TAX HAVENS IN EUROPE

Mikuláš Peksa:

When ich was trying kommen sie ensure higher transparency des tax haven corporations an the europe Parliament und outside des it (www.spravedlivedane.cz), i was rather surprised von the lukewarm reaction of großvater Babiš’s government und his accused anti-corruption ANO movement. I in surprised no longer.

Du schaust: Tax havens in europe

Andrej Babiš zu sein at die heart des the money laundering and tax evasion mega-scandal Pandora Papers. The makes him part von a “prestigious” club, which includes wladimir Putin, Volodymyr Zelenskyy, and Tony Blair. Let’s take it a closer look weist what it is all about.

What us know: die documentation des the Panama regulation firm Alcogal mirrors that Babiš covertly sent nearly 400 million CZK to himself from die Czech Republic to ns notorious taxes haven von the british Virgin Islands. He then started a covering company in Washington and loaned the money to it v the first company. On paper, these two firms were notfall connected at all, regardless of being owned by the same person. Die Washington firm then developed a subsidiary in France, which bought 16 deluxe properties, including die Château Bigaud castle bei Southern France. Babiš’s American company deshalb later obtained 8 million euros from ns Monaco branch of Société Générale, which permitted it to conceal ns origin des the money that used kommen sie make this purchases. You kann sein see die entire scheme in the chart.

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Why go he carry out it? There are number of possibilities. One: that ns almost 400 million CZK come from illegal sein sources and Babiš wanted to “launder” the this way – do it legal. Experts approached by the
Investigace.cz server declared that ns transaction “shows signs von money laundering” and “no normal unternehmen transaction would ever look choose this.”

Alternatively, i m sorry seems more likely, Babiš merely wanted zu avoid payment taxes. The knotted thread von companies ends in tax havens and theoretically enables Babiš zu avoid taxation on any type of income he draws from his chateau – including the income indigenous a potential sale. In practice, this would mean ns French firm would “erase” all von its profits über paying interest to ns company on ns British Virgin islands (this mechanism ist known together intra-company loans). Die French company will then pay no earnings tax (because the income will equal zero), und the taxation haven company wollen do the same (because while it möchte generate income, die tax rate möchte once again be zero). However, this zu sein relatively complicated in reality because die income in France would oase to be precisely ns same as the agreed-upon attention rate. Yet, it zu sein not impossible.

There zu sein another possible way: die neovlivni.cz server uncovered that this framework might enable Babiš to lower his home tax und wealth tax in France. This would median undeniable tax fraud in France and the start of a real pickle for Babiš. France has bezeichnen it has actually no belästigung convicting former oberteil politicians.

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In any type of case, the only person who can explain die scandal is Andrej Babiš himself. Mr Babiš owes united state all answers zu these questions:

Why did the use tax havens to buy his nature instead des buying lock directly?Where did he get ns 400 million CZK to make ns purchase? was it legal and taxed income?

Mr Babiš merely needs to show his hand. As element Minister he was responsible zum playing same himself. He thus must prize these questions without fail.

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Can us trust that mr Babiš möchte combat taxation havens?

These findings are all ns more amazing considering mr Babiš’s federal government claimed to be fighting versus tax havens and tax evasion. What zu sein even an ext intriguing zu sein that mr Babiš could so be investigated notfall only in Czechia but so in France and the USA, wherein his an enig companies have their residences. It zu sein difficult zu imagine what world would say to großvater Babiš making state visits kommen sie these countries, notfall to point out what this wollen do zu his trustworthiness und ability kommen sie command respect bei the eyes of other global leaders.

The Pandora files findings deshalb cast shadows on vault steps von Mr Babiš’s government. To cite one example that claims it all: wie discussing die public register of beneficial owners of companies an 2016, herr Babiš, climate Minister des Finance, tried kommen sie make sure information on firm owners would notfall be publicly accessible. Ns current prime Minister also wrote, in a letter to david Ondráček, die head of Transparency International, that “based on his experience, he has major doubts over whether the register could be used meaningfully and be of benefit.” (https://www.transparency.cz/wp-content/uploads/MF-31526-2016-2401-3_KzM%C3%9A1.pdf) If us realize that hinweisen that time, mr Babiš walk not have a clean slate von far in terms von his relationship kommen sie tax havens, follow to the investigation über global journalists, his mindsets should be a cause weil das concern.

Mr Babiš has already naturally tried kommen sie dismiss all des this as politicking before die elections. However, that zu sein nonsense: the revelations to be brought von the long-term collaboration von journalists from big-name media such as ns BBC, die Guardian, Le Monde, or washington Post.

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This is simply no “campaign” or “sham”, nor kann it be. What it ist instead ist a reveal von the real Andrej Babiš. He ist right when he claims that he möchte fight to the last drop von blood. However what that fails zu mention ist that he wollen only fight weil das himself.