Tuesday, 30 April 2013

DUMMY OFFSHORE COMPANIES - ONLY $79.99

I AM ACTUALLY NOT A DUMMY
YOU LOT ARE THE DUMMIES.
I have been asked to clarify TAX-EVASION-CAPITAL-FLIGHT. Is the recently estimated $32 trillion in tax-havens (about 80 million jobs) all tax that should have been paid?  

No! How it works is that if, for example, a business trading in the USA, employing 5,000 people and serving 2 million customers, makes in a year, say $25 million profit - the corporation tax bill (tax on profits) will be about 20% or $5 million.

BUT - for the bookkeepers to fiddle the accounts sufficiently to kill off the $5 million tax bill - they have to send themselves dummy invoices for the whole profit - $25 million. So, they register a pretend company in  a tax-haven - say Cayman, or Delaware; there are 75 to choose from. The company has no costs, no employees, no commercial activity and its ownership is hidden - and its directors are dummy directors, pretend executives. 


To be legal and therefore to get tax relief, this dummy company must in American Law be a real trading entity, on normal commercial terms, be at arms length from the profitable company (so not controlled by the same people - but independently managed) and NOT to be formed to reduce US taxes. These conditions make the bookkeepers' work difficult.

After much head scratching, the bookkeepers in the USA make up some invoices, appearing to come from the tax-haven company, that they hope the IRS will nod through - and grant US tax relief on. The false invoices are for the whole US profit of $25 million. That's the simple story - but because of the anti-evasion rules, it ain't that simple - so the bookkeepers end up in an ENRON accounting maze - with dozens of companies - onshore and offshore - all dummies - all sending each other false invoices. The net result is that the $25 million profit is absorbed in the chaos.

The Accounts and Balance Sheets are prepared by the bookkeepers, approved by the auditors and lawyers and directors, for very large fees, as being True and Fair Views of the dozens of companies - and the bewildered bullied blackmailed or bribed IRS then also approve all the transactions - and agree a NIL profit and NIL tax in the USA. The professional advisers then dress the false transactions in legal and accountancy gobbledygook and miles of small print - to baffle everyone.

To complete the transactions' debit and credit bookkeeping (there still is some logic to bent accounting), the main profitable company, with the complicit help of their banks, pays the dummy invoices - to the dummy tax-haven  companies, into their offshore bank accounts. The whole $25 million is paid. The CAPITAL leaves America. This is the Tax-Evasion-Capital-Flight, which leaves the US and is no longer available for investing in the nation - which provided all the revenues and all the police, armed forces, hospitals, roads, bridges and business infrastructure, and all the real employees. So US banks are depleted. The only way to bring the capital back is to borrow it - from the FREE MARKETS. Then US citizens are told they are lazy, living in debt, must work harder for less and that their pensions have been lost - "Due to the economic downturn". Have you ever been more suckered?

It is all just make believe - to enable 0.5% of the population to steal all the assets of the 99.5%. But, We The People, in all OECD countries where large companies trade - are required to pretend that we believe all the millions of dummy transactions - to siphon off trillions of dollars from our High Streets - are real. YES - We do all believe in Fairies!

TAX AND ECONOMICS ARTICLES 29TH APR 13

Monday, 29 April 2013

TAX AND ECONOMICS 29TH APR to 31 DEC 13

I'VE GOT A LITTLE LIST.
TAX ARTICLES ARCHIVE

BENT BOOKKEEPERS BEWARE

WE ARE NOT ALONE






  • TAX TALES & "WE DO BELIEVE IN FAIRIES"


    COME HOME – ALL IS FORGIVEN

    INDIA SAYS - GO HOME CAMERON!


    TAX EVASION - THE LAWS




    Solve the world’s financial woes:
    FIX THE MONEY-ECONOMY

    ARCHIVE OF TAX AND ECONOMIC FIXES - NOV 2011 TO DATE:

    REFORM MONEY


    THE TAXMAN COMETH - NO MORE MR NICE GUY


    END OF LOAN SHARKS?


    MARK CARNEY - MONEY-WARS


    OBAMA POWER EXPLAINED – 7TH NOV 2012.


    THE LIVING WAGE – KILLING THE ECONOMY


    THE LIVING WAGE AND GUY FAWKES


    HAVE FAITH IN THE HIGGS BOSON


    OFFSHORE MILLIONAIRES FIGHT BACK

    BIRTHRIGHT - FOR OUR CHILDREN


    STARBUCKS’ TAX: JAMES BOND 007 - LICENSED TO COLLECT.


    TAX FREEBIE FOR THE BBC

    $102 BILLION FOR GREECE

    TAX - MINIMIZE, AVOID, EVADE, GOAL.

    SELF-EMPLOYED AT THE BBC?

     

    $21 TRILLION - "NOT A CONSPIRACY"


    RICH MAN PAYS TAX - SHOCK

    GUARANTEED TAXHAVENS

    DR CABLE'S BAD MEDICINE FOR SMEs

    THE TAXMAN COMETH – AVOIDING PRISON


    TAX-FREE LORDS - MOVE YOUR MONEY ON-SHORE

    $1 TRILLION STIMULUS – SEND IN THE MARINES!

    NO TAX FOR NON-DOMS

    HOW TO BE NON-TAXABLE

     

    GREEKS - PAY NO TAXES

    YES, WE ARE BEING CONNED.

    IS MITT ROMNEY ON OR OFF-SHORE?

    5% per annum cap on all interest rates & charges

    STOP LOAN SHARKS

    NO TAX OFFSHORE.

    WHO “LOST” $3 TRILLION?

    NEVER PAY TAX EVER AGAIN!

    CAPITAL IS ON VACATION

    TREASURE HUNT

     

    REDUCE THE COST OF MONEY

    WHO IS LAUGHING ALL THE WAY TO THE BANK?

    DIAMOND'S LAW

     

    APOCALYPSE - TAX FIDDLERS

    WILL THE THIN GREY SUITED LINE
    PREVAIL AGAINST THE FOUR HORSEMEN
    OF THE APOCALYPSE?
    Accountants, the world's bean-counters, and their work as auditors, tax-return filers and bookkeepers, entailing double-entry ledgers, addition, subtraction, and, for the cleverest, multiplication and long division, remain top of the Most-Boring Professions in the known universe. Our subject is not a catchy one. It is dangerously under-reported. 

     TAX PLANNERS PACK THE JURY  linked essay
    When dusty, humorless, grey suited, elderly clerks such as I bang-on about tax-havens and ENRON accounting threatening world peace - I might be regarded as a voice crying in the wilderness, whistling in the wind, or whispering from inside a locked stationery cupboard. BUT - fear not! I am not alone. In today's Guardian, other voices are raised in alarm. Like the geese of ancient Rome, we will soon be making such a kerfuffle that even the most committed political ostriches will lift their heads from the sands of oblivion - and leap into action. And we will be heralded as prophets in our own time and countries. 
    To relieve the boredom you are about to endure - here is the best accountancy joke. It was aimed at John Major, the (most boring ever) UK Prime Minister, inserted by Thatcher as she resigned, of whom it was accurately said "John Major is the only man ever to run away from the Circus to become a Chartered Accountant".  He was indeed raised in a circus family.  ...We accountants, unacknowledged heroes all, permitted ourselves a wry smile. 
    However, these correspondents (below) need to shout louder and more angrily about their fifth-columnist colleagues who fiddle the books, infiltrate governments and threaten global meltdown. The pits of hell are opening. All that stands between civilization and total chaos is an army of honest bookkeepers. 

    GUARDIAN LETTERS - Public accounts committee chair Margaret Hodge. The committee claims accountancy firms are using knowledge gained from staff seconded to the Treasury to help wealthy clients avoid paying UK taxes. 






    Friday, 26 April 2013

    TAX PLANNERS PACK THE JURY

    Letter to the Guardian Newspaper, 26th April 2013  

    There are huge amounts of revenue and capital, enough to recapitalise Britain, at stake when tax-planners and government tax-officers swap roles through the revolving door (Inside knowledge lets rich off tax hook, says MPs’ report – Guardian 26 April 2013)

    UK Uncut and others have protested about the infamous Vodafone-John Connors-&-ex-Head of HMRC Dave Hartnett’s extraordinary deal. Incredibly, disgraced Hartnett is now a star tax-planner in the private sector. HMRC’s website lists its non-exec directors, who all hold or held senior corporate posts: Ian Barlow Head of KPMG, Colin Tobain CIO Tesco, Phillipa Hird ITV& Granada, Volker Becker NPower, Walter Pickavance Morrisons, John Whiting Tax partner Price Waterhouse. There are many more KPMG partners, Lawyers, Bankers and other City and Corporate figures, embedded in influential government tax and finance positions. While these individuals may be above criticism, statistically their companies are very likely to be involved in Tax-Avoidance schemes.

    New April 2013 rules, GARR*, re-define elaborate tax-avoidance as illegal and remind UK Courts of the existing international four conditions to curb overstated Transfer Pricing, Royalties, Interest, Dividends, Management Fees and all such ENRON accounting, which is required to gouge capital – with tax relief – from our High Streets to tax-havens. These long established laws insist that transactions must be (1) on Normal Commercial Terms (2) At Arms Length (3) Wholly Necessary for the business, and (4) Not Primarily for Tax Reduction.
    When these rules are retrospectively applied to the $3 trillion (7 million jobs) transferred from the UK since 1980 to tax-havens – the tax clients’ directors, executives, bookkeepers and their professional advisers will almost certainly have to bear huge costs and may be charged with false accounting and fraudulent conspiracy**. With an estimated global $32 trillion in tax-havens (Ex-McKinsey Partner 2013), such retrospective fraud cases are unavoidable; if not initiated by the shy and reticent UK, then by the EU and USA. To have any hint that the revolving-door planners and executors are also the interpreters, juries and judges of their firms’ and friends’ machinations is dangerous to the rule of law and to the World economy.  The present “austerity” policy is ridiculous. Instead the $32 trillion must be clawed back to the nations of origin and invested in our grandchildren’s futures.


    ** Tax fraud – 8 years jail for USA lawyers.  I SAY AVOIDANCE - YOU SAY EVASION

    (Mr) Noel Hodson, Oxford, UK

    Tuesday, 23 April 2013

    CREATURES OF LIGHT


    OOBLECK UNIVERSE

     “How is pure energy converted to matter?”

    Oobleck is corn starch mixed with water. It is a strange Non-Newtonian Fluid mixture that when hit with force, say by a hand or a foot slapping down on it, instantly hardens. It stiffens so rapidly that Oobleck is being investigated as a liquid armour – to stop bullets and bomb blasts. Scientists speculate that a fast runner could run across the surface of a pool of Oobleck water, as long as the downward slap of feet is fast enough to cause the stiffening reaction.

    “Ordinary” pure water is legendary for its almost unique counter-intuitive diverse forms – ice, liquid, structured water, steam and as super-cooled water climbing glass walls; manifesting strange properties, which most of us are familiar with – and thus take for granted. Water also becomes rigid (when cooled) and thick old ice is as capable of stopping bullets as is Oobleck.

    We are aware that most if not all materials exist in different states depending on temperature and pressure – from lava to quicksand to diamond to liquid nitrogen to black holes to clay and so on. 

    We are less aware that Light – the entire electro-magnetic spectrum - also may exist in different forms. Light has been slowed down and even stopped - or at least slowed a million fold - and re-started.

    There is a 2007 theory that Light could become a solid.

    But to date solid light remains a theory – if we exclude the photon /wave paradox. Are photons “solid” light? However, it is axiomatic and so self-evident that it is rarely stated, that light is the fundamental stuff of the universe. Everything is made of light and this can be clearly demonstrated in clean nuclear explosions, where uranium and other fissionable materials are completely released to return to their light form – with an E=MC2 flash and sound wave that destroys every structure within range. As the fundamental building block, light must logically (1) have some mass and (2) act as a Non-Newtonian fluid does in order to take forms such as the almost eternal proton. 

    Light is the ultimate ephemeral gaseous unbounded penetrable, permeable field – and - is the most rigid structured element in the universe. 

    Do the light waves form the infinite field? Are photons the particles of matter that can link to become impenetrable crystalline structures?

    Accepting “C” 300,000 KPS, as the limit of propagation of light – and the speed limit of all else in the universe; applying E=MC2 to a gram of matter which is attempting to reach and exceed “C” resolves to the answer that the gram of matter has acquired infinite mass and cannot be accelerated any faster than light-speed. 

    To the accelerating gram, the universe has become an impenetrable, immovable, infinitely heavy field which cannot permit anything to move through it. Is this “wall”, which is encountered at 300,000 KPS, the equivalent of the hand slap on the surface of a pool of Oobleck? Does “C” applied to the universal field of light convert the light, this most mysterious fluid, into one of its many characteristic forms and functions?

    I think we ought to accept for the next phase of scientific speculation that light is both waves and particles – we have no understanding of how or why but the wavicle theory has been rigorously tested and observed for 100 years and not yet disproved. So, it could be taken, at least for the next hundred years, as an axiom, a fundamental fact of nature. Regarding light as the basic stuff and fluid of the universe and allowing it to manifest as waves and as particles, it becomes a fluid ocean in which all things swim. We happily accept the five or six diverse forms of water or hydrogen or iron, how much more easily should we accept that light has different forms?  If so, light could be the Aether-Matrix, fluid enough to be an oceanic field which enables and permits all radio communications – which emit from and are absorbed by all phenomena – and rigid enough to record all broadcast data (from all phenomena at all times) and rigid enough to create the structure and permanence, the inertia of the world around us, which we all undeniably experience, from stars and galaxies to abandoned beer bottles.

    Taking light as the Aether-Matrix, we can speculate that an energetic event, the alleged Big-Bang for example, creates and propels a perfect sphere of light waves – which expands in accordance with Hubble observations. The massless, spherical wave races out towards the terrifying oblivion of the Dimensionless No-Thing “outside” of our universe – stretching and attenuating its own, probably sentient, energy field as it propagates. The edge of oblivion, of non-existence, and its “internal” partial vacuum of attenuation, causes the wave to pause or slow its headlong flight. This pause limits the rate of propagation to the now familiar 300,000 KPS. God, or Richard Dawkins, who has initiated the first wave, now sends or triggers a second wave which follows the first at infinite speed, until the second wave collides with the hesitant first wave and it too slows to the universal speed limit. In this collision, the front wave and following wave intermingle and where they cross, vortices form and where the vortices form, there are made photons. In no time at all, the (expanding) universe is full of energy waves propagating or vibrating at 300,000 KPS – and is full of photons that do have slight mass.

    As the (sentient) endless nested energy spheres expand from the centre of the energetic event (God or Dawkins) to create the basic universal electro-magnetic field, the vast numbers of photons gain new impetus and more energy as the waves pass by. The photons are essentially, relatively static fundamental indestructible particles (of slight mass) which are illuminated by the expanding waves.  When examined in laboratory experiments, new energetic events, expanding as spheres, energise in-situ photons in the existent Aether-Matrix, on all sides of the central event, e.g. heating a filament in a light bulb – and thus the photons appear to be moving apart at twice the “speed of light”.  Einstein's "Spooky action at a Distance". QED