But there is another factor to consider. All three territories I have mentioned are significant tax havens. If there are impacts on St Kitts and Nevis and Bermuda, which are also British Overseas Territories, then they too also fall into this category. Antigua and barbuda and The Bahamas are members of the Commonwealth, and tax havens. These places all set out to undermine the world’s tax systems, and are ably assisted in that task by the professional services firms that operate from them, like PWC, EY, Deloitte and KPMG. My question now is a very simple one. It is whether or not both the people making use of these tax havens and those that sell services from them should be required to contribute to the cost of bailing them out?
Should the bankers, lawyers and accountants with branch offices in those places now be expected to very publicly contribute to the cost of supporting the reconstruction required in those communities? What are the Big Four accountants saying about this?
Should companies like Virgin, ultimately headquartered as it is in the British Virgin Islands, be similarly expected to contribute in significant amount, perhaps based on the tax they might have avoided by using the place?
And should the places in question now be expected to raise considerable additional funds for their own benefit by either significantly increasing the charges they make for offshore services (for example, by raising company registration fees), or by charging tax on the companies based in these places?
That’s the Senior Lecturer. This is a Professor:
The simpler question is to ask those “elites” who save billions by using tax shelters in the Caribbean, and the Big 4 accounting firms that enable their transactions, to contribute to the relief funds. The more difficult question is how to change the status quo and make sure that these companies actually contribute to the resources they take advantage of, both at home and abroad.
And Ms. Mazzucato is a professor in a manner which Ritchie is not.
A modest proposal would be for the countries to raise money from the companies by increasing, for example, the charges they make for offshore services, or by charging tax on the companies based in these places.
Three’s no honour in academe is there, not even a mention of whose idea it was.