Still confused about the direction of tax havens?
Sunday, December 27, 2009
domain-b.com : Italy's tax amnesty brings back record €80 billion from tax havens
Saturday, December 26, 2009
Seattle Fran's smoked salt caramels in chocolate are sooo good!
OMG! I thought and you thought we knew it all. If indeed my blog is your only source of information about world events, then we both missed this. Oh no, catastrophy, read here for yourself:
AllGov - News - Ambassador to Luxembourg: Who is Cynthia Stroum?
Where are we supposed to get her smoked salt caramels in milk chocolate? How will she feel abouth Kachke'is, Bouneschlupp and Nonnefaschten without that smoked salt thing? We should secretly re-engineer Fran's stuff, because the real thing is only available in WA State. Maybe, just buy some sampling here online: http://www.franschocolates.com/story.php
AllGov - News - Ambassador to Luxembourg: Who is Cynthia Stroum?
Where are we supposed to get her smoked salt caramels in milk chocolate? How will she feel abouth Kachke'is, Bouneschlupp and Nonnefaschten without that smoked salt thing? We should secretly re-engineer Fran's stuff, because the real thing is only available in WA State. Maybe, just buy some sampling here online: http://www.franschocolates.com/story.php
Thursday, December 10, 2009
American Ambassador Stroum Arrives in Luxembourg
Remember Pearle Mesta? The first woman ever to be US Ambassador? To Luxembourg? And Irving Berlin's musical "Call me Madam"?
When Pearle moved to Luxembourg, she got confused and lost at the French-Belgian border. Truman's fault. Didn't she ask: "Hey Boss, where the heck is Luxembourg?"
Whereas Cynthia Stroum, according to this chronicle didn't miss the small target.
Saturday, December 5, 2009
Luxembourg: Tax Avoidance Undercut from Down Under
Seemingly solid tax avoidance strategies are the next targets in the War on Tax Havens. At the moment when "tax rulings" are under scrutiny, Australian tax authorities have issues with the strategies played around the ownership of the Myer department stores chain.
In a complicated square dance, where financial engineering set up structures in the Netherlands, Luxembourg and the Cayman Islands, a $1.5 billion profit went untaxed. This is of course heartbreaking for Australian tax authorities. Many other tax departments around the world would feel the same pain. And I bet that they have their own case load and are watching. Eventually some sort of G 8 to 20 will find the Australian approach as extremely clever. This is what is going to happen:
- Some G 8 to 20 will show how upset they are about tax avoidance. And the missing money.
- They will come up with a very sophisticated equation: tax avoidance = tax evasion.
- They will find an international body to set up new rules copied on Australia's. OECD, UN or really anything. It could be Red Cross as it is about bleeding money.
- Tax havens will scramble to give the illusion that they comply with the bullies' new equation.
- The Big Four will scramble to find ways to give the illusion of compliance with the bullies' new equation.
But business will no longer be what it used to be.
Wednesday, November 25, 2009
The IRS Gets Serious about Tax Enforcement | OMB Watch
A new standard is rising. In my opinion, the OECD double taxation agreement is already a relic of the past. Tax havens that believe the OECD standard shelters them from further pressures are up to a rude awakening.
Excerpt: In late October, a group of legislators introduced the Foreign Account Tax Compliance Act in both the House and the Senate. The chairmen of the Senate Finance and House Ways and Means committees, Sen. Max Baucus (D-MT) and Rep. Charles Rangel (D-NY), respectively, who wrote the bill, sought to force foreign financial institutions, including trusts and corporations, to provide information about their U.S. account holders. If a foreign bank were to refuse to comply with the new regulations, the government would levy a 30 percent withholding tax on income from U.S. financial assets held by that foreign institution. Neither of the bills has moved out of its respective committee.
Tuesday, November 24, 2009
Miami boasts high study abroad numbers - Campus
A well known and popular program of Miami University, OH, in Luxembourg. I very often meet people here who have been alumni of the Luxembourg program.
Democrats push $150B stock tax on Wall Street - TheHill.com
Potentially good news for Luxembourg, its Stock Exchange and its Fund Industry:
It would not be for the first time other peoples' stupidity would help us. Remember how the Eurodollar was born?
Remember also that the winner in international relations (it's always competition over good intentions) is the one who commits the fewer mistakes.
Sunday, November 22, 2009
Is Luxembourg more Toowoomba or more Ouagadougou?
Australia is a candidate for the UN Security Council. But there is also Luxembourg, same unbridled ambition. Down Under they are besides themselves and above all, all over us.
Is Australia trailing Luxembourg? Don't get so nervous about it that you call us names!
They call us Toowoomba? Some guy called us Ouagadougou three months ago. That cost him a vote or two. Psst! I support Australia. For me, you can have it! Good luck.
Excerpt from an article in the Sydney Morning Herald: Vote Count: Australia's Security Council
"Electing Luxembourg would be the equivalent of asking Toowoomba town council to manage international peace and security. It’s just not serious. That argument alone should be enough to carry Australia through the vote."
bidhttp://www.smh.com.au/opinion/blogs/worldview/vote-count-australias-security-council-bid/20091122-ispv.html
Is Australia trailing Luxembourg? Don't get so nervous about it that you call us names!
They call us Toowoomba? Some guy called us Ouagadougou three months ago. That cost him a vote or two. Psst! I support Australia. For me, you can have it! Good luck.
Excerpt from an article in the Sydney Morning Herald: Vote Count: Australia's Security Council
"Electing Luxembourg would be the equivalent of asking Toowoomba town council to manage international peace and security. It’s just not serious. That argument alone should be enough to carry Australia through the vote."
bidhttp://www.smh.com.au/opinion/blogs/worldview/vote-count-australias-security-council-bid/20091122-ispv.html
Hong Kong Is New Target of U.S. Crackdown on Taxes (Update1) - Bloomberg.com
And like clockwork, the machine ticks. (Sorry Switzerland, no pun intended.) Latest news on Bloomberg.
No tax haven can ignore this, even tax havens who ignore that they are tax havens. Excerpt:
“There is a phenomenal amount of money in undeclared status in Singapore, Hong Kong and maybe now China,” said Scott Michel, an attorney at Caplin & Drysdale in Washington. “The IRS has decided that the template has worked so well for Switzerland that it wants to mimic that investigative strategy with other countries.”
Saturday, November 21, 2009
Congratulations Madam: New Ambassador to Luxembourg Cynthia Stroum Unanimously Confirmed by Senators
Yesterday, the Us Senate proceeded to a number of confirmations. Among them Cynthia Stroum, Ambassador to Luxembourg.
Congratulations. Now she has to deal with another crowd.
EXCERPT:
James LaGarde Hudson, of the District of Columbia, to be United States Director of the European Bank for Reconstruction and Development.
Jose W. Fernandez, of New York, to be an Assistant Secretary of State (Economic, Energy, and Business Affairs).
William E. Kennard, of the District of Columbia, to be Representative of the United States of America to the European Union, with the rank and status of Ambassador.
Frederick D. Barton, of Maine, to be Representative of the United States of America on the Economic and Social Council of the United Nations, with the rank of Ambassador.
Carmen Lomellin, of Virginia, to be Permanent Representative of the United States of America to the Organization of American States, with the rank of Ambassador.
Cynthia Stroum, of Washington, to be Ambassador to Luxembourg.
Daniel W. Yohannes, of Colorado, to be Chief Executive Officer, Millennium Challenge Corportation.
Gustavo Arnavat, of New York, to be United States Executive Director of the Inter-American Development Bank for a term of three years.
Frederick D. Barton, of Maine, to be an Alternate Representative of the United States of America to the Sessions of the General Assembly of the United Nations, during his tenure of service as Representative of the United States of America on the Economic and Social Council of the United Nations.
Robert R. King, of Virginia, to be Special Envoy on North Korean Human Rights Issues, with the rank of Ambassador.
Michael C. Polt, of Tennessee, to be Ambassador to the Republic of Estonia.
John F. Tefft, of Virginia, to be Ambassador to Ukraine.
Friday, November 20, 2009
Nigeria pleased with efforts from European Union and Switzerland - Afrik.com : Africa news, Maghreb news - The african daily newspaper
It is an irony to see this article published 24 hours after discussing the Luxembourg NGOs' study about illegitimate funds in Luxembourg.
Quote: "The examining magistrate sentenced Abba Abacha to a suspended jail term, and ordered the confiscation of his assets of $350m. The money is held by his criminal organization and seized through international assistance in Luxembourg and the Bahamas," Geneva canton’s justice office said in a statement."
Well here you have it. A perfect illustration of the pervasive presence of stolen public assets around the world. Abacha stole $2.2 billion. As I understand only half is accounted for.
Egide Thein
Luxembourg: A Lesson of Democracy that saved democracy, II
You remember the harrowing incident, when the Luxembourg Government, stirred up by interest groups of the Luxembourg financial center, had a hyper-reaction about a study commissioned by the Cercle de Coopération of Luxembourg NGOs.
The study focused on the topic of illegitimate third world money that might hide in Luxembourg. The Government, stressed-out by a months' long fight and futile resistance to the OECD accusations of harboring tax evaders, had lost its nerves. Dealing with much smaller than itself, it did not miss that easy target and seriously muzzled it. That had my own blood boil, seeing this worrying trend away from what we are and have always been: well balanced and reasonable people. It prompted me to publish an article on the subject on September 8: http://feierwon.blogspot.com/2009/09/luxembourg-une-lecon-de-democratie-qui.html
On 27 October, it appears, a panel discussion was held in Luxembourg, with on one side the interests of the financial center and across the table the NGOs, at the initiative and invitation of Etika. According to press reports, this was a "dialogue of the deaf". In this debate of the deaf, it is clear that official Luxembourg, lost for some time on the slippery slopes of intolerance, has regained some of its good spirits by agreeing to sit at the same table with the NGOs. Missing however was the mysterious figure who had been blackmailing the NGOs with the threat to cut subsidies, and also missing was Professor Rainer Falk, author of the afore-mentioned study. Too bad we couldn't hear their contribution.
Reviewing the detail of the dialogue, however, I come to the conclusion that the dialogue was not only a "dialogue of the deaf" but also a "dialogue of the blind". On one hand was the financial center, certainly deaf to the NGOs. Indeed, you cannot find an any deafer person than the one who doesn't want to hear. On the other hand you had the NGOs, blind, unable to see what bank secrecy was hiding, which was exactly what the keepers of the secret were accusing them of not seeing. Those financial experts also say that the problem raised by the NGOs is minimal in Luxembourg. But then again, you can trust, but you should verify. The Madoff fraud in Luxembourg is also said to be minimal, less than 0.5% of deposits in the Luxembourg funds. But that translates into billions ...
The discussion went on mainly in monologues, with a rare and sparkling exception: Lucien Thiel, who as Member of Parliament is well known in Luxembourg public life, developed the idea that if dirty money were in Luxembourg, and because the State budget is fed almost by half with revenue from the financial center, then there would be dirty money in the generous subsidies that NGO's receive from the State budget, making them an accomplice receiving it. Richard Graf, President of Action Solidarité Tiers Monde, responded that in this case the NGOs, just like Robin Hood, would only return the stolen money to those it was stolen from. This response actually characterized this debate. It gives the NGOs the moral upper hand, whereas it pushes the financial center into the defensive again, and unnecessarily. A fierce defense of the financial center only makes sense on the main fronts. The center however wastes resources, its reputation and it will lose those battles anyway in which the opposite cause is perceived as being fairer and much more noble.
In fact, NGOs are not that blind when it comes to return the stolen money to desperately poor people. It is very likely indeed that they return a portion of the money stolen from the poor by:
• the kleptocrats of the world, presidents for life of "eternally developing countries"
• the corrupt of all backgrounds, because it takes two to tango
• the global artists of "transfer pricing"
• the professionals of global tax evasion
But let's face it, this meeting was a first and a good opportunity to throw out a feeler. Defending the interests of the financial with wholesale denials of any exposure to the dirty money is not credible. The Luxembourg financial center is like any other financial center exposed to dirty money. Denying this sounds like a good advertisement to attract more. That's where you want to hide! However advertising how you combat it, showing which severe sanctions there are would sound like a commitment to the contrary. The NGOs' recent action, condemned by the Government could as well be construed as an opportunity to acknowledge that problems exist and that they will be tackled with the help of volunteering NGOs. Why should the Government only listen to the advice of interested professionals such as the "Big Four" and large law firms when it comes to determining the route to follow by the financial center? The time has come perhaps to incorporate the ideas of NGOs in the process of reflection, and to gently correct erroneous numbers and estimates that may be in their studies. NGOs could thus support the political dimension of development aid in the good sense of the word "political", to guide sustainable action.
By ignoring criticism from NGOs, the Government is confined to charity towards the third world, which may be perceived as paternalism, or as a vain exhibition of newly-rich self promotion, or worse, a display of a bad conscience vis-à-vis Robin Hood. NGOs, are certainly not too blind in the countries where they operate, to become very useful pathfinders who mark targets for sustainable assistance, and to expose the thugs and practices that thwart their efforts on the ground.
Incidentally, I would like to take advantage of this episode and single out one of those embarrassing defensive slogans being used and abused by Luxembourg officials. This slogan sounds like a wonderful argument only to those who use it, not so much those who have to endure it, because it reeks pure selfishness. This is the slogan, uttered excessively, that lifting the veil of bank secrecy in Luxembourg would trigger a capital flight from Luxembourg to Singapore. Funny response to those who want to prevent capital flight from the South to the North and who think that Luxembourg is a receptacle of this flight capital. So we are basically in favor and against capital flight. It just depends on the direction of flight.
Whereas UN "statistics" talk about a billion people who suffer from hunger, and whereas "high level" delegates, such as Mugabe, meet at the FAO and are feasting in Rome, and whereas Luxembourg ambitions a seat on the UN Security Council to change the world, why not change the world at home? Why not stop ignoring the perverse effects of the causes that NGOs identify every day as the real obstacles to progress in the third world. Why not call on those NGOs to become the allies in this ambition to change the world, an ability that these NGOs, exemplified by ADA, have demonstrated by being the champions of micro finance. It is without doubt that potential of collaboration, once it is recognized, that is the most valuable outcome of this roundtable, that at least helped to put some democratic principles back on track.
It is indeed ridiculous and supremely suspicious of Luxembourg to be bent on being the world champion of aid to the third world, but in doing so, to accept to only treat the symptoms. Deliberately ignoring the root causes of poverty in the "developing countries", such as theft, corruption, capital flight and tax evasion, and certifying that Luxembourg plays no role in those, is intellectually unbearable.
Egide Thein
egidethein.blogspot.com
Wednesday, November 18, 2009
Call me Madam: New US Ambassador to Luxembourg
To all my dear friends out there: we got it almost done! See for yourself:
We have a green light! Let me summarize for you what happened yesterdayday in the 02:15 PM session of the Committee on Foreign Relations:
Committee on Foreign Relations: Committee ordered favorably reported the following business items:
..... Cynthia Stroum, of Washington, to be Ambassador to Luxembourg, ...
See? But its not yet all done. This is the Committee's recommendation. The Full Senate has a say, but honestly, it should be a formality. So my friends, watch Irving Berlin's "Call me Madam" so you learn about the protocol for the big day. And please, behave. Don't ask for a loan, even though we are poor again.
And watch here to learn when we are all through this.
Egide Thein
Friday, November 13, 2009
US Ambassador Designate to Luxembourg, Cynthia Stroum: Can we call her Madam yet?
People! We have to be vigilant! See hereafter, where in the process "they" have buried her name. I'm a bit paranoid about this. But why is this agenda of November 17 at 2:15 (after lunch) so crowded? What if the Chairman closes an eye for a minute. Or someone jumps a line. Then we get someone else. We don't want that to happen.
Who knows about these Senate Foreign Relations Committee sessions? Should we all attend? Or call that number. That would wake up everyone and we would get this finally done. Did you notice, that actually the whole session is rescheduled from November 10. What is it with those delays? We want her now.
Unfortunately, my friends, even after Tuesday, we still have to wait for the full Senate vote.
I stay awake, and as soon as I hear a leak, I'll let you know.
Now here is the official business:
Egide Thein
Pending Business
-Senate Foreign Relations Committee - Markup
02:15 pm
11/17/2009
11/17/2009
Revised
Senate Foreign Relations Committee full committee markup of S.1524, the "Foreign Assistance Revitalization and Accountability Act of 2009"; S.2727, the "START I Treaty Inspections and Monitoring Protocol Continuation Act of 2009"; S.1739, the "Daniel Pearl Freedom of the Press Act of 2009"; S.1067, the "Lord's Resistance Army Disarmament and Northern Uganda Recovery Act of 2009"; S.Res.341, supporting peace, security and innocent civilians affected by conflict in Yemen; a resolution deploring the rape and assault of women in Guinea and the killing of political protesters; H.Con.Res.36, calling on the President and the allies of the United States to raise in all appropriate bilateral and multilateral for a the case of Robert Levinson at every opportunity, urging Iran to fulfill their promises of assistance to the family of Robert Levinson, and calling on Iran to share the results of its investigation into the disappearance of Robert Levinson with the Federal Bureau of Investigation; T.Doc.110-21, Hague Convention on the International Recovery of Child Support and Other Forms of Family Maintenance, adopted at The Hague on November 23, 2007, and signed by the United States on that same date; T.Doc.111-14, Protocol Amending the Convention between the Government of the United States of America and the Government of the French Republic for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital; and vote on the nominations of Jose Fernandez to be assistant secretary for economic, energy, and business affairs at the State Department; William Kennard to be representative of the U.S. to the European Union; James Hudson to be U.S. director for the European Bank for Reconstruction and Development; John Tefft to be ambassador to Ukraine; Michael Polt to be ambassador to the Republic of Estonia; Cynthia Stroum to be ambassador to Luxembourg; David Huebner to be ambassador to New Zealand, and to serve concurrently and without additional compensation as ambassador to Samoa; Robert King to be special envoy on North Korean Human Rights Issues; Peter Alan Prahar to be ambassador to the Federated States of Micronesia; Gustavo Arnavat to be U.S. Executive Director of the Inter-American Development Bank; Frederick Barton to be representative of the U.S. on the Economic and Social Council of the United Nations; Daniel Yohannes to be CEO of the Millennium Challenge Corporation; and Carmen Lomellin to be permanent representative of the U.S. to the Organization of American States; and routine lists in the Foreign Service.
Location: S-116, U.S. Capitol
Contact: 202-224-4651 http://foreign.senate.gov [Note: Rescheduled from November 10.] (+WASE042+)
Seattle: New version of Boeing 747 jumbo jet emerges from factory | Seattle Times Newspaper
A nice Luxembourg success story has been the Cargolux all cargo airline.
Here is another first for the company: the first of the new line of Boeing 747. It will fly later in 2010.
Egide Thein
Tuesday, November 10, 2009
Veterans Day 2009
On this Veterans Day, I want to pull, from deep down in this blog, this most moving encounter with the memory of a GI, an authentic hero, who died in the Battle of the Bulge.
This article was published for Memorial Day.
Egide Thein
Saturday, November 7, 2009
Luxembourg to boom as hedge funds move onshore
Source: www.reuters.com
A great opportunity for Luxembourg. I don't want to repeat this, but let Ms Hanna Duer tell it in the attached article.
"The responsibility of the depositary bank is quite clear under Luxembourg law, the custodian is 100 percent responsible for the assets even if it uses a sub-custodian," Duer said. "It is very important that Luxembourg sticks to its guns over the Luxalpha affair, investors will realize the regulator is serious about protecting their assets," she said.
If that hurdle is cleared investors are likely to be even more enthusiastic about Luxembourg-registered funds.
I just add some practical advice. If I may.
Madoff is casting his shadow. The Luxembourg CSSF, FIU and Justice Department need to grow to meet such an inflow of companies to be regulated and occasionally to be investigated on worldwide activities. It has to be prompt. Justice delayed is justice denied!
http://www.reuters.com/article/ousivMolt/idUSTRE5A52NU20091106?rpc=60
Egide Thein
European Presidency viewed from a Tony Blair mirador.
I had the occasion to wonder on this blog about the non-candidates, undeclared candidates, unofficial candidates, virtual candidates, eternal candidates, in petto candidates, hidden candidates, restrained candidates, candidates in waiting for the European Presidency.
The President will be in any case a President with no program, no platform, no Presidential Palace, no Presidential guard on horses, even not on Sedgeways, no ADC with the nuclear code.
He won't be elected either, because there is no Constitution requiring an election. Which is very befitting for non-candidates, not to get elected. Because he will be the product of a mere paper signed in Lisbon, which gives it its codename, the President, he will only be president, lower case.
Here is a blog about TB and the agony of being non-candidate: by the end of the day, do the supporters of those non-candidates want them to get the job because they are the best non-candidates, or because they want to get rid of them at home? That would make them pushed-out candidates.
May the candidate who has no opposition win. No opposition, until he takes that phone call from General Powell. That will look suspicious!
Keep Tony Blair for PM? The address is obviously outdated. He is as much PM as J.C. Juncker is a candidate for the Presidency. But both however are non-candidates, maybe undeclared ones.
Egide Thein
Wednesday, November 4, 2009
Goldman left foreign investors holding the subprime bag | McClatchy
A tale of deception, greed, fraud, dysfunction and stupidity. Here is an excerpt, which is an interesting statistic:
"Underscoring the role of tax havens as a Wall Street marketing tool, a Treasury Department report found that as of June 30, 2008, $164 billion in U.S. mortgage-backed securities were held in the Cayman Islands and $22 billion more were held in Luxembourg, another tax-friendly zone."
Egide Thein
Frank Schleck wins the Tour de Curacao
I posted the following news from the Dutch newspaper De Telegraaf on facebook:
Egide Thein Schleck in de wolken? Op Curacao? Ja, well...
http://www.telegraaf.nl/telesport/wielersport/5241940/__Schleck_in_de_wolken_op_Curaao__.html?p=22,1
We know he is a good climber, so clouds are never out of reach. But this article in the Dutch paper "Telegraaf" tells us he is engaged to Martine. Done so yesterday.
Not sure if Martine has anything to do with Martinique or Sint Maarten.
Did you ever hear about the Tour de Curacao? No? Neither did I. There is none. But she is a beautiful first prize anyway. See here:
http://www.wort.lu/wort/web/sport/artikel/54614/fraenk-schleck-bald-unter-der-haube.php
Congratulations!
Egide Thein
Sunday, November 1, 2009
Delaware Beats Switzerland as Most Secretive Financial Center - ABC News
Delaware Beats Switzerland as Most Secretive Financial Center - ABC News
Delaware is number one. Switzerland is number three!
Luxembourg is number two, but doesn't make it into the headline. Though number three makes it there. Luxembourg demonstrates herewith its great art in concealment. Beware, Delaware!
The ABC News article is based on the following:
Again, beware Delaware, Luxembourg is catching up. Here is a bet: Next year, Luxembourg will be number one. It is not a secret why: it is the pending "Incorporation Transparency and Law Enforcement Assistance Act (S. 5926)." It will instantly deflate Delaware's secrecy standing. There are also some tiny little amendments to various provisions in the US tax code targeting tax havens, not yet very visible, but incisive for both offshore and domestic havens.
It will make Luxembourg instantly the number one on TJN's secrecy list, and the main target for all marksmen out there, sniping at tax havens. We are talking about many, many marksmen.
Egide Thein
Tuesday, October 27, 2009
Tax Justice Network: Does the EU want a president who opposes co-operation?
Tax Justice Network: Does the EU want a president who opposes co-operation?
There we go! One non-candidate is now an "unofficial" candidate. All non-candidates can escalate their non-candidacy into an "unofficial" candidacy. All "unofficial" candidates have to submit then to a "non-vote". We European citizens will be "non-voters" and cast no vote for "unoffiicial" candidates who have no program. It is so much better to have in fine an "unofficial" President rather than a non-President.
There would be some logic if that "unofficial" President is a "non-cooperative" President.
Egide Thein
There we go! One non-candidate is now an "unofficial" candidate. All non-candidates can escalate their non-candidacy into an "unofficial" candidacy. All "unofficial" candidates have to submit then to a "non-vote". We European citizens will be "non-voters" and cast no vote for "unoffiicial" candidates who have no program. It is so much better to have in fine an "unofficial" President rather than a non-President.
There would be some logic if that "unofficial" President is a "non-cooperative" President.
Egide Thein
Saturday, October 24, 2009
Luxembourg, Tony Blair, Luc Frieden, Tony Blair, Jean-Claude Juncker, Tony Blair, Andy Schleck, Tony Blair.
I just wanted to see what's doing in Luxembourg. And, hop! Tony Blair pops up on my screen as the non candidate leading a pack of four non candidates for the European Presidency. According to London bookmakers, Luxembourg's Juncker is number four in that race, as I learn from the popup. He, himself only an outsider!?
Actually I only wanted to double check on what friends in New York, by all means, told me to do urgently: Luxembourg's Minister of Finance Luc Frieden it appeared had found his way out of denial and of the frenzied defense of the Luxembourg bank secrecy. The very official website says, (or said):
Afin de garantir la position de la place financière du Luxembourg après la crise, "il ne suffit plus de défendre la situation actuelle, mais il y a lieu de définir une nouvelle orientation pour notre place. Une position constamment défensive peut en effet susciter des réactions à l’instar de celles de l’avant-dernier sommet du G20 !".
I went to the google engine which translates automatically, not without a popup that says that London bookmakers have Tony Blair leading the pack of non candidates 4-1. Though he denies being a candidate, as there isn't yet a job opening. Thanks for your patience, here is the translation, and I won't change a word, in order to make sure my personal bias doesn't infiltrate the text:
To ensure the position of the Luxembourg financial market after the crisis, "it is no longer enough to defend the current situation, but it is necessary to define a new direction for us. A constant defensive position may indeed provoke reactions like those of the penultimate G20 summit! "
Are we finally turning to reality? Question the indefensible? Let's see online what Prime Minister Juncker has to say on that same subject.
First Tony Blair pops up. He is leading the pack of non candidates but Mr. Juncker and his Benelux colleagues do believe he shouldn't lead the pack of non candidates as the favorite non candidate. Some say if there should be a leading candidate among non candidates, it should definitely be JCJ. Blair doesn't speak a word of Luxembourgish, which should disqualify him! Though Blair was not my question. Those popups are so distracting! The question was Juncker's stand on bank secrecy, because Luc Frieden seems to give in to reality, brutal reality.
Not so fast. Only over my dead Presidency says Juncker, who anyway is not a candidate unless someone would ask him, which would be premature, as there is no job opening yet. The Luxembourg bank secrecy may well be like a sand castle on the beach. Juncker is going to defend it to the last grain of sand! And let's say it again: too bad if the European Presidency, where he isn't a candidate, is lost.
This isn't Luxembourg anymore. This is ancient Greece! Choking Drama! Or maybe Shakespearean tragedy, because of the undeletable popup. It is all but the same development, a slow but inescapable climax. We know our heroes are lined up to meet Destiny. Dark clouds gather over the frightfully calm ocean. As mighty Stratocumulus sarkozyus and Cumulus merkelensius are swelling with anger, everyone knows, the sand castle and its defender are doomed.
Only Tony Blair thinks it is a good idea for Juncker to try hold out. Perfidy! He wants you eliminated from the lot of non candidates, or even worse: he wants that no one even asks you to be a candidate. How treacherous!
Let me get you someone in the real world to guide your strategies, all of you. Go to www.letour.fr to see information about the Tour de France 2010. I bet you 4-1, that first Tony Blair will pop up. Delete, and watch Andy Schleck at the presentation. He knows that being second doesn't win the Tour. He says he is going to race and he is in it to win.
That's honest talk. He says he is a candidate. He is not saying that he isn't yet a candidate because someone has to ask him to be a candidate. And he is in it to win. He also knows that the one, Tony or someone else, who leads a sprint too early, is not going to win. As is the one who plays sand castle and lingers in fourth position. That's too far behind.
Though Andy Schleck knows how this all works, he cannot be a candidate for President. He says openly, honestly, he wants to win the Tour 2010. Now don't do this to me. As no one seems to be a candidate, I dread the day when they call me out of retirement! But let me tell you right away: I'll only accept if my place of work remains Naples Florida.
Egide Thein
Ech schwëtzen Lëtzebuergesch, Je parle français, Ich spreche Deutsch, Hablo español, Falo Português, Io parlo italiano, Ik spreek Nederlands, Jeg taler dansk, Jag talar svenska, Μιλώ ελληνικά, Mówię Polski, Eu nu vorbesc limba română, Аз говоря български, I speak magyar,
Or at least I'm going to learn. But I do understand Tony Blair's language.
Wednesday, October 14, 2009
‘Elephant’ has finally charged » Comment » This Is Guernsey
‘Elephant’ has finally charged » Comment » This Is Guernsey
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Posted using ShareThis
This is well in line with my former blogs on egidethein.blogspot.com and the French language blog feierwon.blogspot.com. Well in line, but it still is a surprisingly fast and brutal blow at a not so much expected place. One could have assumed some biased protection from the British tutor for some time. This is the most serious signal that tax havens and "paradis fiscaux" are to be smoked out. Those who push the startegy, expect to repatriate billions of tax dollars/euros/etc.
The Guernsey Income Tax (Zero - 10) system basically is taxing resident companies at 20% on worldwide income. But companies that are wholly owned by non-residents and have no Guernsey source income are subjected to either 0% or 10% corporate tax since 2008.
The consequences of the war on tax havens will be immeasurable on those jurisdictions, the Channel Islands and many Caribbean Islands. I would argue that the powers out there might well have to intervene in support of the economies of most of their targets.
Alea jacta est!
Tour de France 2010 and Contador, Armstrong, Schleck Previewing
Here is the magic route. Holland has, it seems, some mysterious power of attraction on Tour organizers. I bet the next Tour of California will start in Amsterdam. But here it is, TdF 2010:
Rainy days in the Low Lands, wind, cobblestones and lots of mountains. You'll know the Tourmalet inside out.
Versus, be there!
Tuesday, October 13, 2009
Luxembourg drives Union to distraction
This is an article published by europolitics:
http://www.europolitics.info/europolitics/luxembourg-drives-union-to-distraction-art250833-46.html
Hopefully it is not true. I would feel sorry for Luxembourg and Switzerland.
http://www.europolitics.info/europolitics/luxembourg-drives-union-to-distraction-art250833-46.html
Hopefully it is not true. I would feel sorry for Luxembourg and Switzerland.
Saturday, October 10, 2009
AddThis - Sharing http://www.telegraph.co.uk/news/newstopics/politics/labou...
People! We are going to have a wonderful and bright European democracy with someone emerging to be the First NON-ELECTED President of the European Union. Through the Lisbon Treaty people give away many of their sovereign rights to non elected ambitious individuals who are accountable to some rubberstampers only. It is a proven system though: ask Gromyko, Brezhnev, Bulganin and they'll say that it worked.
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Friday, October 9, 2009
Testimony of Cynthia Stroum Ambassador-Designate to The Grand Duchy of Luxembourg Senate Committee on Foreign Relations
Notes: This text in black font is the original testimony. We all are watching these testimonies, and don't we have to admit, the Ambassador designate Cynthia Stroum has a lot of knowledge about Luxembourg, unlike her famous predecessor, Perle Mesta, who asked the President: "Hey, Boss, where the heck is Luxembourg?" (Liechtenburg in Irving Berlin's fiction "Call Me Madam"). Though I must add some comments (in red in the text), this is all meant to be helpful to have the new Ambassador totally informed and comfortable in our midst. Senators, please don't hesitate with your Yeah.
Here is the testimony:
Testimony of Cynthia Stroum
Ambassador-Designate to
The Grand Duchy of Luxembourg
Senate Committee on Foreign Relations
October 8, 2009
Madam Chair and Members of the Committee: Good Afternoon.
Thank you for considering my nomination to be the next Ambassador to the Grand Duchy of Luxembourg. I am honored to appear before you today. If confirmed, I look forward to working closely with this Committee to ensure the strong relationship between the United States and Luxembourg continues. I am especially grateful to Senator Murray and Senator Cantwell for their years of friendship and support.
I would like to introduce and publicly thank the light of my life – my daughter, Courtney – who has supported me through this entire process. I want also to express my deepest gratitude to President Obama and Secretary Clinton for the trust and confidence they have placed in me with this nomination.
Every Ambassador needs to be skilled at different roles: ready to lead the Embassy, to clearly communicate strategic direction, to protect America’s interests and to reflect America’s values. With my broad range of experience in business and the arts coupled with my diverse background as an entrepreneur and civic leader, I believe I can serve in those roles with fresh enthusiasm, creativity and dedication.
I have been an angel investor in over twenty successful technology, biotechnology, and retail start-up companies. I come from Seattle – one of America’s greatest entrepreneurial cities – and I have worked closely with some of our country’s greatest technological innovators to transform ideas into results. My experience makes me uniquely qualified to recognize new opportunities and partnerships for American business in Luxembourg, which is poised to grow as a European hub of technology and e-commerce.
With success, comes responsibility. Community service has been an enduring legacy in my family. As a single mother, I raised my daughter and served my community by serving countless hours on non-profit boards. Over the last 30 years, I have been active in numerous civic and charitable activities covering many areas including medical research, education, theatre, ballet and public television, channeling my philanthropy through the two non-profit foundations that I established.
Since my father’s devastating diagnosis of pancreatic cancer and death in 2001, I have been most deeply passionate about cancer research. I am the Founding Chairman of the Pancreatic Cancer Action Network, the leading U.S. organization working to advance research, support patients and create hope for the pancreatic cancer community.
In the last year, the Government of Luxembourg has also been active in cancer research, implementing an unprecedented international collaboration with three of the most prominent biomedical science leaders in the United States (two of which are based in Seattle). This strategic partnership focuses on systems biology, molecular diagnostics and creation of the Integrated BioBank of Luxembourg for the collection, storage, processing and distribution of biological specimens and the data that accompany them. Such biobanking plays a critical role in biomedical research, particularly cancer research. This cutting edge work is a terrific example of the kind of public/private partnerships I will work to foster between our two countries.
There is a deep reservoir of goodwill between the United States and Luxembourg. As a small but important European Union member country – in fact, one of the six founding members of the EU’s predecessor organization (the European Economic Community) – Luxembourg continues to play an active role in the EU and is an important partner in advancing our European agenda. And our ability to work with Europe is key to advancing our agenda in many other parts of the world.
Despite its small army and police force, Luxembourg deploys troops abroad in several multilateral missions. Luxembourg is an active member of the North Atlantic Treaty Organization. In fact, Luxembourg was one of NATO’s founding members. The Luxembourg military has a current strength of approximately 1,100 professional soldiers, enlisted recruits and civilians. It has supported NATO’s International Security Assistance Force (ISAF) in Afghanistan continuously since 2003 with a contingent of nearly a dozen troops embedded with Belgian forces at the airport in Kabul. Luxembourg has also participated in peacekeeping and civilian missions in the Balkans, Lebanon, and Africa.
As a former Luxembourg soldier, I was startled about that candid revelation of classified material, such as Luxembourg forces, all 12 of them, in Afghanistan. This is so secret that it is even covered by Luxembourg banking secrecy.
I was years ago a guest at a luncheon at the Kremlin. Towards the end of the luncheon, the Soviet Prime Minister who had spent his time talking to his guests of honor quite thoughtfully became aware that he hadn't yet talked to me and said: "Colonel, when we are talking Luxembourg Armed Forces, how many men are we talking about?" My answer, which under those circumstances cannot be refused but should reveal nothing, that answer was: "Mister Prime Minister, do you want that number with or without the band?" He said: "Does that make a big difference?" And I only disclosed that at a comparable percentage, the Soviet Armed Forces would have a band of 500,000.
I believe they made complicated calculations to find out that mysterious number. I don't know what their chief mathematician got wrong, but a few months later the Empire collapsed and the Cold War was won. I know, history rewrites itself.
If confirmed, I plan to build on this record to encourage further engagement by Luxembourg on the world stage through continued contributions to important international missions such as these. Our bilateral relationship with Luxembourg is overwhelmingly positive, but I will not take that for granted. I will work to sustain and strengthen that partnership so that Luxembourg continues to be a dependable ally and partner of the United States.
Luxembourg’s financial services and banking sector is sophisticated and well-regulated. I'm sure they appreciate that one. Banking is the largest sector in the Luxembourg economy and has specialized in cross-border fund administration. As Luxembourg's domestic market is relatively small, the country's financial center is predominantly international. Overall, we have seen good cooperation from Luxembourg to counter money laundering, tax evasion and terrorist financing. Luxembourg committed to international standards on exchange of information in March 2009 and signed an agreement in May 2009 with the United States to amend the existing U.S.-Luxembourg income tax treaty to provide for full exchange of information for tax purposes.
On July 8, 2009, Luxembourg was the first country to be removed from the OECD “grey list” of non-cooperative jurisdictions concerning internationally-agreed tax standards and banking secrecy. Showing its commitment to provide for the full exchange of tax information, Luxembourg has signed over 12 such agreements or amendments and has won praise from the OECD Secretary General for being the only country to do so in less than five months. Yep, Gold Medal! If confirmed, I will encourage Luxembourg to continue to demonstrate serious efforts to increase the transparency of its banking system in cooperation with the international community. There you go and I'll help. Psst! Did you know what is in those bills still to come before Congress, where Luxembourg is named together with really bad jurisdictions?
To build upon the already strong foundation of goodwill between our two countries, an essential part of my public diplomacy strategy will be building strong people-to-people ties. This includes reaching out to a new generation of youth who did not bear witness to the devastating battles fought during World War II.
Building relationships for the long term is essential. In her recent speech to the Council of Foreign Relations, Secretary Clinton said we want to “reach out beyond governments, because we believe partnerships with people play a critical role in our 21st century statecraft.” Should I be confirmed, I would plan to actively engage in American Smart Power using the full range of public diplomacy programs available, using exciting new technology and media to reach out to Luxembourg’s youth and connect younger audiences in both countries. They'll love it.
Last, but certainly not least, there are approximately 3,000 Americans living in Luxembourg and many who visit every year. If confirmed, I would make my highest priority always the welfare and safety of our American citizens overseas and ensure that the Embassy responds to their needs.
Oh no! You didn't mention the Luxembourg American Cultural Society headquartered in Wisconsin! Let's catch up on that one: before Luxembourg nowadays became poor and has to borrow money (history repeats itself, remember Call me Madam), it was very rich. But only for 50 years. Before being very rich, it was already very poor, and people emigrated to the United States. One third of the population. Which has as a result that probably about 350,000 descendants of Luxembourg immigrants live in Chicago and Wisconsin, Minnesota and neighboring States. Not negligible at a time when elections are won with a dozen votes. But we'll bring you up to speed on all that, and maybe you'll be able to attend next year's official inauguration of the Luxembourg American Cultural Center in Belgium, Wisconsin?
Madam Chair, Members of the Committee, if confirmed, it will be my greatest honor to represent the United States in Luxembourg. Thank you for your consideration. I would be happy to answer any questions you may have.
Sunday, October 4, 2009
Switzerland: How Polanski could be the Slippery Slope from Tax Haven to Judiciary Haven Designation
"Wenn I numme wüsst ..."
A Swiss friend corrects me on my former post. Polanski bought his property in 2006 only, though he vacationed for years in Switzerland. Please see this article in Neue Zürcher Zeitung, NZZ Online (in German):
http://www.nzz.ch/nachrichten/schweiz/bund_hat_polanskis_hauskauf_in_gstaad_bewilligt_1.3780141.html
Funny thing is, Polanski had been on an international arrest warrant for 6 months already, when on April 28, 2006 he acquired property at Chalet "Milky Way" in Gstaad, Switzerland, registered under # 4466-2 and assessed at CHF 1,600,000. The market value is supposed to be much higher.
Not only was there at the time an international arrest warrant. The cantonal economic offices and the Federal Justice Department both gave their written consent to the transaction, as required by Swiss law for foreigners buying property in Switzerland, to French-Polish national Roman Raymond Polanski-Seigner. Swiss officials assert that the law does not require them to do any background checks.
Obviously this story again verifies the equation: tax haven = judiciary haven = regulatory haven.
It just turns water on the mill of those who will pursue the next crusade against judicial havens. Switzerland will be on someone's soon to come list of judicial and regulatory havens, though not alone. Luxembourg will be there too, among all the other usual suspects. That prediction is easy to verify: just follow certain legislation being incubated at the US Congress, under Congressman Barney Frank's Committee.
NZZ rather impatiently raises the question: in our Administration, doesn't the left hand know what the right hand is doing? If there is an arrest warrant in the left hand, shouldn't the right hand deny the required approval, or better, proceed to arrest the prospective buyer, right there?
The official answer is "no". There is no requirement that would provide an obligation for the left hand to know what the right hand is doing. Good answer, but that was close!
Imagine the answer had been "yes"! Then proof would be there that Switzerland is really a judiciary haven! You could easily surmise that Polanski was left alone for so many years, because he was rich and famous. Polanski's sudden arrest then by the left hand had to be somewhat linked to the right hand's trouble with UBS in the US, another sign of judicial despotism . Luckily, we are assured now by the Administration that it isn't so. One has nothing to do with the other.
Careful though with those assurances. They make both hands willfully blind by design, another definition of a judicial and regulatory haven. Switzerland, you cannot win the argument.
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