Tax-evading business is going strong...

[RiverLover]

Credit Suisse: Big Crimes Become Big Business
1/17/15 written by Ralph Nader

In May of 2014, financial firm Credit Suisse AG pled guilty to serious criminal charges. The giant bank aided and assisted approximately 22,000 wealthy U.S. taxpayers (whose names Credit Suisse AG escaped having to send to the Justice Department for law enforcement) for over a decade in filing false income tax returns and other documents with the Internal Revenue Service (IRS).

...These elaborate illegal acts over many years are quite revealing. They show a deliberate willingness by Credit Suisse AG officials to knowingly engage in profitable activities that defrauded the United States Treasury and burdened honest taxpayers. Credit Suisse paid a $2.6 billion fine—small compared to the size of the crimes and the company’s large revenues. These crimes were yet another sordid chapter in the ever-burgeoning tax-evading business that makes its waves with wealthy Americans and massive corporate entities....

The Employee Retirement Income Security Act of 1974, or ERISA, was enacted to protect the retirement savings of retirement plan participants. The law, in theory, automatically disqualifies institutions like Credit Suisse AG who have committed serious crimes or pled guilty to serious crimes from serving as a “qualified professional asset manager” (QPAM) of ERISA assets or pension plans.

Unfortunately, the Department of Labor has not adequately enforced this law or its regulations in this area. Since waivers started being granted in 1997, 23 culpable firms have been granted exemptions from this disqualification rule and been allowed to continue their business of advising pension and other investment funds...

...This routine ability to evade proper punishment is the root of the issue of so much corporate and Wall Street crime—a slap on the wrist leads to a perpetual cycle of wrongdoing with no end in sight. Their corporate lawyers turn laws into “no-law” laws. Corporate crime pays....

And yet, we have to gut the food stamp & disability programs. Will Pitt is right, our priorities in this country are so wrong.

[Octafish]

1. Ask Penny Pritzker: The Rich get richer by design. So, let's tax offshore wealth...

On My Mind

Tax Offshore Wealth Sitting In First World Banks

James S. Henry
07.01.10, 09:00 AM EDT
Forbes Magazine dated July 19, 2010

Let's tax offshore private wealth.

How can we get the world's wealthiest scoundrels--arms dealers, dictators, drug barons, tax evaders--to help us pay for the soaring costs of deficits, disaster relief, climate change and development? Simple: Levy a modest withholding tax on untaxed private offshore loot.

Many aboveground economies around the world are struggling, but the economic underground is booming. By my estimate, there is $15 trillion to $20 trillion in private wealth sitting offshore in bank accounts, brokerage accounts and hedge fund portfolios, completely untaxed.

SNIP...

This wealth is concentrated. Nearly half of it is owned by 91,000 people--0.001% of the world's population. Ninety-five percent is owned by the planet's wealthiest 10 million people.

SNIP...

Is it feasible? Yes. The majority of offshore wealth is managed by 50 banks. As of September 2009 these banks accounted for $10.8 trillion of offshore assets--72% of the industry's total. The busiest 10 of them manage 40%.

CONTINUED....

http://www.forbes.com/forbes/2010/0719/opinions-taxation-tax-havens-banking-on-my-mind.html