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Saturday, April 16, 2005

Defrauding the IRS

A seriously unsavoury aspect of the Transpower Cayman Scam which so far seems to have escaped the attention of commentators is the fact that our Gummint has conspired with an unidentified US corporation to defraud the US Revenue. The same Gummint which crows about its bloated surplus while criticising the US deficit.

A bit rich, don't you think, when those slinging shit themselves are contributing to the very deficit they criticise? It appears Transpower is not the only culprit. The net effect is that ordinary people in the US have to pay more tax to make up for it. Oh but that's alright, said the Smarmy Army GHQ. It doesn't matter, they are Americans.

I hope John Key makes hay out of this and I hope Condoleezza rips the other arm off our Kindalloozza PM.

Let's hear it from Russell, Jordan, Tristan and Co. Give us your considered opinion on the ethical questions here.

Posted by Adolf Fiinkensein | 4/16/2005 12:14:00 pm

3 Comments:

Blogger Lucyna said...

It was on radio left wing yesterday with Linda talking to some guy from transpower. At least I think it was transpower, most of the attention was on the Caimen Islands as a tax haven.

From the CIA Factbook:
With no direct taxation, the islands are a thriving offshore financial center. More than 40,000 companies were registered in the Cayman Islands as of 1998, including almost 600 banks and trust companies; banking assets exceed $500 billion. A stock exchange was opened in 1997.

For those not in the know, there are a number of a tax havens in the world : Burmuda, The Isle Of Man, Vanuatu. What many multinationals do is incorporate their head office in one of these tax havens, and then they don't ever have to pay tax on any money thing sent back to head office. I think Telstra in Oz did the same thing. Multinationals can get away with it because they trade in many countries. If a small business tried to do it just for trade in one country, it would be considered transfer pricing.

4/16/2005 02:41:00 pm  
Blogger Antarctic Lemur said...

How about we start a game - guessing which Labour backbencher calls himself 'johnnie' on DPF's blog.

johnnie recently claimed Transpower did the same thing under National in the 90's.

4/16/2005 03:14:00 pm  
Blogger ZenTiger said...

The folks on Linda's show were likely these guys:

"But cross-border leasing has been criticised by Canterbury University accounting academics Alan Robb and Sue Newberry, who said it was shonky and, in the case of the Transpower deal, had put ownership of the grid at risk."

Hmm, Labour back-bencher with a big mouth? Tamihere? Na, there's obviously a few more in training.

4/16/2005 03:53:00 pm  

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