Friday, March 30, 2012
Anything But Petty: Small-Scale Corruption And The Need For A Cultural Shift
Audio: Taxcast By TJN, March Edition
EU Transparency Proposal Threatened By Imaginary Laws
Corruption In Eastern Europe, Communism, And The European Union
We’ve Been Nominated As A “Leading Force” On Transfer Pricing By TPWeek
Audio: Africa’s Odious Debts: How Foreign Loans And Capital Flight Bled A Continent
Clips
Bribery
An FCPA Debate For The Ages
The Wall Street Journal (blog), March 28, 2012
By C.M. Matthews
One of the architects of modern Foreign Corrupt Practices Act enforcement squared off Wednesday against two of the most outspoken proponents of changing the FCPA.
For FCPA geeks, this was Ali vs. Foreman and Frazier. A battle royale. A bloodbath.
UK Finds Anti-Bribery Shortfalls At Investment Banks
The Wall Street Journal (blog), March 29, 2012
By Samuel Rubenfeld
The U.K.’s financial-services regulator said investment banks aren’t implementing anti-bribery and corruption reforms that came into effect with the U.K. Bribery Act.
The Financial Services Authority, or FSA, found that most investment banks hadn’t “taken account” of rules governing bribery or corruption before or after the Bribery Act, which went into effect July 1, 2011. The agency said it’s considering regulatory action relating to certain firms in its review.
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Corruption
Transparency versus corruption
The Times of Malta, March 30, 2012
By Edward Scicluna
It is one of the terrible ironies that some of the world’s poorest countries are the most resource rich. Some even talk of the “resource curse”. Africa, in particular, has many resource-rich countries that have stayed poor because of the collaboration between extractive companies and corrupt government officials. The Democratic Republic of the Congo is one example but there are many more, especially in Africa.
It is very easy to blame corrupt authoritarian regimes in these countries but we need to remind ourselves that the ownership of many of these companies is often European or North American.
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Tax Avoidance and Tax Evasion
Germany: Swiss tax evasion deal still stalled
The Associated Press, March 30, 2012
Germany’s Finance Ministry says several of its state governments are continuing to block a tax accord with Switzerland aimed at ending a long-running dispute over German tax evaders.
The deal needs approval by the German Parliament’s upper house, which represents Germany’s 16 states and where Chancellor Angela Merkel’s center-right government lacks a majority.
The question of tax evasion
The Times of Malta, March 30, 2012
By Lawrence Zammit
Statistics show that over a 12-month period we pay around €1,230 million in direct tax and around €920 million in indirect taxes. This adds up to €2,150 million.
The total amount of tax revenue represents around one-third of the gross domestic product, that is the wealth produced in the country.
Beijing tax office upholds fine for Ai Weiwei
The Associated Press, March 29, 2012
By Alexa Olesen
Outspoken Chinese artist Ai Weiwei said Thursday that Beijing tax authorities have upheld a ruling that his company must pay a multimillion dollar fine for alleged tax evasion.
The internationally acclaimed conceptual artist said the notice follows a review of his case that he requested. He had hoped that the review would include a public hearing, but it did not.
Democrats seek disclosure of tax haven ties
Reuters, March 29, 2012
By Kim Dixon
Lawmakers and candidates would have to spell out any financial ties they might have to countries considered to be tax havens under a bill introduced by two Democrats in the Senate on Thursday.
The measure, seen by some on Capitol Hill as a jab at Republican presidential candidate Mitt Romney, has little chance of getting through a sharply divided Congress ahead of the November 6 general election.
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Corruption
Russia’s Commitment To Fighting Corruption Questioned
The Wall Street Journal (blog), March 29, 2012
By C.M. Matthews
When Russian President Dmitry Medvedev signed a ban on bribing foreign officials into law February, many remained skeptical about the country’s commitment to anti-corruption enforcement.
Some viewed the move as nothing more than a ploy to gain entrance to the world’s elite economic club, the Organization for Economic Cooperation and Development, which requires member nations to sign its anti-bribery convention.
World Bank Updates Anti-Corruption Implantation Plan
The Wall Street Journal (blog), March 29, 2012
By Samuel Rubenfeld
The World Bank said this week its executive board has endorsed the institution’s updated governance and anti-corruption strategy.
The updated plan expands upon the 2007 strategy and reflects economic changes that have gripped the globe over the past five years, including the financial crisis, protests calling for greater governmental transparency and increased power and prominence for women.
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Money Laundering
Vatican Leaks Raise Questions Over Finances
NPR, March 29, 2012
By Sylvia Poggioli
The Vatican has launched a rare criminal investigation to uncover who is behind leaks of highly sensitive documents that allege corruption and financial mismanagement in Vatican City.
The documents also shed light on purported infighting over the Vatican Bank’s compliance with international money-laundering regulations.