm

The owners of the Telegraph newspaper, David and Frederick Barclay avoided paying their taxes by registering as residents of Sark island, located in the Channel Island tax haven.

https://www.channel4.com/news/factcheck/factcheck-update-another-tax-haven-loophole

The owner of the Daily Mail newspaper, Lord Rothermere avoided paying his taxes by inheriting the Daily Mail through an offshore trust set up in the Channel Island tax haven and is registered as “non-dom”.

https://www.theguardian.com/business/2014/jul/10/whos-who-britain-legal-offshore-tax-avoidance-james-dyson

The owner of the Express newspaper, Richard Desmond avoided paying his taxes by setting up a company in a Luxembourg tax haven.
http://www.bbc.co.uk/mediacentre/latestnews/2012/panorama-truth-about-tax.html

In 1997, John Major was keen to collect land taxes from wealthy noble landlords and the right-wing press rather the Conservatives, their traditional party of choice, they endorsed the Labour party.

Twenty years later, Jeremy Corbyn promised to bring an end to tax-dodging practices from the wealthy elite, and despite the increase in the Labour membership, the right-wing press drove the British public to vote for prolonged tax-dodging, austerity measures and food banks.

Tax-dodgers are greedy crooks who will eventually receive long imprisonment for robbing their nation, but in the UK, most of them are rewarded with noble titles, a Lord, a Sir, etc.

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