“Secret economical systems”: are the cause of the economical crisis…

the solution to this problem is “transparency”.

Immunity cannot be granted anymore to Active Templars, Pirates,

Clergy-business men, and Masonic financial corporations

that do not follow constitutional, harmonic and democratic rules,

and prevaricate laws and governments, National sovereignty and exploit economy

through the creation of money from nothing, debt creation and fiscal elusion.

It is time to change this particular attitude, and re- introduce the concepts of dignity, respect and morality.

ENDING THE OFFSHORE SECRECY SYSTEM

An Action Program to Strengthen International Financial and Fiscal Regulatory Cooperation  - March 2009

It is now widely understood that any serious efforts to improve international cooperation

and coordination of supervision of the international financial system must include a

determined crackdown on the use of `offshore’ entities. This should include action to end

the ways in which major international financial centres also collaborate in the offshore

system, which indeed they themselves originally devised and have helped to maintain.

Offshore entities are extensively used to maintain secrecy which undermines the

effectiveness of regulation in the public interest. The strict secrecy provided by tax havens

and the offshore system enables in particular abusive avoidance and evasion of both

taxation and financial regulation. They have contributed to the current financial crisis in

two main ways. First, the opportunities for tax minimization have greatly increased the

volume of funds available for financial speculation, and distorted the international

allocation of capital by reducing the cost of capital for financial operations, e.g. by hedge

funds, as opposed to real investment. Secondly, the secrecy they provide has contributed to

the opacity which has destroyed confidence in the assets and balance sheets of

multinational banks and financial institutions, inflicting great damage on the world

economy.

International tax avoidance and evasion create a major obstacle for developing countries

seeking to generate domestic finance for development, and hence reduce their dependence

on aid. It is now time to end the use of artificial legal persons formed in jurisdictions of

convenience which distorts and sullies legitimate business activities.

To that end, TJN proposes the following Action Program.

-

IMPROVING COORDINATION BETWEEN FISCAL AND FINANCIAL REGULATORS

The Compendium of Standards and Codes compiled by the Financial Stability Forum (FSF)

should include appropriate standards for International Cooperation in Tax Matters ( see

below). The FSF itself should be reformed both to include a wider range of countries,

especially developing countries, and to provide opportunities for input by civil society

organizations.

The Reports on the Observance of Standards and Codes (ROSCs) of international financial

centers conducted through the International Monetary Fund (IMF) and World Bank should

be made more transparent and provide an opportunity for input by civil society

organizations (following fundamental governance ( I’d rather say,” just rules” ) reform of the IMF
and World Bank to enhance transparency and accountability).  It should include assessments
of each jurisdiction’s compliance with international tax cooperation standards, conducted by expert
 reviewers appointed by the UN Tax Committee. No financial centre should be judged compliant unless
it has established adequate and transparent mechanisms for comprehensive cooperation in tax matters.
Counter-measures for non-compliance with tax co-operation standards are dealt with separately.

Each jurisdiction should establish adequate arrangements for cooperation between tax

authorities and regulators responsible for financial supervision, including bodies

responsible for fighting money-laundering, corruption and other criminal activities.

There should be adequate arrangements within each country, and internationally, subject to

proper safeguards, for exchange of information between fiscal and financial regulatory

authorities. This should include access by tax authorities to transaction reports related to

money-laundering.

INTERNATIONAL COOPERATION IN TAX MATTERS

An international standard for cooperation in taxation should be established, providing for

comprehensive exchange of information for assessment and collection of taxes, including

automatic, on request and spontaneous exchanges of information. This should be based on

existing instruments, such as the Council of Europe/OECD Convention of 1988 on Mutual

Cooperation in Tax Matters, and the EU Savings Directive. The Council of Europe/OECD

multilateral Convention should be made open for signature by all states. Council of Europe

and OECD member states should accede to it, making no significant reservations, and those

which have such reservations should withdraw them. Its provisions on automatic exchange

of information should be made operational by all participating states. They should also

extend its provisions to all their dependent territories.

The European Union should enact the revised version of its EU Savings Directive proposed

in November 2008 whilst withdrawing the option for tax to be withheld at source on

income paid to non-resident taxpayers in some participating jurisdictions, so that

automatic information exchange occurs in all circumstances whilst extending the range of

payments covered by the Directive to include dividends and capital gains. The European

Union should engage in negotiation with non-member states to extend the geographic

scope of the EU Savings Tax Directive to additional jurisdictions, with a particular emphasis

upon extension to the USA and the principal current non-participating tax havens of Dubai,

Singapore, Hong Kong and Panama, and to developing countries which may have suffered

from capital flight.

The OECD Centre for Tax Policy and Administration should accelerate its long-standing

work on technical standards for automatic exchange of tax information in electronic form,

in conjunction with other appropriate bodies such as the European Commission, the IMF

Fiscal Affairs Department and the World Bank. These standards should be internationally

agreed and implemented as soon as possible.

The international standard should include rules for obtaining information from both

individual nationals and residents, and legal persons formed under the laws of, or resident

in, each country. It should include in particular a requirement that all banks and other

financial, legal and corporate service providers collect information, which should be

available for regulatory purposes to the appropriate supervisors or regulators (including

tax authorities), on the beneficial owners of all payments made, whether to residents or

non-residents, individuals and legal persons. It should prohibit legal provisions specifically

designed for non-residents, such as legal entities formed to conduct activities exclusively

outside the jurisdiction. Compliance should mean actually establishing satisfactory

arrangements for exchanging information with other states multilaterally, and not just

making non-binding `commitments’ or bilateral deals.

Progress towards compliance with this standard should be monitored by an appropriate

panel of experts, with input from civil society, according to a timetable with a relatively

short transition period. Those states which have achieved a satisfactory level of

compliance with this standard should then take appropriate defensive measures within

their laws to deny recognition to transactions involving entities in non-compliant

jurisdictions. This could include, for example, subjecting taxpayers with links to such

jurisdictions to special scrutiny, treating entities formed in such jurisdictions as abuses of

law, refusing deductibility of interest or other payments to entities taking advantage of

secrecy in such jurisdictions, and prohibiting banks from having branches or affiliates in

such jurisdictions. Such measures should as far as possible be coordinated.

The UN Committee of Tax Experts should be mandated as a high priority to work on a

Unitary approach for taxation of transnational corporations. This should be done in

conjunction with the work of the EU on development of a Common Consolidated Corporate

Tax Base, and taking account of the experience of the Multistate Tax Commission in the USA

with unitary taxation and formula apportionment, and it should draw on the support of the

OECD Committee on Fiscal Affairs.

IMPROVED CORPORATE FINANCIAL TRANSPARENCY

The International Accounting Standards Board (IASB) should include within its

International Financial Reporting Standard on segment reporting a requirement that

multinational corporate groups report on a country by country basis on all their

transactions (both third-party and intra group),  labour costs and number of employees,

finance costs (third-party and intra group), profits before tax, provisions for tax and tax

actually paid, and tangible and intangible asset investments, without exception for any

jurisdiction. This would provide a comprehensive view of each group for investors,

stakeholders and tax authorities, with the objective of reducing the cost of capital, ensuring

the efficient allocation of resources, eliminating transfer mispricing abuse, and facilitating a

more effective and transparent international allocation of the tax base.

The constitution of the IASB should be reformed so that this organization ceases to be a

privately owned company with its finances controlled by the large firms of accountants and

the financial services community and instead becomes an international agency as a

specialist Commission of the United Nations Economic and Social Council, with appropriate

provision for input by business and civil society organizations. The IASB project for a

revised conceptual framework should be comprehensively reconsidered to reflect the

lessons of the current crisis, which show that the IASB’s approach has been one-sided in

the priority it has given to the information needs of mobile financial investors. Hence, IASB

standards should also evaluate the going concern in terms of its socially embedded use of a

society's economic resources and thus contribute to a more socially fair and sustainable

economy.

Those national and international bodies producing reporting standards for Corporate

Social Responsibility should recognize that payment of the proper level of tax due is the

ultimate corporate social responsibility of any company, and should include an obligation

to disclose financial and taxation data on a country-by-country basis in the form noted

above, which could be based on the IASB standard- if and when an adequate standard is

produced.

Professional bodies regulating the activities of financial intermediaries should create Codes

of Conduct that their members should be required to comply with as a condition of their

membership that promote transparency and responsibility in relation to regulatory and tax

compliance. Such Codes should specifically prohibit the promotion of financial obfuscation

and abusive tax avoidance. These could be based on the Code of Conduct which is being

prepared by the UN Tax Committee. For these purposes: (i) tax compliance means that the

correct amount of tax is paid in the correct place at the correct time, on the basis that the

economic substance of transactions is properly reflected by the form in which it is reported

for taxation purposes; and (ii) abusive tax avoidance means that a transaction is

constructed for the main or sole purpose of securing a tax advantage which it was not

intended that the law provide.

So, this is apparently the way G20 is going to face this crisis.

Let’s see who runs the off shore heavens:

Andorra
The Bahamas
Cyprus
Liechtenstein
Luxembourg
Mauritius
Monaco
Panama
San Marino
Seychelles
Switzerland

Non-sovereign jurisdictions commonly labelled as tax havens include:

Bermuda (United Kingdom)
British Virgin Islands (United Kingdom)
Campione d'Italia an Italian exclave (Italy)
Cayman Islands (United Kingdom)
The Channel Islands of Jersey and Guernsey (United Kingdom)
Delaware (United States)
The Isle of Man (United Kingdom)
Jebel Ali Free Zone in the United Arab Emirates
Labuan, a Malaysian island off Borneo
Netherlands Antilles (Netherlands)
Nevada (United States)
Turks and Caicos Islands (United Kingdom)
United States Virgin Islands (United States)
Wyoming (United States)
and finally
The Vatican ( Italy ) and The City ( England )

Which are so secretive and powerful that ”no comment answers” are what they have been giving since 1300. The Vatican is not even in the “white list” of countries that wish to cooperate with others to solve the problem, whilst  “The city”, a corporation entity that runs business everywhere in the globe, relies upon unfair taxation, trade and affairs, granted by immunity, non- control and secrecy.

This kind of general attitude, ultimately generated the causes of the present crisis.
Karma is going to heal this situation.  It is time for transparency.
It is time to give back the money and to balance things.
It is time to cancel debts. The  “Jubilee Year”  is the solution to this problem.  

By separating “black magic financial algorithms from fair trade and affairs, exploitation and enslavement of nations,  will end.  The present level of goods that are produced in the whole world is 1/12th of the total sum of the Debt of all nations.

Demons use illusions to run the world, and create crisis periods to force people and National sovereignties to lose power, do what they want, and force them to sell, loose and renounce to all the wealth they have reached. Nations that do not accept these plans, will be fought, and a non-existent enemies will be created to weaken them up, ‘till they will ask for help, and submit.

War, used to force nations, is a mere instrument of economical control, and the ones that are going to attack a country they want to conquer, will certainly convince public opinion that they are doing this to fix things up, and they are doing what they are doing for the benefit of the community. Explanation, legitimation and convincement, are psychological  steps Demons will work on, every time they want to prevaricate. Would you expect a Demon to appear to you as he is? Or is it reasonable that He will try to disguise Himself in front of your eyes?   

 It is time to give them back all the debt they are asking for and have created, in a peaceful way, following natural harmonic principles, and balanced actions. It is time stand still in front of the storm. Strong like mountains, brave like lions. Do not serve Demons and Hell will abandon Earth. It is as easy as this. Practice peace and truth, and share, because private property comes from egoistic thinking.   

By Amonakur