kNOWledge is the poWEr

Changing World

Tax Heaven

                 John S. Coleman: “What the government gives it must first take away (taxes)

 

Luxembourg is routinely named as a tax haven on many of the world’s authoritative lists of tax havens, including the one compiled by me and my two co-authors, Richard Murphy and Christian Chavagneux. But Luxembourg has managed to remain “under the radar” not least because its politicians and bankers have been denying for years that it is, or ever was, a tax haven.
The revelations suggest Luxembourg has been playing a double game. Luxembourg has been quick to comply with new regulations proposed by the Organisation for Economic Co-operation and Development (OECD) and the EU. In 2011, the OECD global forum on transparency and exchange of information commended Luxembourg for introducing new rules governing banking information or information protected by secrecy rules.
But at the same time, the revelations show that 340 well-known foreign companies have entered into secret agreements with the Luxembourg authorities, brokered by the accounting firm Pricewaterhouse Coopers. To take a random example that applies for many of these companies, the ICIJ have a letter to the Luxembourg tax administration written on a PwC letterhead, where FedEx lays down its plan to set up a limited liability company as a tax resident in Luxembourg – so subject in principle to Luxembourg’s corporate income tax…
{Article quoted from Phys.org website}
Additional insight:
So finally, some light on latest news about quality of our lifestyle, about products we buy every day….
One of the German parties just released to public media confirmed information about how market producers of specific things design them to have exact expiry date which also and usually is matched with expiry date of warranty claim….
In summary, we have here: pluses and minuses….
? “+”    1. Producer gets profit every time he sells item, so more broken items equal more sales. There is relatively little hassle of the dissatisfied customers and when product warranty is overdue, it’s done deal.
Examples:
– nowadays cars are designed to break within 2 first years, first major fix has to happen within this period of time (consumer reports and feedback)
– household items, instead of metal parts in them (like washer, dryer and other appliances) have i.e plastic ones; connecting electrical cables tear up after short usage, batteries in toothbrushes can NOT be replaced… list is endless….
         2. It is good news for tax revenue service in any country.
? “-“     1. Obviously: customer dissatisfaction, but no one cares as most important is PROFIT- not customer. What are the consequences? There is not too much to adjust in current market, as many sale laws would have to be reviewed. This is money (oops) and time-consuming. So customers still will spend more mullah in shorter time and become more unsatisfied, but that is not primarily a reason to change producer tactics.
           2. Second big factor is ENVIRONMENTAL damage as more broken, and many times, hard to recycle items pile up with passing time.
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This entry was posted on November 28, 2014 by in America, financial system, foreign affairs, politics and tagged , , , , , , , .

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