Tag Archives: money laundering

Caption: The offices of Appleby, an offshore law firm, in Hamilton, Bermuda. The company is at the center of leaked documents being called the Paradise Papers. Credit: Meredith Andrews for The New York Times

Tax havens of the elite exposed by Paradise Papers

A principal way the ultra-rich and corporations pay less taxes is by shifting where they declare income to places like Caribbean islands with a very low or non-existent tax rate.  The New York Times has run an excellent series of articles describing how Wilber Ross, the Commerce Secretary, Apple and others have benefited, summarized in the following article.

Paradise Papers shine light on where the elite keep their money Michael Forsythe New York Times November 5, 2017

Tax havens are also used to cover up bribery, stealing government assets and other illegal transactions.

Paradise Papers reveal how tax havens damage Africa  Kate Hairsine DW November 11, 2017

The Paradise Papers hacking and the consequences of privacy Jake Bernstein New York Times November 7, 2017

…a lawyer at Mossack Fonseca candidly wrote in a confidential internal memorandum, “95 percent of our work” is “selling vehicles to avoid paying taxes.” The amounts involved are staggering. An estimated 8 percent of household financial wealth is held offshore, representing a loss in annual global tax revenue of about $190 billion. But this pales in comparison to the tax avoidance and tax evasion by the large multinational companies that use this system. All told, more than $7.6 trillion may well be hidden in tax havens around the world, according to Gabriel Zucman, an economist at the University of California, Berkeley, who studies the issue. Read full story.

Also see  Understanding harmful economic systems., especially the section on obtaining income.

Caption: The offices of Appleby, an offshore law firm, in Hamilton, Bermuda. The company is at the center of leaked documents being called the Paradise Papers. Credit: Meredith Andrews for The New York Times

Paul Manafort’s Guide to Laundering Income and Sereptious Spending

Very interesting revelations as the result of a federal indictment on how Paul Manafort hid income he had earned from the U.S. government, yet spent money lavishly in the United States,  Also noteworthy was how he earned the money in the first place.

Manafort is the tip of the iceberg Richard Gordon New York Times October 31, 2017.

How a federal inquiry says Paul Manafort laundered $18 million 

The indictment.

Also valuable were articles describing Manafort assistance to  deposed Ukrainian president  Viktor F. Yanukovych, who was closely allied with the Russian government,

Charges against Paul Manafort resonate in Ukraine  Andrew E. KrameNew York Times October 31, 2017

With Manafort, it really is about Russia, not Ukraine Evelyn N. Farkas New York Times November 5, 2017

Also see  Understanding harmful economic systems., especially the section on obtaining income.

Portugal dominated Angola for centuries. Now the roles are reversed.

Norimitsu Onishi New York Times August 22, 2017

LISBON — How the roles have reversed: The colonizer, some Portuguese contend, has been colonized. On the Portuguese coast of Cascais, where the nation’s royal court used to summer, a new 14-story condominium building looms confidently by the sea. So many of its apartments have been bought by Angola’s ruling class — sometimes a handful at a time — that the development has a nickname: the “Angolans’ building.” Along the grandest shopping boulevard in the capital, Lisbon, Angola’s elite buy designer suits and handbags by the armful. And on one corner, above Louis Vuitton, sits the local office of Africa’s richest woman, Isabel dos Santos, a billionaire from Angola who has become one of Portugal’s most powerful figures by buying large chunks of the country’s banking, media and energy industries.  See full story.

Photo caption: Retiring Angola President José Eduardo dos Santos (on the right) has ruled Angola for close to four decades and will remain head of the ruling MPLA party. Dos Santos’s billionaire daughter Isabel heads Sonangol, the state oil company, and his son José Filomeno runs the country’s $5 billion sovereign wealth fund.