After 2016 promises to change offshore tax dodges, New Zealand banks report profits to rise

In “Probe Nets Dozens of New Zealand People in Global Broker Island Investigation,” Reuters tells the story of 36-year-old Santanu Persaud, a Canadian who first moved to New Zealand 20 years ago and set…

After 2016 promises to change offshore tax dodges, New Zealand banks report profits to rise

In “Probe Nets Dozens of New Zealand People in Global Broker Island Investigation,” Reuters tells the story of 36-year-old Santanu Persaud, a Canadian who first moved to New Zealand 20 years ago and set up offshore trusts for an aristocratic Indian family. During this time, he created more than 260 funds that held money belonging to more than 2,000 people. He eventually moved to India, where in 2013 he ran afoul of the country’s tax authorities and was charged with “possible conspiracy to defraud India of revenue.” His case isn’t unique, however: a recent report on The Guardian’s Global Witness website, “Treaty and Troubles: How Canada is turning a blind eye to misdeeds by wealthy rich people,” notes that “Canada’s conservative governments have set up a platform for offshore business that generates $30bn a year in revenues for their country.” While Prime Minister Justin Trudeau promised that his administration would open up to international scrutiny of tax havens in late 2016 — “Canada will not have tax havens anymore” — Reuters found that almost immediately after the Trudeau government pledged to end tax dodges, at least six major offshore industries based in New Zealand saw earnings increase and overall offshore revenue continued to increase. Meanwhile, Trudeau himself was criticized by late-night host Jimmy Kimmel earlier this year for having allegedly solicited a $50,000 donation from a Kremlin-connected bank — though Trudeau denied the claim, noting that it was an “unauthorized leak” and that “it doesn’t matter what I did, I don’t need that money.”

Read the full story at Reuters.

Related

Thirty five companies in 29 jurisdictions have been linked to the Panama Papers

Leave a Comment