Paradise Papers
Friday 10 November 2017
FAISAL Sheikh, international finance and economics expert at the University of Salford Business School, comments on the Paradise Papers.
Faisal said: “This latest leak will not deter tax evasion, money laundering and concealment of illegal monies. The only solution to the global phenomenon of tax evasion is an open dialogue between multinational companies such as Apple and Facebook and multilateral agencies such as the OECD and WTO and national governments, so that business and personal tax structures are progressive and fair. Global law agencies such as Interpol need to coordinate and communicate better with their national counterparts such as the FBI, and clamp down on organised financial crime.
“Personally I believe we now live in a global street that is driven by social media that empowers consumers with up-to date financial and non-financial information and access to industry gurus through platforms such as YouTube. Consumers in general are no longer willing to put up with companies that participate in any unethical business practices let alone questionable tax avoidance and can and do use their wallets to show their dissatisfaction. An example is the 2014 case of Starbucks whose revenues fell by 3.4 % after boycotts and criticism of the use of offshore tax havens. In short, companies should never underestimate the power of consumer choice and fallout from such scandals.
“Payment of less tax is the primary reason behind most offshore activity. Thus through the use of offshore centres, investors are able to execute investment activities in a far more lucrative manner and usually in a less regulated environment. The line between tax avoidance and tax evasion is very fine and ultimately it is down to the individual conscience of those involved.”
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Sam Wood
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