UK Firms Help Rich Dodge Millions In Taxes

Firms in the United Kingdom have been helping millionaires avoid millions in taxes using complex tax evasion schemes.

With the BBC Panorama program on Sunday, it is has become obvious how easy the rich can trick Her Majesties Revenue and Customs out of billions. HM Revenue and Customs claim that tax evasion costs the tax payer on average £4 billion a year.

This is just another example in recent times, of the rich selfishly passing their burdens onto the working class.

The structure proposed by James Turner, of Turner Little, a corporate service provider, used nominee directors to help keep the clients name from being on the company paperwork. These nominee directors can be lawfully appointed to run companies on behalf of others, but they would be running nothing. In other words, it would be a web of lies and deception.

James Turner, told the undercover reporter: “They wont even know that they are a director, they just get paid,” he also told the reporter that adding the directors signature could be done by using a stamp. Corporate service providers, are legal companies that assist people in creating a business, both in the UK, and abroad, but these companies have been helping set up these fake companies, just to help the upper classes hide their money from HM Revenue and customs. If a business is set up like this, then it is no longer legal, it is a criminal offence.

In spite of this, Jack Turner denies allegations of criminal misconduct, and has stated that Turner Little will conduct an internal investigation, and if it is appropriate, it will take action.

In a statement, HM Revenue and Customs, which regulates all of the 2467 company service providers in the UK, claimed that most of the firms have nothing to do with illegal or criminal activity. However, it did confirm that it has never prosecuted a single corporate service provider for breaching money laundering regulations.

In recent times of austerity, cuts have hit everybody hard. From the student, with the rising university fees, to the pensioner, having their monthly amount cut. Everybody, or so it seems, but the rich, who have found yet another way to steal money once again, costing the taxpayer £4 billion a year.

The Tory government is supported and funded by the banks and big business and media so they would only regulate tax evasion and avoidance if we put enormous pressure on them – they don’t want to bite that hand that feeds them.

We need to tax the rich and use the money to pay for education, healthcare and jobs, but we also would need to stop these companies from moving their money abroad to avoid tax – we would need to take it off them and say that they are welcome to move but their  (our) wealth stays here.

Stop the English Baccalaureate

 “Time to tackle the dumbing down” is the new slogan promoting the Tories’ latest attack on education. The introduction of the English Baccalaureate to replace GCSEs will drag education back to a two-tier system – dividing students by class and ‘intelligence’.

Gove claims a new system is needed because currently too many students are getting too high grades and achievement levels are increasing each year. He blames exam boards competing and giving schools too much information about what will be on exam papers and students not completing their own coursework.

If that’s true, why not nationalise the exam boards into one single board under the control of students and education workers – those best placed to measure educational achievement.

And if competition amongst exam boards has been such a disaster how is allowing competition amongst schools going to solve the problem?

The reality is that the Tories have a plan for education – and it doesn’t have students’ best interests at heart. The scrapping of EMA, the reform of teachers’ pensions and the introduction of private schools funded by the taxpayer (academies, free schools) all serve to increase the control of British bosses over our education.

They want to choose what we learn, how we learn, and indoctrinate us with the attitudes and values that suit them. They are making education for profit, not knowledge.

The Tories have already shown their contempt for young people, when they decided to fail tens of thousands of GCSE students this summer so they could look tough on ‘grade inflation’.

Rather  than the current module-based exams with some being taken at the end of year 10 and some at the end of year 11, all exams would be taken at the end of the final year.

This prevents students from being able to take resits and also massively increases the pressure during exams season at the end of year 11. Not only will all the exams been taken at once but unlike in GCSES where in some subjects a percentage of the final grade is from coursework, particularly in more vocational subjects such as health and social care, the EBC will be 100% exams.

One key area the EBC will affect is those with dyslexia or other learning difficulties. The British Dyslexia Association said an emphasis on exams rather than coursework and the breaking of two-year studies into smaller units and the extra stress associated with once-and-for-all exams could disadvantage candidates with some learning difficulties. The changes would also damage their chances of going on to higher education.

With all this change going to happen you’d assume the English Baccalaureate would go through some serious piloting before being introduced into schools permanently, but oh no it is likely to go ahead initially in English, Maths and Science from 2015 without any conventional pre-trials. It seems that, Ofqual, the exams regulator, has quietly abandoned a promise to ensure that all major exam reforms are piloted in advance. A spokesman simply says:  ”Due to concerns that pilots can stifle innovation and the length of time required for meaningful pilots to be undertaken, [the piloting principles] were not taken forward.”

It seems that young people’s education simply isn’t important enough to spend time getting right before they’re just thrown in at the deep end.

Schools for students – not for profit

Education is one of the last areas of the economy not run in the interest of private profit. Part of the bosses’ solution to the crisis is to open up new markets to invest in. This is why the Tories are desperately rushing through new laws which give businesses the right to run schools, hospitals and public services.

But the biggest barrier to education marketisation is the students and staff themselves – those who will be funnelled through a superficial, stripped-back education industry and those who are expected to work in it.

This explains the attempt to reform pensions and break the monopoly of state education. The new pensions will make workers work longer and receive less. The introduction of academies and free schools gives bosses the ‘right’ and incentive to profit from providing education.

Privatisation, new exams, higher fees; all have the aim of gradually eroding the ability of state schools to function outside of the market. Directly by buying schools, or indirectly by influencing government policy in smoky backrooms, employers will gain extensive powers to dictate the kind of education they want working people to have.

Reform of education is a permanent task of any society. But we think if ‘reform’ means ‘improvement’ then that can only come with greater investment. This investment should be under the control of education workers and communities – those who know best what their educational needs are.

We have to be clear that these reforms are not about providing real apprenticeships, giving young people secure futures, but transforming the school system into another tool to discipline the working class. The bosses’ vision for education is one which imposes flexibility, insecurity and division as facts of life, which future generations will learn from their first day in school.

We oppose the English Baccalaureate. Exams and education should be managed by teachers, education workers and students themselves.

We are fighting for free and equal access to education for all who want it.

The November 21 demonstration and Global Education Strike give students a great opportunity to re-kindle the flames of revolt.

Our education is not for sale!

Join the Education bloc on #Oct20

The University of London Union (ULU) has called an education bloc on the Trades Union Congress (TUC) demonstration for ‘A Future That Works’ on October 20th.

The call has been supported by all the students unions in the University of London as well as the Birkbeck, Senate House, School of Oriental and African Studies (SOAS) and Institution of Education (IOE) branches of Unison, and University College London (UCL), IOE and SOAS branches of the University and College Union (UCU).

The education bloc will assemble at 11am outside the ULU building on Malet Street and form a feeder march to join the main demonstration.

ULU Vice President Daniel Cooper said: “The government’s austerity agenda affects all of us. The attacks on education form part of the wider assault on public services. Many students now work part-time or are destined for a precarious job market. On October 20th we will be marching together with the organised labour movement to send a message of defiance and opposition to the Coalition.”

Naomi Bain from Birkbeck Unison said: “I am really pleased that students are supporting this march, just as education workers will support the student march in November. We have been planning together and supporting one another’s struggles and will continue to do so.”

ENDS

Facebook event: https://www.facebook.com/events/232513776877359/

Leeds Students Protest Against London Met Deportations

Leeds Revolution took part in a protest on Friday against the threatened deportations of 2,600 students from London Metropolitan University. Fifty students from Leeds Met and Leeds University gathered outside Leeds University, displayed banners and signs saying “hands off our classmates”. Lots of passers-by signed a petition against the deportations.

The international status of the university has been revoked by the UK Border Agency so they aren’t able to issue student visas to people from outside of the EU. The 2,600 students affected have been given 60 days to find another university or get out of the country.

Photograph by Leo Garbutt

The government made this announcement on the same day as the latest immigration statistics in a clear move to look “tough” on immigration. In reality this is a Tory stunt that could ruin the lives of thousands of people. London Met has started legal action in an attempt to overturn the decision and there is a question mark over whether the university can stay afloat if it can no longer accept non-EU students who provide 15% of its revenue.

There is a huge campaign at London Met involving students and lectures – they have held protests against the government decision and the lecturers’ union UCU has called for an amnesty for the students. We in Revolution agree that UKBA should allow the students to remain at London Met and would also demand that the government reinstates the international status of London Met and doesn’t interfere in the internal affairs of a university in this way again.

We have a meeting organised at Leeds Metropolitan University on The Case Against Immigration Controls on Thursday 20th September, 6pm at the Leslie Silver Building. We have also spoken with a number of other societies about setting up a London Met defence campaign and will keep you posted.

Check out the fb event for our meeting here http://www.facebook.com/events/360981043979839/

Check out the report from Leeds Student of the protest here http://www.leedsstudent.org/2012-09-14/ls1/ls1-news/protesters-attack-tory-racism-of-london-met-deportations

Protest at Tory Party Conference

March on the Tory Party Conference

Sunday 7th October, Birmingham, time and place tbc

They’ve stolen our NHS, increased our university fees, taken our jobs and they’re not done with us yet! They’re making our parents work for longer for less pay and pensions while forcing those without a job to work for free.

They talk about reducing the deficit by cutting benefits but what about the billions that slip through the tax loopholes by the likes of Phillip Green?

That why we all, young people, trade unionists, the unemployed, students need to go to Birmingham on the 7th October to protest against the Tory Party Conference where more decisions to cut our public services and slash our benefits will be made.

We need to show this government that we won’t let them take our jobs and cut our pensions and we will fight back!

Hungry Britain: austerity drives millions to foodbanks

At least 13 million people in the UK live below the poverty line and every day people in the UK go hungry for reasons ranging from unemployment to having to pay off debts to doorstop lenders. In 2011-12 food banks fed 128,687 people nationwide which was 100% more than the previous year.

The busiest food bank in Britain is in Coventry, it is run by the Trussell Trust and it can provide people three days of good quality food such as rice, sugar, tinned meat/fish and cereals. However you can’t just turn up their and get some grub, the only people who can receive food are those that have been referred by social services, youth offending teams or the citizen’s advice bureau.

Once they’ve been referred they can only go once or twice before they are put onto programmes to address the root cause of their poverty.

43% of people who attend the food bank do so because they are on benefits but they have been cut, delayed or the money they are getting simply isn’t enough to feed them. In the first 3 months of 2012, 167,000 people had their job seekers allowance stopped for no apparent reason. When this is what they’re surviving off and it is taken away from them they have little other choice but to go to food banks and take out a crisis loan.

The other 57% are people who have jobs but still cannot afford to feed themselves. A lot of the time it is because they have borrowed money in order to pay for bills and they have to pay it back out of money they would buy food with. Most people borrow off door stop lenders who befriend them and then guilt trip them into paying the money back with a massive interest rate. It can be very difficult and embarrassing to admit you can’t afford to feed yourself and you need help, but these people have no other choice.

There are no 250 food banks with 3 more opening each week. While our welfare system is suppose to support those who can’t support themselves it is in fact making life more difficult. With benefits not paying a living wage and with the government cutting thousands of peoples everyday for no reason except to make figures go down it is no wonder that people are beginning to starve.

We say

• Jobs for all and a living wage to be paid
• Benefits to be paid at a living wage for those who are unable to work

Chilean youth resist police crackdown

Students in the Chilean capital, Santiago, have recently seen their 18 month mass movement hit by state attacks on their democratic rights.

It is mainly secondary school students protesting about a new law which would allow much stricter penalties to those on demonstrations.

The law would remove their freedom of speech and prevent them from legally protesting. It was passed in an attempt to suppress the a movement which has seen occupations, strikes and direct action in an campaign for free education in the country.

Recently students have been blockading roads and occupying public secondary schools as part of a campaign to force the government to withdraw the Hintzpeter law -  nicknamed after the country’s unpopular interior minister.

The law would replace fines with long prison sentences of up to three years for those who block traffic or occupy buildings.

It isn’t just the students who will be affected by the new law, any group from factory workers to environmentalists could risk time in jail for taking part in mass demonstrations. Without the ability to withdraw their labour power and cost the ruling money, the main weapon students have is though their self-organisation into a mass movement, acting jointly with the organisations of the working class.

The government are trying to criminalise their movement and ban the right to protest. The legislation aims to intimidate students, and follows an international trend set by the infamous Bill 78 in Quebec.  Santiago’s mayor has said that those who do not return to school by the end of this week risk having their scholarships removed.

It’s now key that students and the wider youth mobilise against this immediate attack on their democratic freedoms. To succeed with this resistance it will be necessary to draw the trade unions and working class who can use their economic and political power to defeat the government.

The US continent is engulfed in struggles of young people – from Montral to Oakland, Santiago to  Sao Paulo, the youth are resisting the attacks of an elite which is determined to sacrifice the jobs, education and future of an entire generation to pay for its mistakes.

We want to unite these struggles, drawing strength from our collective numbers and experiences; we fight for the youth of the world to defend ourselves and fight for our interests as part of an international movement against capitalism and for socialism and workers’ power.

French youth lash out against racism and unemployment

Hundreds of young people fought running battles with police in the northern French town of Amiens.

In the early hours of 14 August, police were called to disperse groups of youth, provoking a night of conflict which saw 150 police attacked with fireworks and projectiles. A school and sports centre were burned down, along with dozens of cars.

Although the ritual burning of cars and bricking cops is not unusual in the impoverished suburbs or banlieues of France’s industrial towns, it was the scale and ferocity of last night’s fighting which has made it national and even international news.

Newly elected Socialist President Francois Hollande has said security “is not a priority, but an obligation” – meaning he will deal with it no differently than Chirac did in 2005 – flooding the estates with police and the hated CRS riot squads. From September he will establish 15 ‘priority security zones’ – pouring money into tougher policing rather than investing in real jobs.

But tear gas and batons does nothing to address the underlying issues. With 50% unemployment amongst young people of Black or Arab origin, and over 20% amongst white French youth, the lack of opportunities is made worse by an intimidating police presence. Police regularly conduct sweeps of working class districts, flooding train stations and estates stopping and searching hundreds of young people at a time.

The new government came to power on a promise of ‘growing the economy’ to avoid austerity. But exactly the reverse has happened. France’s economy has flatlined, cuts have not been reversed, and French youth feel they are being made to pay for a crisis they didn’t cause.

Hollande has also failed to make a clean break with the racist policies of the last president. He has continued to round up thousands of Roma citizens, demolishing their camps and deporting them back to Eastern European countries. This is despite the fact that they are EU citizens and have every right to live in France.

Hollande is not worried about the employment or education chances for young people. He now just wants to avoid a repeat of 2005 where riots engulfed France’s major cities for more than three weeks. This is the great danger – there are now millions more youth with no future than then, millions more youth with plenty to feel angry about, and who feel they have nothing to lose by taking out their frustration on a violent and racist police force.

 

More pain for long-term unemployed

The Coalition’s latest medicine for the unemployed is a new forced-labour scheme which will see one million people who have been on JSA for longer than three years forced to work unpaid for six months or have their benefits removed.

The scheme has been named ‘support for the very long-term unemployed.’ However stripping people’s benefits from them and forcing them to work for less than £2 an hour is clearly not supportive in any way.

The government’s insistence on rolling out more and more ‘work-for-your-dole’ schemes is hardly an incentive to companies to invest in well-trained, well-paid jobs. If bosses think there’s a steady stream of jobless candidates who are forced to work for them, paid for by the taxpayer then that starts a race to the bottom.

Some companies are already using prisoners as cheap labour to reduce costs and boost profits.

In a job market with millions of unemployed and less than half a million vacancies, stripping people of their entitlement to benefits is no solution.

None of the government’s policies are about really putting a dent in the jobless figures. After all, the millions of unemployed represent a reserve army of workers that can be used to drive down wages, scab on strikes and scare people into accepting worsening pay and conditions for fear of being made unemployed.

Get rich, stay rich – spotlight on global tax havens

It seems everywhere you turn, we’re being told there’s not enough money. Not enough for schools, not enough for EMA, not enough for Housing Benefit, not enough to keep people in jobs. Where’s it gone?

In 2008-9 £1 trillion was poured into banks to rescue them from their dodgy deals and keep the bankers in the style they’ve become used to. Banks like Natwest and Halifax received hundreds of billions of pounds’ worth of taxpayers cash to keep them afloat – most of which went on paying out obscene bonuses, while tens of thousands of staff lost their jobs. To add insult to injury these banks then stepped up the rate of home repossessions to get back the money they lost gambling on the stock markets.

But this is just a drop in the ocean compared to the total amount of money stashed away by a few thousand millionaires and billionaires in the world’s tax havens.

A former chief economist and an expert on tax havens shows that at least £13trn and probably up to £20trn has been moved from scores of countries into well-known tax havens such as Switzerland and the Cayman Islands. Of course, hiding millions of pounds from the taxman isn’t as simple as bunging a bit of cash under the mattress. Dodging the complex laws requires a complicated apparatus, operated by a small army of super-paid accountants, lawyers and bank managers.

The economic crisis has seens a sharp spike in the amount of money that the rich have hidden away.

While the majority of people have been hit hard by pay cuts and the rise of inflation, private banks such as Credit Suisse in Switzerland and US investment bank Goldman Sachs, managed more than £4tn in 2010, a sharp rise from £1.5tn five years earlier.

In particular oil-rich states have seen their wealth disappear into offshore bank accounts instead of being invested at home. Since Russia’s economy was privatised in the mid-1990s more than £500 billion has been robbed by gangsters like Roman Abramovich – invested in luxury loot like 100-foot yachts and Chelsea FC.

While tens of millions of Nigerians live on less than a dollar a day, more than £196 billion has been siphoned off, following a complex route designed to evade tax laws – managed by British banks like HSBC.

Tax havens are the crucial ingredient which allow the rich to ‘legitimately’ avoid paying their fair share of tax. Far from being lawless frontier-style hideaways, tax havens are in fact mostly operated by the world’s major powers. France has Monaco and Andorra. Britain has Jersey, Guernsey, Isle of Man, British Virgin Islands, the US has the Cayman Islands and others. Switzerland has funded itself for a century by not asking questions about who hides their money in its banks – whether they are Nazi war-criminals or the brutal dictators overthrown in the Arab Spring.

So who is this elite? Well according to Credit Suisse – one of the banks who do good business keeping rich people rich – the top 0.5% of the world’s population own more than 35% of the world’s wealth.

Or to put it another way, the poorest 50% own about 1% of the world’s wealth.

At the outbreak of the crisis, world leaders pledged to ‘crack down’ on tax havens. Did they? No. And after all, why should they, when these leaders include people like David Cameron, whose personal fortune is based on his Dad’s ability to stash his money in off-shore tax havens.

And why would you trust a man to shut down tax havens, when his advisor on tax is notorious tax-dodger extraordinaire Philip Green, owner of Topshop, a man whose fortune is made in Britain by British workers, but apparently his business is all owned by his wife, who conveniently lives in… Monaco.

Tax avoidence (technically legal, but ‘morally wrong’) and tax evasion (illegal, unless you’re rich) costs the British taxman somewhere in the region of £90 billion a year. The famous debt which we’re all supposed to be tightening our belts to pay off is about £120 billion. You can do the maths even if Chancellor George Osborne can’t.

This might seem bad enough in Britain, one of the wealthiest countries in the world, which can apparently afford to let billions flood out of the country. But take the example of Greece. To believe the capitalist media you’d think all Greece’s problems stem from corruption, overpaid public-sector workers and too much sunshine. Their point seems to be that Greece has always been a poor country, and poor countries should have poor people.

Yet Greece, like every other country has it’s share of millionaires, and even billionaires – like shipping magnate Theodore Angelopoulos and his $154 million yacht. Since 2008, much of their billions flowed straight out of Greece… straight into German banks. Curious irony that Germany insists Greek workers accept the most punishing austerity in return for EU bailouts, while Greek money worth several times more than the bailouts sits in German banks, making German capitalists richer.

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