Monday, 6 June 2016

LIQUIDATE RYANAIR - CLOSE STANSTED

RYANAIR CRAMS THEM IN AT STANSTED


UPDATE 4TH SEPT 2018: Michael O'Leary was interviewed on BBC Radio 4 this morning. He claims that (wait for it - I love a good conspiracy theory) the shareholders of the companies that own UK airports are sabotaging services at Ryanair's main UK hub Stansted Airport. 

How? by restricting service staff numbers TO EMBARRASS Ryanair. Our sorry tale below was not due to poor staffing by the airport owners but was a deliberate policy by Michael O'Leary. He cynically oversells Ryanair flights, then as soon as passengers pass through the Gate sufficient to fill his planes - he shuts the Gate. In our case, our friends were the last to get through - we were the first to be stopped. It ruined our holiday - cost us over £1,500 and - guess what, O'Leary will not compensate us; or anyone else. 

So, my advice is avoid Stansted Airport, avoid Ryanair, avoid the arrogant cynical crook O'Leary and rejoice when Ryanair goes bust - to be replaced by decent firms who treat their staff, pilots and customers with decency, honesty and goodwill. Fare ye Well Mr O'Leary. 

*****

28 Sept 2017. Another 1,800 flights cancelled. This seems due to more action by aircrews. Maybe they are fed-up of being treated with contempt by billionaire Michael O'Leary. He denigrates their skills, hi-jacks their free-time and abuses their sense of responsibility. If he was in the business of tarmacking  drives - would he corral ignorant, uneducated workers into caravan parks on zero-hour, zero-pay, zero-hope, zero-life contracts? It's time to consign 1980's Predatory-Monetarism, Exploitation and Greed-is-Good crap to the dustbin of failed economic history. Is RYANAIR finished? 


21 SEPT 2017 

STOP PRESS:

I have read in the past 15 months, since RYANAIR ruined our holiday by closing the gate on our flight, that they habitually overbook passengers by 10% to 20%. They close the gate when all the seats are full - leaving the rest stranded. In our case, our friends went through the gate, we were stopped - even though the flight (a monopoly route to Perugia from Stansted) then sat on the tarmac for 3 hours. We had stayed the previous night at the Stansted Hotel to make sure of catching the flight. In all, our costs were over £1,500 - plus a ruined holiday rest and great aggravation. Say - £20,000 worth of Ryanair contempt for us as passengers and of contempt for all the ground staff at Stansted who have to administer this cynical policy. 

The contempt also applies to supposed "compensation and refunds" - which Ryan Air resists paying with all its guile, cunning and muscle. They are the supreme crooked con-men and bully-boys of the industry. 

So, I am greatly pleased that the aircrews are striking back - because they too are treated with utter contempt by Ryan Air. I hope it breaks-up the company before this corporate canker spreads to other airlines and ruins the industry; which depends on goodwill between passengers, staff and owners. Ryan Air's planes and schedules should be given to efficient, honest, friendly operators. "Budget" shouldn't mean "Bent". Call in the liquidators. 


Guardian: Ryanair customers face the threat of a fresh wave of flight cancellations as the airline’s pilots prepare to reject an offer of a cash bonus if they give up days off.
The Guardian has obtained a draft letter signed by Ryanair pilots from across Europe, rejecting the offer and warning they will now “work to rule” - refusing to work beyond their basic contractual obligations. Ryanair had told pilots earlier this week that if they declined the £12,000 payment more flights might have to be scrapped.
The no-frills carrier is scrambling to cope with a public relations disaster after it announced plans to cancel up to 50 flights a day until 31 October, citing a “mess-up” in how it schedules time off for pilots. The move has affected 315,000 customers.


Day 22 - Still no response. I will continue this after Referendum Thursday - If UK Dictator for Life, Boris, and his familiar Gove allow it.

Day 11 - Still no response. Still hiding from their customers. But try this telephone number for Howard Millar, Deputy Chief Executive & Chief Financial Officer 00 353 1 945 1212. They have to do business with the outside world so some of their phones must be answered. 
Irritatingly, I read that "billionaire" CEO Michael O'Leary is a strong REMAIN advocate in the Brexit debate, as am I, so I can't berate him for that. But are his or Ryanair's billions offshore?  

LIVE CHAT sent me another webpage to claim a refund. That also cut off in the middle of filling it in. I did speak to someone on a help line in North Korea or somewhere like that. She said Google Chrome cannot handle Ryanair pages and I should install Firefox. Call me cynical but I don't believe she is right - re-configuring my computer to match Ryanair's technology is a route to madness.
 Phones and website forms all cut off after 10 minutes or so. The staff and executives at Ryanair seem to be hiding from their customers. Companies quickly collapse after they avoid their customers. ( DOING A RATNER.  Gerald Ratner wiped £500M off his jewelry chain (H Samuel etc) overnight, by insulting the taste of his customers. )
Operations Director, Michael Hickey's email is hickeym@ryanair.com . I will find the others. They have got my-Irish up. I may have to visit Dublin. Watch this space. 
******

8 June 2016 - DAY 10. 
3 Hrs wasted trying to contact:
https://refundclaims.ryanair.com/
RYANAIR WEBSITE for refunds cuts off at SUBMIT, says "cannot process".
These contact numbers all link to the same ansaphone "Too busy to take calls"
0871 246 0000
0843 504 7252
00-353 1812 1212
0870 100 0013  

6th June 2016.

Despite having Boarding Cards, we had to queue with baggage at Ryanair's so-called Check-in-Desks, for 1.5 hours at 5.30 in the morning, for a 7.30 am flight, costing £617.54, with hundreds of other rudely herded, angry and ignored Ryanair paying customers, in the chaos of Stansted Airport UK, RYANAIR's main UK hub.

We had taken the precaution of staying the previous night at an airport hotel - so as not to miss our flight. Our friends just made it through, 2 minutes ahead of us; then Ryanair slammed down the gates and split up our party.

 Ryanair demanded we pay again for the same flight the next morning, and threatened to again make us queue for 2 or 3 hours at their Check-In desks with no guarantee of catching that flight either. We eventually went back home and missed our pre-paid vacation. Our journey is insured via Ryanair by INTANA travel insurance - so I have just claimed £6,111 in costs and compensation. I'll let you know if they pay-out, or if the insurance company simply adds insult to injury.

TO: MICHAEL HICKEY - Chief Operations Officer - RYANAIR

6th June 2016. Still no response from the contemptuous executive morons at Ryanair, who despise their customers. If these elusive Directors can't run a Check-In desk, or answer complaints, can we trust them to  run an airline.

 All Executives
  • Michael O'Leary Chief Executive Officer & Executive Director.
  • Michael Hickey Chief Operating Officer.
  • Neil Sorahan Chief Financial Officer.
  • John Hurley Chief Technology Officer.
  • David O'Brien Chief Commercial Officer.
  • Greg O'Gorman Director-Ancillary Revenue.
  • Derek Thaddeus Quinn Director-Engineering Division.
Ryanair Ltd. is an Irish low-cost airline headquartered in Swords, Dublin, Ireland, with its primary operational bases at Dublin and London Stansted Airports. Wikipedia
Bag informationIn economy, prices vary by itinerary. More Ryanair bag information

DO THEY PAY TAX? As the OECD, UN and national tax-collectors worldwide investigate the Panama Papers and earlier data published about tax-haven schemers and dodgers,the UK tax collectors, HMRC, are following France's example, where France is claiming one billion Euro in taxes from Google on the grounds that Google have a commercial taxable presence in France, so likewise HMRC are challenging major offshore companies and raising "protective assessments" on the same grounds as France-v-Google, namely that a substantial UK base means, in law, that the company must pay tax on its UK profits.
Ryanair, claiming to be tax-based in Dublin, pays no UK tax on its £730 million annual profit, earned from 12.6 million customer flights per month, 116 M a year. It reserves Euro 516.4 M for tax in its 2015 Balance Sheet, but if Stansted, with 1.89 M passengers per month, is classified as a UK taxable presence now and in earlier years - will the tax bill rise? 
Ryanair is already in dispute with the UK tax authorities about a sham "self-employed" scheme for its UK based pilots:
LETTERBOX COMPANY AVOIDS UK TAXES 
"HMRC is conducting its own investigation, and has "issued 'protective assessments' for £47m relating to British income tax and national insurance contributions between 2010 and 2013," according to The Times. HMRC told Brookfield that it failed to believe that pilots "had any genuine right of substitution", meaning it was not possible for Brookfield to appoint a substitute pilot with an airline and pay for that pilot. The non-ministerial department that is responsible for the collection of taxes said that Brookfield should have paid PAYE tax and National Insurance on the pilots' payments"

WHY I AM PISSED-OFF - MY COMPLAINT AS AN ABUSED RYANAIR CUSTOMER:

6th June 2016.

We queued at their so-called Check-in-Desks, for 1.5 hours at 5.30 in the morning, for a 7.30 am flight, costing £617.54, - with hundreds of other rudely herded then ignored Ryanair paying customers, in the chaos of Ryanair's area at Stansted Airport UK, RYANAIR's main UK hub. We had taken the precaution of staying the previous night at an airport hotel - so as not to miss our flight. Our friends, 2 minutes ahead of us - just made the plane after sprinting hundreds of yards along corridors. We were stopped - as they closed the gate at 07.00. The plane actually took-off at 10.15 am - nearly 3 hours late and 3 hours 15 minutes after we were barred.

************

TO: MICHAEL HICKEY - Chief Operations Officer - RYANAIR

6th June 2016. Still no response from the contemptuous executive morons at Ryanair, who despise, bully and abuse their customers. If these elusive Directors can't run a Check-In desk, or answer complaints, can we trust them to  run an airline. 

2 Jun 2016,

Dear Mr Hickey,

Is Ryan Air going to acknowledge my complaint? We should now, today, be enjoying our holiday; not back home chasing reluctant executives who are avoiding their customers.

I am an old fashioned professional man in my 70s. Can you imagine what aggravation it takes to drive me to peppering my emails with bad language?

Is this complaint one for the Twittersphere?

Cordially

Noel Hodson

******

To Mr Michael Hickey
Chief Operations Officer
Ryan Air
30 May 2016.

Dear Mr Hickey,

GET YOUR BLOODY ACT TOGETHER! WHO THE HELL IS IN CHARGE? WHERE ARE THE F|******G RYAN AIR AIRPORT MANAGERS?

In our 70’s, we travelled to Stansted last night and stayed at the Radisson Blu Hotel, to catch your 7.30 am flight to Perugia this morning. We queued at your check-in desk for 1.5 hours, to be told that our bags were not paid for and to go to your Yellow machines; which after much confusion, during which the single Ryan Air employee allegedly helping us disappeared, the machine told us the flight was closed at 7.00 am. Your staff told us that we had irrevocably missed the flight. Our two friends we were travelling with had gone ahead. So I sprinted to the security area to find them – but failed and had to come back out. Which I was allowed to do. Had I been a terrorist, I could have left a bomb in the mass of people in the security zone. Ryan Air ought to have 2 or 3 times the number of check-in desks to cope with such passenger numbers – or aren’t you aware of how many have to be processed to get on  your flights?

Last year we arrived 3.5 hours before take off and still had to run along corridors for hundreds of yards to get the plane. Do you enjoy pushing your paying customers to the brink of collapse?

In the event, our friends, Michael & Carol, are still stuck on the tarmac, at 10 am for a 7.30 am take-off. If you had a manager who can read and write at check-in, we could have been politely dealt with and easily caught the plane.

As it was  a v. short holiday, there isn’t time to re-route. And in any case we are exhausted by the needless hassle. Your operation  is a bloody shambles. There should be a giant sign over the check-in desks “If you haven’t paid baggage fees – you cannot check in here – Go to the baffling, stupid unmanned yellow machines” . There should be 5 or six people checking the queues for such mistakes. The check-in staff should be authorised to take money on the spot. Can we please have our money back! And will you pay for The Radisson! And for our car hire in Perugia and our prepaid hotel expenses in Gubbio.

Please send me Michael O’Leary’s private address, so we can call and vent our feelings.

Our next trip to our favourite Gubbio hotel will be via Florence – so Stansted and Perugia airports and Ryan Air will lose the business. Get your bloody act together ! Its not difficult to count the passengers and divide by the open desks. Its called long-division.

Noel & Pauline Hodson, Oxford



Friday, 3 June 2016

BHS - COMPLEX TRANSACTIONS

Where are off-planet companies taxable ?
BHS – Following up The Guardian’s 21 Oct 2005 report of the £1.2B tax-free dividend paid from Arcadia to Lady Tina Green in Monaco, enabled by a 7.5 year bank loan to the group, it would be sensible for HMRC to confirm that Lady Green didn’t & doesn’t spend more than 90 days a year in London – which would make her UK taxable; and to re-check the terms of the loan, to see if it and the loan repayments should be re-classified as a personal loan and so part of Sir Philip’s director’s salary – and taxed under PAYE. £600 million in tax would compensate for UK tax-payers paying the BHS pensions deficit.

Noel Hodson, Oxford, 3 JUN 16

The cash will be coming from a seven and a half year loan to Arcadia. "It is senior debt, not rinky-dinky funny money. It is plain vanilla, not chocolate or raspberry," said the tycoon, who also owns Bhs. "It is affordable and it is not over-aggressive. It leaves the business with plenty of opportunities to grow.



LAND REGISTRY SOLD TO HEDGE-FUND




UK Land Registry – Cayman Limited
A subsidiary of Zurich & Delaware Hedge Funds Inc.
(incorporated under Malaysian law)
C/O Price Waterhouse Coopers, London







26 June 2016.
Mr & Mrs Smith,
26 Acacia Avenue,
Wigglesworth, Staffs. UK


Registry Number UK356782HJ DED

Dear Sir and Madam,

We regret to inform you that our review of all UK title deeds proves a prior claim to your property by Osborne, Cameron, Javid, Evictions  Jersey  LLP, and we have accordingly re- registered 26 Acacia Avenue to this company.  The owners plan to redevelop the area and will be issuing you a Notice to Quit within 7 days.

Should you wish to query this change to the Register, you may write to PWC, London, by registered post, by 6pm 27th June 2016, who will re-examine the ownership documents for a fee of £10,000.

Alternatively you are entitled to launch a counterclaim against our agents in the Court of Bermuda, for which you will need to pay front end legal fees of £1 million.

Yours faithfully,

Imatotalbastard

UK Land Registry – Cayman Limited.


Thursday, 28 April 2016

TESLA & GREEN ENERGY

INVESTMENT CHOICES. Green or Dirty?

28 APRIL 2016  

Dear John,

Yes, electricity can all be green and soon will be, worldwide.

April 2016 - TESLA took 325,000 orders in  one week 
Electric cars use electricity, immediately improving street-level air - electricity which is capable of being entirely green. I've been following this for 10 years, for our Transport Internet project presentations. My current professional, considered advice to any who will listen, is that fossil fuels are rapidly on their way out for driving dynamos (still to be used for plastic, chemical and medical products, and many more such high-tech applications); and green power is replacing fossil and nuclear fuel. Only the British government and our oil /gas companies do not appear to see this happening world-wide.

The UK is giving its most precious natural assets, wind, wave and tidal power, to other nations, buying instead of building our own green energy plants. We are also relying on others for our dirty energy, such as the old fashioned French /Chinese nuclear plant at Hinkley Point. This is economic madness or blank bureaucratic stupidity. 

Even dirty fuel reliant nations such as China and India (wood, gas, nuclear, brown coal and oil) are moving rapidly to green energy, while protesting that they will continue to burn stuff, just as the West has for 300 years of industrial growth. But they can't breathe their air and the citizens are rebelling. ...And Green is Cheaper.

Germany has plans for a Sahara solar energy plant that will power the whole of Europe. A large example opened recently in Morocco:

South America is rapidly converting to renewables:

Iceland is currently laying a cable to the UK to sell us geothermal electricity.

The world's biggest coal company has just gone bust.

Major oil companies' sales are rapidly diminishing. Saudi Arabia is transforming from oil to other industries.

I think that the change from fossil fuels (and nuclear) to renewable energy is happening now - far faster than market analysts forecast or want to admit. If I were an investment adviser, which I am not, I would recommend selling fossil fuel shares and buying renewables. The world is going all-electric - the fossilised old industries are strongly resisting the change.

The industrial TTIP players are trying to introduce laws to stop countries updating their economies. I hope they fail now - but in any case they can't stand against the tide of innovation.
"Is democracy threatened if companies can sue countries ...
31 Mar 2015 - The British government claims TTIP could add £10bn to the UK ... Germany was sued using ISDS by the Swedish state-owned power company ..."

But I think TESLA (Elon Musk) is right; I think TESLA shares will soar; electric vehicles will immediately clean our street air, and the global electricity supply will quickly become green.

QED - Noel


-----Original Message-----
From: John N
Sent: 27 April, 2016 11:56 AM
To: Noel Hodson

Subject: RE: Armstrong Economics We are headed into a new ice age but when

Are electric cars green, or is the pollution just displaced to the power stations, most of globally which use fossil fuels and look set to do so for some decades?

John







Tuesday, 5 April 2016

PANAMA PAPERS - LEAK FROM TAX-HAVENS






























12 May 2016 - update:

The Panama Papers data search facility is working.
SEARCH HERE

Are you featured? Is your property registered offshore? (as is the UK tax offices portfolio).
Find old (rich) friends - and make new ones, in exotic locations.

If you happen across my lost offshore bank account holding $100 million - just forward the cash to me ...and I'll pay the tax and pay you a commission.

My first search took me to 3 unexpected routes to tax-havens - the financial district of Ekaterinburg, Russia, stuffed full of the Big 4 and many lesser tax-planners - Istanbul financial district - Consulco International Ltd, focused on Cyprus and Russian tax evaders, a firm similar to Mossack Fonseca - and Ras Al Khaimah in the UAE.

It's a great circle of international tax-free friends we should all join.

The only people who won't use this facility are in Her Majesty's Revenue & Customs HMRC, whose motto is "See no Evil - Forgive the Rich - Crucify the Poor".

****************

To; Rt Hon Andrew Smith MP, Oxford East, UK
15 April 2016.

Dear Andrew

Tax-Evasion.

Thank you for your continuing activity on this issue and for the copy letter from tax minister, David Gauke.

After many years discussion with experts, I now think that the UK government has a policy to not pursue wealthy persons – individuals and companies – who evade taxes. The tax-law system seems to be riddled with ex-tax-fraud-planners from big law and audit practices, embedded in key government roles. Sadly, I am forming the view that the UK tax system is deeply corrupt.

One of my greatest concerns is the government’s determination to sell the well run and profitable (£1M per annum) Land Registry to any buyer, including private offshore funds:
“UK is again offering to sell the state-owned Land Registry - to Advent International in Luxembourg (Private Eye). This will hide all the owners and dealings of UK properties and enable crooks to claim public common land behind a wall of even greater secrecy than today; or simply to steal our houses by re-registration. How can an ordinary (homeless) person sue a secretive international offshore Hedge Fund?

Perhaps David Gauke will comment on selling Land Registry to crooks; and on the pathetic 11 cases brought by HMRC against tax-haven evaders, out of more than 200,000  tax-haven, revealed and identified accounts. The villains have taken over and are asset-stripping austerity-Britain.

Best wishes    -   Noel

************

13 April 2016.

The publication by the German newspaper, Süddeutsche Zeitung of 230,000 or more
files of secret tax-haven companies, leaked from global lawyers Mossack Fonseca, has caused a storm around the world. The leak amounts to 2 Terabytes of data - more than all previous controversial leaks added together. (Watch the video)

The team of journalists in Germany and other countries, have been working for nearly a year to convert the raw data into legible format and interrogate it for famous names. It is these famous names that the media has chosen to publish first; so we learn that President Putin has a musical friend, a cellist, who has suddenly and inexplicably been showered with hundreds of millions of dollars. Is it Putin's cash? And we learn that British PM, David Cameron's father ran a substantial offshore investment fund for 30 years, which has never paid a penny tax to Britain - which is not very politically correct, at a time when all Britons are mired and miserable deep in austerity - and told that the nation is bust. Dozens of trusted leaders have hidden millions and billions of their fellow citizens' money in the tax-havens. We are all deeply shocked, distressed and terribly excited. 

This cornucopia of wealth, obviously not needed by the "beneficial owners" (as opposed to the false owners hired to shield the loot from prying eyes), has been languishing in the world's 74 known and some unknown tax-havens and steadily increasing, since Thatcher and Reagan bestrode the globe - and gave license to all the mediocre parasites on earth to steal as much as they could and become gloriously "filthy rich"; without paying a penny of tax back to the source countries - where the wealth was generated. We - The People - are rightly curious to know how they've shipped the money offshore, past zealous keen eyed auditors and alert bankers - and how we are going to get it all back.

Russia has leapt to Putin's defense, saying there is nothing new in these scurrilous rumors and anyway he didn't do it. Britain has leapt to Cameron's defense, saying that his family finances are "A private matter" that we impertinent tax-paying peasants have no right to question. And anyway, his father died some years ago. The BBC repeat on the hour every hour, tales of tortured mistreated hunted heroic migrants who HAVE to hide their identities and last few pitiful belongings from wicked dictators and secret police - in, of course, well hidden and protected tax-haven companies in well heeled tropical paradises; whose transactions are, of course, "all completely legal" ...and nothing whatsoever to do with tax evasion, avoidance or minimization. Or about cheating the rest of the poor saps at home who do pay tax.

One of the main investigators is the International Consortium of Investigative Journalists, ICIJ, who are shining bright light into dark corners - they rely on our donations to keep going. Give generously. Another is The Guardian newspaper. More on this later. 
  
This unravelling and analyses of 40 years of villains burying loot on remote treasure islands - will run and run. Watch this page.
*************

TAX-PLANNERS ALSO GO TO PRISON - Which bunk do you prefer Sir? Upper or lower?:
To John:

Yes - Private Eye has been pointing the finger at the Guardian Group for years. It is breathtaking hypocrisy. But real offshore tax-evasion is still a minority crime – for the bravest and boldest. The Panama Papers is the 3rd huge leak of names and accounts. Tax investigators will act, I think; even HMRC.

Blairmore Investment Trust (Dave’s dad) would only be illicit if management was in London – not overseas. They seem to have gone to great lengths to make that argument. In a tax court, under cross-examination -  I guess the false Trustees/ Directors /Managers would be quickly unmasked as fakes. But that is unlikely to happen.

This was my special area - back in the days of McVeigh Hodson Blackstone Franks. I still do a few cases. I was asked last week for an article on what happens to rogue tax-planning lawyers and accountants:

Noel
**************

9 April 2016. Taxing Times For Lawyers.


Here is my first draft. I haven’t investigated the Professional Indemnity Insurance issue as (1) very little is published about claims (2) claims can and do take years (3) each insurance policy will differ (4) I’ve already written 1,800 words.

Please say if this is the type of article you want, Do edit it. And do share it.

Best wishes  - Noel

Noel Hodson - Director
Tax Reconciliations, Oxford UK,
Tel +44 1865 (0)760994 Mobile 07713 681216
**************

7 April 2016. Tax-planners’ risks – text for Lawyers and Accountants.

The Panama Papers, 11.4 million pages, copied from about 200,000 client files of international company formation lawyers Mossack Fonseca , detailing their clients’ offshore companies real  beneficial owners, are being published globally.  The data was purchased by German newspaper  Suddeutsche Zeitung for $1.4 million (Bloomberg) . Among the previously anonymous clients are many well known figures from politics, business, sport and entertainment.  The global media (April 2016) are making it front page, headline news.  The UK Guardian newspaper is helping to analyse and is publishing the data.

The data, from 1977 to 2015, amounts to 2.6 terabytes, or 2.6 trillion bytes of digital information (2.6  followed by 11 zeros), which is equivalent to ten new 250GB laptops, completely full. It is an enormous amount of confidential data – far bigger than all previous leaks added together.

The clients will be both alarmed and annoyed.  Their homeland tax-collectors will check the clients’ tax returns against this information. Many are companies formed in Panama, where Mossack Fonseca are based, and registered in tax havens, including The British Virgin Isles, Cayman, Bermuda, Channel  Isles, London and many more of the 82 tax-havens.

The International Consortium of Investigative Journalists, ICIJ, calculate that Mossack Fonseca have formed about a quarter of the world’s tax-haven companies and Trusts. as “tax vehicles”; implying 920,000 globally. This is a low estimate of companies formed since 1977, but many have not traded, set-up for transactions which didn’t happen. One million is a fair guesstimate – between 82 tax-havens, implies only 12,000 active companies each. 

The assets held in tax-vehicles was estimated, in 2012, by Wall Street, McKinsey economist James Henry as $32 trillion, (80 million jobs for 10 years).  A 2007 OECD report said $21 trillion. Most of these assets, mostly cash, have been transferred tax-free from major OECD and emerging economies, via international banks.  Assets from OECD based companies are transferred by self-invoicing (not arms-length as required by law). Creating self-invoices is usually false-accounting – a criminal offence.

The total  Capital-Flight grows by $1 trillion per annum, which is 1/60th or 1.6% of the annual global gross domestic product GGDP. Some 98.4% of GGDP, of our world-work-value, remains in the source nations – the $1 trillion cash is the liquidity from GGDP; which explains austerity and quantitative easing to top up liquidity in wealthy regions. ( see Money Wars Slide 11).

Thus tax-evasion is damaging , and of interest to governments, but is a minority activity. Most executives, businesses, lawyers and accountants are not involved in this global crime. Beware of those who are – and Sup with a Long Spoon.  Clients might not tell you the truth.

Many top tax-planners have become so habituated since 1980 to their dark arts that they have lost sight of the criminality. Naive auditors and tax-compliance clerks observe high-flying senior partners advising on the creation of self-invoicing and assume “it is all perfectly legal”. It is not. In McVeigh Hodson Blackstone Franks tax dept (1970-80), the questions we asked were “…has anyone been advised to hide their identity?” and “…does this mean two sets of company books?”  Most tax-haven companies fail these tests; indicating criminal False Accounting, Fraud, Fraudulent Conspiracy, and Wire Fraud, which carry long prison sentences. 
THE TAXMAN COMETH – AVOIDING PRISON - A barrister interviewing a confident offshore, but London resident, client and his clever accountant, cautioned them with “You won’t feel so bullish when you are clutching the bar at the Old Bailey” adding “…which prison bunk do you prefer Sir – upper or lower?”

Advisors should focus on the homeland or source nations’ laws – the tax-haven’s national laws are irrelevant. It is not the tax-havens that are losing capital and tax revenues. The majority of experts who insist that “it is of course completely legal” often recite the laws of Jersey or Liechtenstein or Andorra or Malta or Delaware or Luxembourg etc. It is the laws of your client’s country of residence which apply – that is where the assets and profits are generated and is the region which imposes penalties.

The UK tax-collectors HMRC are usually satisfied to collect the tax, compound interest and penalties (usually being 100% of the hidden assets); the UK only takes criminal proceedings where the client is a persistent, repeat tax-evader. HMRC hardly ever act against advisors – even those who have written false invoices. Famous cases include champion jockey Lester Piggot, comedian Ken Dodd, Disc Jockey Chris Moyles and 450 others, but in the past decade HMRC have only brought 11 (eleven) cases against more than 100,000 UK sourced tax-haven companies, citing lack of resources.  This has given planners a false-sense of immunity; but HMRC can re-open assessments for past years – and issue protective assessments (in essence saying “you prove it is tax-paid”).

The IRS in America is far less polite and more immediate. There is a current case (Apr 2016) against a retired tax-court judge - Kroupa. The IRS publish lists of cases, presumably to discourage others.

I SAY AVOIDANCE - YOU SAY EVASION  In this US case, a firm of Chicago lawyers, Jenkens & Gilchrist, advised 931 clients on a tax-avoidance scheme that the court found to be tax-evasion and criminal. On a conspiracy charge the lawyers got up to 8 years prison and $190 million in fines. Presumably the clients all faced back-duty tax cases which usually take 100% of the “sheltered” money.

DAVID MILLS - ITALY  The Italian courts take decades to process a tax cases and rarely recover any assets. The defendants might die of old age before judgement is made. But, exceptionally in the Berlusconi and Parmalat case the Italians arrested UK lawyer David Mills who was charged with money-laundering and tax fraud and sentenced to jail. He later successfully appealed and remarried his wife, UK Minister Tessa Jowell. But few lawyers are that well connected. In the process Mills confessed to HMRC of evading tax on $600,000 paid by Berlusconi via a web of tax-haven companies. Presumably even HMRC have now taxed the $600K – or have they?

Grant Thornton, UK, the auditors of Parmalat, the alleged source of the laundered money, were sacked and sued by Parmalat investors. The case re-surfaced in June 2014 in the US, again putting the auditors at risk of jail and very large fines.

SPAIN – ROYAL DUES Princess Cristina of Spain has not been charged with embezzlement, but her husband has. The Princess (Infanta) is charged with tax-evasion on her income from the embezzled funds.  She faces an 8 year sentence. The case is proceeding (April 2016).

USA - ENRON and Arthur Andersen  (now Accenture) - The largest corporate collapse to date. The auditors were banned. This case had all the “complex” signals of tax-evasion. At the time, October 2001, Arthur Andersen was the world’s largest auditor and tax-planner.

It is probable that they contrived then audited the maze of on-shore and offshore “vehicles” for tax-evasion purposes, which were also used by the internal accountants and directors to steal  $40 to $60 billon dollars.

“All told, sixteen people pleaded guilty for crimes committed at the company, and five others, including four former Merrill Lynch employees, were found guilty. Eight former Enron executives testified—the main witness being Fastow—against Lay and Skilling, his former bosses.[127] Another was Kenneth Rice, the former chief of Enron Corp.'s high-speed Internet unit, who cooperated and whose testimony helped convict Skilling and Lay. In June 2007, he received a 27-month sentence.[145]
Michael W. Krautz, a former Enron accountant, was among the accused who was acquitted[146] of charges related to the scandal. Represented by Barry Pollack,[147]Krautz was acquitted of federal criminal fraud charges after a month-long jury trial.”
Exactly one year after Enron began its free fall into bankruptcy, auditor Arthur Andersen LLP received today the maximum sentence of five years probation and a $500,000 fine for altering evidence of its work with the disgraced energy giant.
U.S. District Judge Melinda Harmon sided with prosecutors and the Securities and Exchange Commission, who wanted her to make an example of the firm.
 Germany – Tax Evasion  – “ Attorneys or C.P.A.s may be accused by the C.I.D. (“Steuerfahndung”) of having colluded with the accused taxpayer thereby disqualifying them from further defending their clients“  USA based advice. This implies that advisors will be criminalised alongside clients.

Mr Becker had admitted making a mistake and has paid 3m euros in back taxes and interest. "Putting Becker in jail would be senseless and unfathomable," his defence lawyer Klaus Volk had argued. But the prosecution said Mr Becker had waited too long to make his confession. 
A German court convicted Bayern Munich president Uli Hoeness of tax evasion on Thursday and sentenced the man who turned the football club into one of the world's most successful sports dynasties to 3.5 years in jail.
Some 55,000 tax evaders have turned themselves in over the last four years and paid a total of about 3.5 billion euros in back taxes, according to the taxpayers association. The number of voluntary disclosures rose four-fold in 2013 from 2012.

Aug 2011 German tax dodgers with money hidden in Swiss banks can sleep easy tonight. For the German government this week initialled a beggar-thy-neighbour deal that undermines years of diplomatic work to penetrate Switzerland's globally corrosive banking secrecy. The agreement, which is due to be signed by both governments over the next few weeks, sees Germany accepting a paltry $2.8bn upfront from the Swiss banks said to hold some $276bn of Germans' undeclared wealth.

NO HIDING PLACE - The Panama Papers, of 200,000+ clients, leading to many well known tax-havens where many famous and infamous people and companies are hiding tax-free assets, will oblige even the most reluctant governments to act and introduce tax-justice. Few OECD regions, apart from the USA, jail accountants, lawyers, bankers and tax-planners alongside clients who they have advised, enabled and assisted to evade tax. But, this latest, largest “leak” which again indicates and confirms the vast amount of global hidden and frozen assets, when many OECD governments are imposing austerity, pleading poverty and borrowing heavily from The International Free Markets, will, I think, at last tip the political balance and trigger tens of thousands of tax investigations, under existing laws, reaching back to assets hidden since 1977 and coming forward to 2016.

I consider it highly likely that the spy agencies of OECD countries have already obtained all past and present data from all tax-haven accounts and transactions. 

For repatriation purposes, as in America, and Italy, other regions will probably also arrest the most persistent tax-evasion advisors.

GUILTY UNTIL PROVEN INNOCENT - The most efficient way to proceed, as happened with the Cyprus tax-bank accounts in 2013, is for governments to confiscate the tax-haven assets of their resident citizens (USA taxes its citizens wherever they reside) and oblige beneficial owners to demonstrate the offshore assets are tax-paid. Nations that are slow to act will find some or all of the tax-haven assets which ought to be repatriated to their country, taken by faster acting and more determined legislations.

Noel Hodson, Tax Reconciliations, Oxford. 7 Apr 2016.

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THE UK MEDIA REPORT THAT ONLY RUSSIA & CHINA USE TAX HAVENS. 
WHAT BULLSHIT.
5 Apr 2016.

Lee,

THE UK MEDIA COVER-UP OF THE PANAMA PAPERS.

Well said (below). Spot on. But I think the ICIJ are a genuine force for good.

As you say, China and Russia are bit players in offshore skulduggery. Most of our VIPs have illicit offshore accounts, “Which,” as the BBC parrots 20 times a day, “is of course all completely legal”  unless you live in the UK/USA/OECD and pretend the offshore assets are controlled by offshore false-directors /trustees  who generate false invoices (self-invoicing) to reduce your UK income – in which case you are guilty of fraudulent conspiracy /wire fraud – which jailed Al Capone and others for a long time. Where is the UK's bold champion of the people, Jeremy Corbyn, when you need him?

As an aging tax-advisor, I wrote to a few surviving lawyer colleagues:

“4 April 2016 - The International Consortium of Investigative Journalists ICIJ spilt the beans. Who copied all Mossack Fonseca’s 230,000 client files is a mystery. They will name someone, a hapless soul in Panama, but my guess is that all such data is being mined by GCHQ, MI5 CIA Homeland Security etc – who might be spying on their computers – to get the grounds to recover about $16 trillion for the US Treasury (and $3T for us). That’s a lorra lorra loot – even for America. $16,000,000,000,000 (12 noughts) – it would pay off all their government deficits.

Interesting Times  - Noel”
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…And …..Subject: Interesting taxing times - Sup with a long spoon.

Hi - with your lawyer's hat on:

The most cited total of offshore tax-haven assets is $32 trillion, calculated by McKinsey Wall St. economist James Henry http://cogentbenger.com/canadiantaxdodge/interviews/james-henry/
.
My estimate of how much of the $32T is from the UK economy is $3 trillion (about 8 million jobs for 10 years). From accountancy and auditing experience I guess that 99% of it has been transferred from OECD economies using (illicit) self-invoicing, however "complex" and tortuous the route. The devil is as ever in the detail and it is in these transactions, claiming tax-deductibility in the source nations, that fraudulent conspiracy has occurred (in America also "wire fraud"). The offshore total is calculated by OECD Paris to be growing by $1 trillion a year - which is approx the entire annual surplus liquidity from all mankind's work - the global GDP. http://www.noelhodson.com/Money-Wars-2012-V5SHORT.pdf

I have long thought that the hidden amounts are so large and are mostly criminal acts that major governments would set out to recover the assets.

People at most risk of jail are officers and advisors who have signed Balance Sheets and Tax Return Declarations in the OECD nations, or who have paid dummy officers to sign for them ("a director by whatever name called"), and the corporate treasurers who have authorised or personally effected the transborder transfers of assets - without full disclosure.

The Mossack Fonseca stolen or leaked records date from 1977. From which date the Beneficial Owners' income on the assets will not have been declared. Far too late now to put up a credible "I didn't know" or "the dog ate my homework, Patent Box and tax-returns" defence. It is said that the 11.3M pages are 2/3rds of Mossack's records - so there is more (3.5M papers) to come - and the ICIJ say that Mossack is the 4th largest of such offshore enablers - so the other 3 big-firms amount to another 45M documents - across all 72 tax-havens.

Advising "how to move back on-shore" with a clean bill of health, I caution clients to assume that the ICIJ and other investigators (and thus local tax-collectors) also hold leaked records from the Big-4 accountants (e.g. PWC LuxLeaks) - and from banks (e.g. HSBC Zurich etc). The past 10 years' leaks attest to this supposition. Early tax settlement is vital to minimise costs.

A crumb of comfort for clients who paid for "the best of" advice "which is of course all completely legal" (bullshit), in writing, from the Big4 or major law firms, is that the clients might be successful in suing the advisors for faulty tax-panning; in turn the tax-planners will recover the costs from Lloyds of London under their PI policies. Self-invoicing has never been legal in OECD tax-law, however cunningly disguised.

Interesting times.

Noel



Noel Hodson - Director
Tax Reconciliations, Oxford UK,
From Tax-Havens to Safe Havens
Tel +44 1865 (0)760994 Mobile 07713 681216







From: Lee Chadwick [mailto:leechadwick99@btinternet.com

Sent: 4 April, 2016 11:18 PM



Subject: Whoever leaked the Mossack Fonseca papers

Corporate Media Gatekeepers Protect Western 1% From Panama Leak  - By Craig Murray 410  

Whoever leaked the Mossack Fonseca papers appears motivated by a genuine desire to expose the system that enables the ultra wealthy to hide their massive stashes, often corruptly obtained and all involved in tax avoidance. These Panamanian lawyers hide the wealth of a significant proportion of the 1%, and the massive leak of their documents ought to be a wonderful thing.
Unfortunately the leaker has made the dreadful mistake of turning to the western corporate media to publicise the results. In consequence the first major story, published today by the Guardian, is all about Vladimir Putin and a cellist on the fiddle. As it happens I believe the story and have no doubt Putin is bent.
But why focus on Russia? Russian wealth is only a tiny minority of the money hidden away with the aid of Mossack Fonseca. In fact, it soon becomes obvious that the selective reporting is going to stink.
The Suddeutsche Zeitung, which received the leak, gives a detailed explanation of the methodology the corporate media used to search the files. The main search they have done is for names associated with breaking UN sanctions regimes. The Guardian reports this too and helpfully lists those countries as Zimbabwe, North Korea, Russia and Syria. The filtering of this Mossack Fonseca information by the corporate media follows a direct western governmental agenda. There is no mention at all of use of Mossack Fonseca by massive western corporations or western billionaires – the main customers. And the Guardian is quick to reassure that “much of the leaked material will remain private.”
What do you expect? The leak is being managed by the grandly but laughably named “International Consortium of Investigative Journalists”, which is funded and organised entirely by the USA’s Center for Public Integrity. Their funders include
Ford Foundation
Carnegie Endowment
Rockefeller Family Fund
W K Kellogg Foundation
Open Society Foundation (Soros)
among many others. Do not expect a genuine expose of western capitalism. The dirty secrets of western corporations will remain unpublished.
Expect hits at Russia, Iran and Syria and some tiny “balancing” western country like Iceland. A superannuated UK peer or two will be sacrificed – someone already with dementia.
The corporate media – the Guardian and BBC in the UK – have exclusive access to the database which you and I cannot see. They are protecting themselves from even seeing western corporations’ sensitive information by only looking at those documents which are brought up by specific searches such as UN sanctions busters. Never forget the Guardian smashed its copies of the Snowden files on the instruction of MI6.
What if they did Mossack Fonseca database searches on the owners of all the corporate media and their companies, and all the editors and senior corporate media journalists? What if they did Mossack Fonseca searches on all the most senior people at the BBC? What if they did Mossack Fonseca searches on every donor to the Center for Public Integrity and their companies?
What if they did Mossack Fonseca searches on every listed company in the western stock exchanges, and on every western millionaire they could trace?
That would be much more interesting. I know Russia and China are corrupt, you don’t have to tell me that. What if you look at things that we might, here in the west, be able to rise up and do something about?

And what if you corporate lapdogs let the people see the actual data?

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