Is the new EU Anti Tax Avoidance Directive the reason David Cameron decided to have the EU referendum?
In 2012, David Cameron declared he is prepared to consider the EU referendum “only when the time is right” and his momentous announcements for the EU referendum happen to coincide with critical milestones in the development of the new EU Anti Tax Avoidance Directive!
WHAT LED TO THE NEW EU ANTI TAX AVOIDANCE DIRECTIVE AND THEN THE EU REFERENDUM?
After the EU decided to bail out Greece from bankruptcy, the EURO exchange rate slumped, threatening the economic stability of the Eurozone.
In October 2010, Christine Lagarde, the French Finance Minister at the time, issued to the Greek authorities a spreadsheet containing roughly 2,000 potential tax evaders with undeclared accounts at Swiss HSBC bank’s Geneva branch, which accounted for an estimated €26 – €29 billion of the annual lost tax revenues.
The sheer scale of tax evasion and the inability of Greek authorities to end the practices prompted Brussels to take concrete action and in 2011, Nicolas Sarkozy issued a stark warning that tax havens would no longer be tolerated and countries that continue to protect them will be outcast from the developed economies:
“We don’t want any more tax havens. Our message is clear, countries that remain tax havens … will be shunned by the international community”
WHEN DID DAVID CAMERON CALL THE EU REFERENDUM?
In 2012, David Cameron declared he is prepared to consider the EU referendum, saying that it will happen “only when the time is right”!
His momentous announcements on the EU referendum coincide with the key milestones in the development of the new EU Anti Tax Avoidance Directive, whereas:
• In 2013, the European Commission produced their action plan to clamp down on tax avoidance, and within a month, Mr Cameron announced that he changed his mind, stating that he favours an EU referendum and ”pushing to exempt Europe’s smallest entrepreneurial companies from more EU Directives.”
• In 2016, the European Commission produced the first draft of the EU Anti Tax Avoidance Directive and within a month, Mr Cameron announced the date for the EU referendum.
WHY DID DAVID CAMERON’S REMAIN CAMPAIGN FAIL AT THE EU REFERENDUM?
After announcing the date for the EU referendum, Mr Cameron campaigned for the UK to remain in the EU.
However, one can’t help wondering why Mr Cameron didn’t inform the British voters that by remaining in the EU, the British government would have to implement the new EU Anti Tax Avoidance Directive?
If he decided to inform the British voters that the EU Anti Tax Avoidance Directive would end austerity measures and save the NHS, then surely a majority of British voters would have voted to remain.
But, then again the British voters were not supposed to know about EU Anti Tax Avoidance Directive, because Mr Cameron, Brexiteers, the right-wing press and even the BBC declined to publicly discuss the implications of the EU Anti Tax Avoidance Directive in the UK.
Unfortunately, Mr Cameron was fond of wealthy tax-dodging individuals, which is why in 2013, he wrote to the then-president of the European Council, Herman Van Rompuy requesting from him not to drag British offshore trusts into an EU-wide crackdown on tax avoidance.
In 2016, Panama Papers revealed that David Cameron inherited his £2.000.000 worth North Kensington house from his father, Ian Cameron a long term tax-dodger, who expanded his wealth by running an offshore fund in the Bahamas.
WHO SUPPORTED LEAVE CAMPAIGN?
Tax-dodgers are greedy individuals who couldn’t care less if the British people are being subjected to harsh austerity measures or about to lose their NHS
Yet, ahead of the EU referendum, they became extraordinarily patriotic and generous by donating vast amounts of money to the Leave camp.
According to the Business Insider UK, the long list of prominent individuals who donated generous amounts to the Leave campaign, and implicated in tax-avoiding practices, include:
• Lord Farmer who donated £300,000;
• Peter Cruddas who donated £350,000;
• Lord Bamford who donated £673,000;
• Crispin Odey who donated £873,288;
• Lord Edmiston who donated £1,000,000;
• Peter Hargreaves who donated £3,200,000;
• Arron Banks who donated £8,106, 375.
WHERE DID THE EU REFERENDUM TAKE PLACE?
According to the Guardian, the EU referendum took place in the UK, whose tax authorities, in 2015, failed to collect an estimated £16,000,000,000 in taxes, out of which £12,000,000,000 were lost due to tax evasion or avoidance.
Tax-avoiding practices are legal in the UK, but the EU Anti Tax Avoidance Directive, would force the companies to pay the exit charge whenever they removed their capital gains from the EU member state to another low tax jurisdiction.
The British overseas territories are part of the UK, but not part of the EU, which is why capital gains will be subjected to an “Exit Tax” before they are relocated to another tax jurisdiction outside the EU, such as British tax havens!
The most prominent Brexiteer, Nigel Farage also confirmed that if immplemented, the EU Anti Tax Avoidance Directive would prevent British tax-dodgers from shifting assets into British tax havens without paying the “Exit Tax”!
When the EU Parliament discussed the EU Anti Tax Avoidance Directive in 2013, Mr Farage accused the EU Commission of attempting to “drive a wedge between the United Kingdom and the Channel Islands, the Isle of Man and the Caymans”, adding:
“There’s a great degree of unity here this morning, a common enemy: rich people, successful companies evading tax, which of course is a problem, avoiding tax, which is not illegal, but it gives this whole chamber this morning a high moral tone and, as Mr Barrasso says, it’s all about the perception of fairness.”
HOW THE BRITISH ELITE MANAGED TO GET THEIR DESIRED OUTCOME AT THE EU REFERENDUM?
It seems that the British elite is fond of George Orwell’s “1984”, so they turned it into reality, whereby the invisible decision-makers, “The Party” turned our democracies into “Oceania” and MSM into “The Thought Police”, whose role is to inflict fear upon the British people.
Every time tax-free assets of the wealthy elite are threatened by the EU or British politicians, “The Thought Police”, also known as the right-wing media, infects the British people with the fear virus about an imaginary threat from subjects or individuals that are keen to deliver equality and social cohesion in the UK.
Prominent pro-Brexit newspapers are owned by individuals who avoid paying tax in the UK, such as:
The owner of the Sun newspaper, Rupert Murdoch who avoided paying his taxes by setting up his companies in the British Virgin Islands and the Cayman Islands.
The owners of the Telegraph newspaper, David and Frederick Barclay who avoided paying their taxes by registering as residents of Sark island, located in the Channel Island tax haven.
The owner of the Daily Mail newspaper, Lord Rothermere who avoided paying his taxes by inheriting the Daily Mail through an offshore trust set up in the Channel Island tax haven and is registered as “non-dom”.
The owner of the Express newspaper, Richard Desmond who avoided paying his taxes by setting up a company in a Luxembourg tax haven.
In 1997, John Major was keen to collect land taxes from wealthy noble landlords and the right-wing press rather the Conservatives, their traditional party of choice, they endorsed the Labour party.
Twenty years later, Jeremy Corbyn promised to bring an end to tax-dodging practices from the wealthy elite, and despite the increase in the Labour membership, the right-wing press drove the British public to vote for prolonged tax-dodging, austerity measures and food banks.
In 2017, Jeremy Corbyn accused the Conservatives for using Brexit to turn our country into a tax haven:
“Britain is going to change as a result of leaving the European Union. The question is how. The Conservatives want to use Brexit to turn our country into a low wage tax haven.”
Tax-dodgers are greedy crooks who will eventually receive long imprisonment for robbing their nation, but in the UK, most of them are rewarded with noble titles, such as Lord, Lady, Sir or Dame.
Post updated on 16 May 2020
Recently, the BBC’s fact check team revealed that the new measures included in the EU Anti Tax Avoidance Directive are already transposed into the British Law, claiming that:
“… it’s hard to find anything happening in January 2020 to these rules that looks significant enough to influence the speed at which some people might want to leave the EU.”
However, as this article explains, the BBC fails to mention that the fundamental difference between the British and the EU law lies in the territorial and institutional jurisdictions and as this article explains, they will have enormous implications for wealthy British tax-dodgers.
Outside the EU tax-avoiding offences would be trialled at British Courts, which have done nothing to prosecute wealthy tax-dodgers who were exposed by the Panama Papers.
Whereas if we were to remain in the EU, tax-avoiding offences would be trialled at the European Court of Justice (ECJ) whose jurisdiction is strongly opposed by prominent Brexiteers.