Ritchie’s ignorant of active and passive

Remember how a secrecy jurisdiction is defined. Secrecy jurisdictions are places that intentionally create regulation for the primary benefit and use of those not resident in their geographical domain. That regulation is designed to undermine the legislation or regulation of another jurisdiction. To facilitate its use secrecy jurisdictions also create a deliberate, legally backed veil of secrecy that ensures that those from outside the jurisdiction making use of its regulation cannot be identified to be doing so.

The impact of all tax haven activity is extra-territorial.

The impact of all tax competition is also extra-territorial.

If it is now illegal for a tax to have an extra-territorial impact the impact is enormous. It is of minor consequence for the FTT, where a few tweaks would solve the problem, but the impact on tax havens and tax competition would be wholly beneficial. Be careful for what you’d ask is what I’d say to those trying to use competition principles to beat the FTT: this could rebound on you, very strongly.

Sigh.

There’s a difference between actively taxing someone in another jurisdiction and passively allowing someone not to be taxed in another jurisdiction.

I am guilty of murder if I murder someone. I am not guilty of murder if I’ve nothing to do with the fact that a bloke 50 miles away glasses someone’s jugular.

France attempting to tax American banks trading French bonds in London is extra-territorial taxation. The UK not taxing Americans trading French bonds in London is not.

14 comments on “Ritchie’s ignorant of active and passive

  1. It is illegal for me to use a flamethrower on my neighbour’s garden, as his plants will wither and die and this means I have damaged him.

    It is therefore illegal for me to water my own lawn and not his, as this also has the result that his plants will wither and die.

  2. “The impact of all tax haven activity is extra-territorial.”

    What the fuck is that even supposed to mean? It’s perfectly obvious that it’s untrue as written.

  3. @ SE
    Murphy has invented the concept of a “secrecy jurisdiction”, so of course he has naming rights and the choice of how to define it.
    He is now trying to tar all low-tax countries with the smear that they are actively encouraging crime and interfering in other countries internal affairs like Russia and the USA.
    As usual some of his lies are so obvious that they are laughable (he says that changing the rate of tax payable by residents, whether individuals or corporates, has no effect on residents!), but he doubtless hopes that will cause some people to overlook the less obvious lies.

  4. It’s the Interstate Commerce Clause argument.

    http://en.wikipedia.org/wiki/Wickard_v._Filburn

    The US Constitution authorised the Federal Government to regulate commerce between the States, a very clear assigned power. The Supreme Court declared that anything you do *within* a State that indirectly affects interstate trade was thus covered by the clause, thus assigning the FG unlimited regulatory powers within the States. Classic casuistry of the kind beloved of authoritarian government bloatists.

  5. John, SE>

    A secrecy jurisdiction is the risdiction where the secrecy-Jews live…

    Once you realise that Ritchie uses ‘tax avoider’ and the like as a euphemism for ‘Jew’, his rant becomes rather darker – particularly the warning at the end about what he’d do if he could abolish national sovereignty and the rule of law.

    Hmmn, someone who paid no attention to laws or national boundaries in his efforts to kill the evil Jewish financiers? Never heard of anyone like that before, have we?

  6. “I would tax all foreigners living abroad”

    Prof Gumby (c/o Monty Python

    I would certainly solve our problems.

  7. Down to: “The impact of all tax competition is also extra-territorial.” wholeheartedly agree with the fellow. Good show! What’s not to,like?.

  8. Nah. Freeports and similar. Intra-territorial tax competition.

    “Ritchie’s ignorant” would have been an entirely sufficient and accurate headline.

  9. I noticed he left the ‘TJN’ by mutual consent recently. Evidently even that haven for the deranged found him too spiky on a personal basis and too extreme to continue his membership. I’m extremely excited to learn that the activities of the Tax authorities in Denmark, Japan, South Korea and Germany (all classified as ‘Secrecy jurisdictions’ by TJN) are all extra-territorial. Residents there will be reassured they can refuse to pay tax as the authorities’ activities regarding taxation are exclusively ‘extra-territorial’. What an utter numbskull.

  10. Richard believes that high taxes are good for a country. Therefore, a country with high taxes is better than one with low taxes and, thus, more attractive to right-thinking people. Therefore setting high taxes will cause right-thinking people to desert those rubbishy low-tax countries.. which is an extra-territorial impact. Therefore high taxes are illegal.

    Be careful what you wish for.

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