Monday, April 4, 2016

The Panama Papers; the non-scandal ripe with possibilities

It seems to be big news to a lot of folks that there's many rich people who exploit the fine print of tax regulation to minimize their tax obligations. Nothing new about it at all. Why do you think KC Irving spent his twilight years in Bermuda?

In fact, the Irvings waged a lengthy battle with Canada's tax collectors re: the sale of supertanker loads of oil dropped off from all over the Middle East at their Canaport reception facility in New Brunswick. Those million barrel cargoes were sold to a Bermuda middle man between when they entered the Bay of Fundy and when they disgorged their load at Canaport. As it happened, any profit on that supertanker load of oil accrued to an Irving subsidiary in no-tax Bermuda instead of high-tax New Brunswick.

Which proves nothing more than that the Irvings were ahead of the curve. Nothing in these sensational Panama Papers is, on the face of it, illegal. The reason we have "tax havens" on this planet is, guess what, so rich people can avoid taxes!


Hey, guess who writes the tax codes all over the world?... the lawyers and accountants who work for the rich folks!

This is a surprise???

But here's why this non-scandal is pregnant with possibilities. Maybe, just maybe, enough people will be pissed off about this story that they'll be motivated to make some changes.

Tax havens need to be put out of business.

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