"Plenty of quite sensible suggestions are now circulating about what triggered
the worst financial crisis since 1929 and what will have to be done to avoid
future crises. They include improved regulation of rating agencies, an
approval procedure for new financial products ('financial MOT') and the
banning of off-balance-sheet special purpose companies.
At the same time, in what is apparently a completely unconnected move, the
German Federal Government has started to look for better ways of combating
tax avoidance in tax havens such as Switzerland and Liechtenstein, as well as
Panama and Singapore. In this respect, it has remained largely unremarked
that the inadequate regulation of actors on the financial markets and tax
avoidance are two sides of the same coin: for both presuppose the existence
of tax havens that, apart from low taxes, offer an environment where, to a
large extent, regulators deliberately refrain from intervening.
'The development of the current credit crisis in the financial sector would have
been impossible without offshore centres,' as the non-governmental
organisation (NGO) Tax Justice Network put it in a statement for a hearing of
the Treasury Committee of the lower house of the British parliament."
to read the 15-page pdf file article "Trillions Down the Drain" published in: Blatter fur deutsche und internationale Politic 3/2009, click on
link to www.taxjustice.net