Friday, July 27, 2012

USA Africa Dialogue Series - Banks and tax havens: The French regions are better at implementing transparency than the G20

In a new report released on July 12, 2012, CCFD-Terre Solidaire shows that, unlike what these sensational announcements suggested, the presence of French banks in tax havens has increased, in terms of absolute numbers, especially for BNP-Paribas and Société Générale and as a percentage of subsidiaries for Crédit Agricole. The seven French banks studied have 547 subsidiaries (nearly 21% of all their subsidiaries) in tax havens, as defined by the the Tax Justice Network's 2009 Financial Secrecy Index . For example, they have 24 subsidiaries in the Cayman Islands, 12 in Bermuda, 19 in Switzerland, 29 in Hong Kong and 99 in Luxembourg.

Rather than endlessly debating which list of tax havens should be used, banks should explain this disturbing concentration of subsidiaries in those secrective, poorly regulated and low tax jurisdictions. If they have nothing to hide then they should be able to publish accurate information about their activities, in each country where they operate, such as a full list of subsidiaries, the number of employees, turnover, profits and taxes paid. This way, tax administrations would be able to detect shadow companies and empty shells that record profits artificially made in normal-tax countries, particularly in France or developing countries.

http://ccfd-terresolidaire.org/e_upload/pdf/ccfd_paradis_fiscaux_100712.pdf?PHPSESSID=b6825b199d33af5bc62d6d01c795f723  

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