Quote of the week: the Big 4 accountancy firms

From Margaret Hodge, chair of the UK's House of Commons public accounts committee, talking to officials from PwC, Deloitte, Ernst & Young and KPMG, noting that their skills ought to be directed to nobler ends than minimising tax bills for big business. Quoted in the FT:

"What really depresses me is you could contribute so much to society and the public good and you all choose to focus on working in an area which reduces the available resources for us to build schools, hospitals, infrastructure."

Well said. Make that quote of the month. And yet, as The Guardian notes, these four firms earned some £400m from the British state last year, while simultaneously helping to denude this same state of the tax that pays them.

"When the burglar is unscrewing your window locks, would you pay him a fat fee to clean your windows while he's at it?"

That would be another quote-of-the-day candidate. Hodge added:

“I don’t think people who give advice to cut the tax payable should be getting government business. Quite simple.”

 Yes, absolutely. 

Links Jan 31

Corporate Tax 2.0: Why France and the World Need a New Tax System for the Digital Age Forbes
By Nicolas Colin, author of a controversial new report commissioned by the French Government about the tax system and the digital economy.

Zurich Looking At Multinational Tax Tax-News
Tax authorities in the Swiss canton of Zurich are said to be in negotiations with Google, demanding that the US Internet giant pay more in tax, suggesting that Switzerland, like other European countries, is rethinking the way in which multinationals are taxed.

Nokia suspected of flouting transfer pricing rules too The Hindu Business Line

Italy Scours Deals Abroad for Elusive Tax Revenue The Wall Street Journal

Dutch tax haven has 20,000 letter-box companies including U2's FinFacts

Cyprus Rejects Calls for More Action on Money Laundering Bloomberg

Hong Kong needs increased vigilance over money laundering South China Morning Post

Charles Abugre: My image of Africa Socialist Worker

UK: MPs press accountants on tax avoidance Reuters
MPs grilled senior tax officials from leading accounting firms on Thursday over their role in helping big companies avoid tax, and said they could be banned from government contracts because of their tax work.

UK: David Cameron accused of double standards by keeping Google head as adviser despite corporate tax avoidance allegations levelled at the company The Independent

Association of Chartered Certified Accountants (ACCA) Slams UK Anti-Avoidance Plans Tax-News

U.S.:Senate crusader seeks allies in war against corporate tax loopholes Reuters

U.S. Is Preparing More Tax-Evasion Cases The Wall Street Journal

New SEC Chief Mary Jo White Thinks the Government Should Bring Cases – 'To A Point' Rolling Stone/Taibblog

Operation Caymans
Video - Two comedians go to the Caymans to investigate offshore tax shelter accounts like Mitt Romney's.

Money on an Island: new video

From the Apocalyptics: Money on an Island.



The lyrics are available here.

Links Jan 30

End In Sight For Vodafone's Indian Tax Dispute Tax-News

Hartnett’s back – at HSBC Tax Research UK
Following the bank’s $1.9bn settlement of money-laundering allegations late last year, Dave Hartnett, former head of Her Majesty’s Revenue & Customs (HMRC), appointed to a group that will head a new financial crime committee.

Jersey agrees that a new European Union Savings Tax Directive is inevitable – and it will have to comply Tax Research UK

Switzerland Nutures Tax Relations At World Economic Forum Tax-News

Swiss government pays HMRC £340million in tax deal The Telegraph
However, see List of killer loopholes in the Swiss "Rubik" agreements

Google will not oppose clampdown on tax avoidance, chairman says Guardian

Dutch tax haven has 20,000 letter-box companies including U2's FinFacts
Hat tip: Offshore Watch

Belgian monarchy rocked by Queen’s tax avoidance plans National Secular Society

Tax tricks as an exclusion criterion for sustainable investments ecoreporter (In German & subscription required)
On how sustainability-oriented investors and sustainability analysts now include tax avoidance as unethical behaviour within criteria for selection of investments.

Use of tax havens by U.S. global companies on the rise: report Reuters
More on a report by The Congressional Research Service (linked yesterday).

Who Pays? Institute on Taxation and Economic Policy
A new report on regressive U.S. taxes.

Obama Administration Fails to Prosecute Banking Fraud to "Save the System" The Real News
Interview with James S. Henry, author of TJN's report The Price of Offshore, Revisited.

The Untouchables Frontline - PBS
An investigation into why Wall Street’s leaders have escaped prosecution for any fraud related to the sale of bad mortgages.

Who Runs The World? Solid Proof It's A Core Group Of Wealthy Elitists Investing.com

Automatic information exchange coming sooner than we thought?

We have fought in the wilderness for years on the issue of automatic information exchange, with the OECD leading the charge in saying that its next-to-useless standard of 'on request' information exchange was the 'internationally agreed standard." Well, the OECD sort of threw in the towel a few months back, and now we see something that we discussed recently: in a complex chess game involving the U.S., the E.U., and various tax havens, many jurisdictions will have no choice but to accept automatic information exchange.

Tax Research notes a debate in Jersey, which explains the issue well. Important progress, confirming that our earlier analysis was right on the money.

To see why automatic information exchange is the superior form of transparency, see here or here.
 

Brobeck, Phleger & Harrison - Ten Years Later

January 30, 2012 is an anniversary of sorts.  It marks a turning point in my career... one that did not seem so good on that day ten years ago....., but now is simply a bump in the road of my journey.

It was January 2003.  I worked as the Texas marketing and business development manager for the California based law firm Brobeck, Phleger & Harrison LLP.  I had been there nearly two years and enjoyed working with this group of lawyers and the rest of the professional staff.  It was an interesting place to work, and these high achievers pushed me to be the best I could be (there was also some dysfunction, but for me.... the good outweighed the bad).

The economy, especially the tech sector, had been rocked by the boom and bust of the "dot com" companies, and the firm had clearly felt the pain of the collapse of the tech and venture bubble that came around 2001.  The firm had financial issues and there had been talk about a merger with a larger east coast firm.  But alas, no white horse arrived to save the day.

While we all knew, on some level, that the firm was vulnerable, few had predicted the total demise.  As the announcement was made that the whole firm would close, it seemed surreal.  Senior partners in San Francisco had voted to close the decades old San Francisco marquee legal firm.

Poof.  It was gone.  The whole place would be shuttered two weeks later (February 14, 2003).  Non-essential personal (think MARKETING) was terminated immediately.  No severance.  Not COBRA.  Nothing.

That was ten years ago this week.

I was fortunate.  A group of attorneys brought me with them to another firm where I served in the same role for another two years.  I then moved onto other industries and eventually starting my own companies.  These days I am still consulting with lawyers on how to grow their brand and increase their visibility within their business communities.  I also speak at legal conferences and at law firm retreats.  I enjoy this part of my job, as the lawyers still challenge me, and I think I do the same for them.

Today I am writing about Brobeck because anniversaries can make us nostalgic.  While the firm had it's issues, I have come to realize it also was a special place to work.  The attorneys respected the professional staff (well, most of them did....  The notable exceptions still are remembered!).  And this firm was always open to unique marketing and business development ideas.

The people I worked with were among the smartest and most aggressive professionals I have ever known.  They allowed me, as a "non-lawyer", to perform my duties as an executive member of their team.  I am appalled when I see lawyers who do not respect their staff or others, as it undermines their own long-term potential business (Those who act like jerks are often leaving money behind, and don't even know it!).

I toast the ghost of Brobeck, Phleger & Harrison here on my blog, as even with the bad parts, it was a highlight of my career.  I think about the attorneys who believed in me and allowed me to re-create the marketing position in my own image.  Their faith in my ability has shaped the rest of my career.  Plus many of them continue to hire me to train and consult at their current firms.  Most of them are my friends.

The shock of the closing of the firm leads me to the lesson that time puts everything in perspective.  The day the firm closed I was nervous, confused, unsure and angry.  Today I have my own business and enjoy serving all my clients in a variety of industries.  Time does seem to heal most of our problems.

I realize that not everyone who I worked with will look at this anniversary with the positive slant that I share here.  After ten years some are still bitter about the whole situation.  But I am proud of the work I did at Brobeck and wish the experience had lasted a little longer.

Have A Great Day.

thom singer

PS - It still makes me laugh a little that the firm's slogan / tagline was: "Brobeck: When Your Future Is At Stake".  The idea being they were who you turned to when there were serious issues.... of course the firm itself ended up having issues that gave it no future.  ;-)

"The ABC's of Networking" Is Now Available in Romanian

My book, "The ABC's of Networking" is now available in Romanian.

The book was released in India in 2012 in both English and Hindi.

This is one of the coolest parts of being an author.

Have A Great Day

thom singer

Links Jan 29

The price for helping Cyprus European Voice
Op Ed by Global Witness: "There should be no bail-out for Cyprus until it stops its companies being used to launder money."

Norway to Give Grant to Cyprus to Help Fight Money Laundering Bloomberg

Austria to resist EU Commission coercion to drop secrecy. EU Savings Tax Directive Amendments
Commentary in English on a Der Standard article linked yesterday, on Austria and Luxembourg blocking automatic information exchange.

UBS told to give IRS data on Wegelin accounts swissinfo

Italians Have a New Tool to Unearth Tax Cheats The New York Times

Dell's Multiple Restructurings Aid It in Tax Avoidance Tax Analysts
Great explanation by David Cay Johnston. See commentary from Richard Murphy at Tax Research UK.

Software Firms Find Tax Advantages The Wall Street Journal

UK: Church leaders call on MPs and MEPs to tackle tax justice Ekklesia

Stop accusing firms of tax-dodging, says Ernst & Young Management Today

U.S.: Choice of Mary Jo White to Head SEC Puts Fox In Charge of Hen House Taibblog

Ex-compliance officer: 'I had to tell the trader what to do – I had two minutes' Guardian
Hat tip: Offshore Watch

How ‘citizens of nowhere’ get away with tax secrecy

A letter in the Financial Times today:

From Mr James S. Henry.
Sir, As a member of the global board of Tax Justice Network, I was delighted to see your editorial “Cameron’s taxing question for G8” (January 25) commending David Cameron for his latter-day conversion to the long overdue cause of cleaning up corporate tax dodging.

But I do take exception to one sentence in your editorial, in which you remarked that “countries such as Britain and the US, while not themselves tax havens, can do much to improve transparency”.
In fact, of course, the US and the UK have for decades been the two largest “tax havens” in the world, especially for the wealthy elites of developing countries.

Both countries have carefully designed their tax codes and banking laws so that if, say, you happen to be a super-rich “non-resident alien” or “non-dom” from a country such as Mexico, Brazil, the Philippines or Nigeria, you and your entire family can live virtually free of all income and estate taxes – in the US case for at least half the year, in the case of the UK all year round.

In the US case, even when the half-year is up, you can then rotate over to your villa or yacht in any number of other residential havens. And if you simply want to maintain your investments here, by way of Delaware or Nevada corporations and trusts, whose secrecy rivals those of the very best “offshore” jurisdictions, that is even easier.

At the same time, since the US, the UK, and indeed most OECD countries have very spotty “automatic information exchanges” with developing countries, unless you are extraordinarily generous, your home-country tax authorities are unlikely to ever hear about all your first-world income and wealth.

So you can easily become a transnational “citizen of nowhere” for tax purposes. As such, you will have added your pile to what TJN estimates is now at least $21tn-$32tn of cross-border private wealth that is owned by the new private global elite – much of it invested by way of the US or UK “spider net” of secrecy jurisdictions.

Probably with the help of able US and UK private bankers and haven lawyers, you will have managed to achieve, for yourself and your family dynasty, across borders and time, that wonderfully anti-democratic ideal combination: political representation plus minimal taxation.

James S. Henry, Sag Harbor, NY, US, Senior Advisor and Global Board Member, Tax Justice Network

Henry, a former chief economist of McKinsey's and a veteran investigator of the offshore phenomenon, has more experience than almost anyone in the world of the blood and guts of the private banking industry and its offshore locales. (We hope that the FT doesn't mind our reproducing this letter, given that it comes from us originally.)

Guest blog: "Parallel Meetings" at the G-20: a note of alarm

A guest blog by Jorge Gaggero, an economist, member of TJN, also associated with RJF-América Latina, and CEFID-AR - Argentina

This is a short note of alarm about the "clear rules and fair procedures" that are needed, in my opinion, for the G20 parallel sessions (known as T-20; B-20 and S-20), to function properly. These proposals are based on my analysis of the experiences of these meetings in Los Cabos, Mexico, in February/March 2012 and in Moscow, Russia, last December.  I am an Argentine economist and a member of the Tax Justice Network, and I attended the T-20 Meeting in Moscow representing an Argentine think tank called CEFID-AR (Centro de Economía y Finanzas para el Desarrollo de la Argentina).

We were invited a year ago by Argentina’s authorities to participate at the Los Cabos T-20 Meeting but we decided not to attend because of the bias we noticed in the selection of the think-tanks invited by the Mexican organizers. We were concerned about both the number and the orientation of the “Northern” think-tanks: double the number of “Southern” ones. This asymmetry was subsequently reflected in the resulting “Report to G20 Sherpas” in March 2012, which was drawn up by the Mexican organisers without any consultation with, or approval by, the participants.

At Moscow we see that some worrying practices put in place by the organisers of the Mexican G20 Summit are being repeated. The principal ones are:

      (a) A bias in the selection of the participants of the Think20 - particularly the ‘chairs,’ but also many ‘speakers.’ (We see a heavy orientation to neoliberal approaches and recommendations; and also, in some cases, de facto lobbying efforts, which are incompatible with academic approaches.)

      (b) Ideological and biased presentations with poorly- (or un-) justified recommendations: for example in opposition to trade regulations; in favor of “unrestricted” movement of capital flows and multinational corporations’ activities; and promoting “multilateral investment treaties”.

      (c) Improper manipulation by the ‘chairs’ of the process of elaborating the minutes of meetings, which ended up not reflecting participants’ positions and discussions. These minutes were provided to the Sherpas and published on the G20 website but without consultation with the participants; apparently in order to ensure final recommendations in line with the organisers’ ex ante definitions (of neoliberal or “interested” orientation). They introduced new issues into the G-20 agenda without consensus at the meeting, they did not inform the Sherpas about important discussions that took place during the sessions, and they eliminated “controversial” matters (for example, a proposal to reintroduce into the agenda the critical problem of “illicit capital flight” and “secrecy jurisdictions / tax havens.”)

I was informed by participants at a “Civil-20” meeting that the people put in charge in Moscow had adopted a similar approach.

Finally, I sent a letter to the “Russia G20 Sherpa Office” (January 10th 2013) to inform them about these problems: “serious failures that are affecting the open, pluralist and democratic discussion on economic global affairs that is necessary today”. 

Jorge Gaggero

Letter below, dated January 10

Mr Pavel Komarov
Russian G20 Sherpa Office
Counsellor
 

Dear Pavel:

Remembering your cordial and effective assistance during my participation at Moscow T-20 Meeting, I must inform you (see under this lines) about some serious failures that are affecting the open, pluralist and democratic discussion on economic global affairs that is necessary today. Best regards
                                                                                                                                                                                                                                                                      Jorge Gaggero
                                                                                                                                                                                                                                                                           CEFID-AR
                                                                                                                                                                                                                                                               Buenos Aires, Argentina 

Links Jan 28

UK government made millions in profit from funding an aluminium factory in Mozambique that only pays 1% tax Jubilee Debt Campaign
See the report "Whose development is it?"

Liechtenstein, Austria Conclude Tax Treaty Talks Tax-News

Austria/Liechtenstein tax treaty excludes trusts, providing loophole Attac Austria (In German)

EU threatens Austria on bank secrecy Der Standard (In German)
EU tax commissioner Algirdas Šemeta criticises Austria and Luxembourg for blocking the EU Savings Tax Directive, noting that if an EU country provides better information exchange to a non EU country than to other EU countries - referring to the U.S. and FATCA - then that is a violation which might lead to an action by the EU Commission.

Australia & New Zealand: Coca Cola named in multi million dollar tax haven scam Investigate Daily
On an invoicing scam using the Cook Islands, which receives nearly NZ$25 million in taxpayer-funded aid money from Australia and New Zealand.

Update: Coca Cola sent these comments on the allegations to Mark Zirnsak, a TJN member:

We refer to your enquiry and advise as follows:
As we have previously advised CCA NZ was unaware of the investigation by the Cook Islands Audit office undertaken in 2011 and its findings.  We contacted the Cook Islands Audit Office on 16th January 2013 and have now heard back from them.

On the matter of CCANZ being contacted and not responding: The Audit office claim they sent an email to our call centre generic email address in mid-2011 but have no record of that email being sent. We have no record of receiving that email. The Audit office has confirmed to us that they have not phoned or contacted us at any other time about this or any other matter.

The Audit office confirm as regards the investigation into import duties and I quote their email today to us - “Our report highlights that the arrangement was not illegal and there was no wrongdoing, except poor decision making by Government officials at the time. “

The Audit office have also confirmed that to their knowledge CITC have not admitted they were guilty of criminal activity, as you had indicated in one of your emails.

We followed this up with another statement several days later:
Re:        Enquiry to CCANZ regarding the Cook Islands Audit Office Repor

We refer to our statement dated 17 January 2013 regarding the above matter and to your subsequent email enquiry.

As set out in our statement, prior to this week CCA NZ was not aware of any investigation by the CI Customs Department in 2011, or its findings in relation to the arrangement between CITC and the CI Customs Department.

Upon becoming aware of the report, CCA NZ promptly contacted the Audit Office to clarify the position.  Consistent with the findings of the CI Audit Report, the Audit Office has confirmed to CCA that the arrangement between CITC and the CI Customs Department was not illegal.   

Congressional Research Service Finds Evidence of Massive Tax Avoidance by U.S. Corporations Using Tax Havens Citizens for Tax Justice

To stop firms gaming the tax system, make them admit what they're doing Guardian

Amazon expected to reveal cash pile of up to $9bn after record Christmas Guardian

Analysts say online retailer's reserves have swollen as row rages over tax contributions

Apple shelters almost $1bn a week from US tax man The Telegraph

Starbucks threatens Cameron after 'unfair' tax attacks The Telegraph
Starbucks has threatened to suspend millions of pounds of investment in Britain after what it described as constant and unfair attacks over its tax affairs by the Prime Minister and the Government.

Goldman Sachs chief attacks David Cameron on tax avoidance The Telegraph

We can help poorer countries by tackling tax evasion and avoidance The Independent

Bill Nighy: tackle tax avoidance to put an end to world hunger The Independent

India Considering New Wealth Taxes Tax-News

Can't KPMG Find Enough Tax Loopholes to Make Phil Mickelson Stay in the United States? Citizens for Tax Justice

Switzerland awash with money laundering cases swissinfo

Something Sinister About the Lack of Prosecutions at Lehman Brothers Ian Fraser

LinkedIn: Everyday... Sometimes Twice

I am often asked if "LinkedIn really matters?"  In our social media crazy world many people pile into what ever communities they hear are the place to be seen, but often are lost in finding real value.

My opinion is that LinkedIn does matter.  When I talk to recruiters they assure me they use it when seeking candidates, and if you ever hope to have future job opportunities, I recommend having a robust LinkedIn profile so that you can be found.  Waiting until you are laid-off to jump into LinkedIn is like waiting until you are thirsty to dig a well (hat tip to Harvey Mackay who wrote a book called "Dig Your Well Before You're Thirsty" - although the book was written long before LinkedIn was founded).

More importantly it is being used by people every day before they show up to have a meeting.  This is true for sales people, those being sold to, and anyone having a chat.  LinkedIn, when used properly, can be an outstanding way to discover basic information about others.  In our time sensitive society there is rarely enough time to build rapport and discover connections.  But jumping to the purpose of a meeting can bypass the human-to-human connections that are necessary for a mutual understanding.

Without getting to the personal side, many meetings are quickly forgotten, and thus useless.

A brief visit to LinkedIn can tell you where a person went to college, previous employers, and whom you know in common.  There is no guarantee that this information will lead to a deeper conversation, but sometimes it is a goldmine.  One little thing in common is enough to explode a discussion and set the foundation for a more powerful connection.

You should never attend an appointment with someone you are meeting for the first time without visiting LinkedIn. If they have completed a rich profile, then you may see something that will lead you to a more meaningful conversation.

Additionally, you should complete your profile so that others can do the same thing.  It is not stalking, it is good business.  When someone takes the time to browse your profile it shows they valued meeting with you.  To sit down and say "tell me about yourself" is a clear sign that little forethought was invested.  Better is to say "I see on your LinkedIn profile you worked at Brobeck, Phleger and Harrison LLP, tell me about your experience working there".

For a small fee per month you can also get access to see who is accessing your profile.  I am not sure this is necessary for everyone, but it does show you what type of people view your information.  I have seen an increase in meeting professionals and association executives coming to view my profile, which confirms that some of my marketing efforts as a speaker are working.  It also gives me a head-up when one of them calls me, as I can familiarize myself with their organization in advance.

Are you ignoring LinkedIn?  Have you thought about ways to use it to expand your understanding of the people with whom you do business?  Is it something you imagined could have value, but have simply not invested the time?  What are you waiting for?  Most people would benefit from visiting LinkedIn each day to do a little research.  Heck, maybe twice a day!

I invite you to visit my LinkedIn profile. Maybe it will spur a thought that will lead to a conversation, and extend our relationship.

Have A Great Day

thom singer

Presentation Skills and Media Training For High School Athletes

It is not uncommon that business people ask me about presentation skills training.  I often coach executives on how to craft a better speech, and I am passionate about the importance of being able to communicate thoughts on stage, or when being interviewed by the media.  As our society moves more online and mobile the abilities to interact in person seem to be getting worse, not better.

Recently I was contacted by a gentleman who wanted me to coach his son on these skills.  I was not sure that working with a high school athlete was going to be beneficial for me or the kid, but as we talked about their motivation, it was clear that I could provide value.  This young football player is clearly headed toward playing college ball (maybe more?), and with that comes the need for him to be able to articulately communicate in many arenas.

He had taken a speech class his freshman year, but that only educated him on how to research and write a speech.  He did not seem to feel he learned much.  It did not prepare him for what lies ahead in the real world.  Athletes are under a ton of pressure, and learning to think fast, stay positive, and deliver meaningful information is paramount to their long-term success.  

As I researched for this training session I discovered that it is not just college and professional athletes who face the press after games. These days it is not uncommon for reporters to talk with high school students following their games, especially in the highly competitive world of Texas High School Football.  Plus the team leaders will have to speak in the locker room, at school assemblies, and during parent / booster banquets.  The earlier they grasp what it means to be in the spotlight, the more confident they can become in these situations. 

Thirty years ago when I was in school if a student said something wrong to a reporter, or was overly nervous in his speaking to a crowd, it was a one time hiccup.  However, today all they do an say will live on forever via the internet.  Recruiters are always seeking the best and the brightest, and these athletes need to be aware of their "Personal Brand" much earlier.  Plus the world of Twitter, Facebook, YouTube and other online sites can make anything they say or do at anytime part of their online search results.

The more prepared the athlete is for all that goes with media, speaking, branding, reputation management  and social media - the better off they will be if truly one of the fortunate ones who go all the way to a top college or even turning pro.

The closer I got to this meeting the more impressed I was with the young man and his family for their commitment to going above and beyond in preparing for life.  The first thing this student-athlete told me was that regardless if he ever gets to play college football, he knows that learning to communicate in all situations will set him up for a more successful career in any field.  WOW.

We spent nearly two hours together.  We discussed all that could cross his path in the short and long term, and I gave him some ideas on how to continuously improve his self-understanding of how he presents himself.  We also staged a mock interview on video and reviewed his answers together.  Thinking on your feet is often a learned skill.  This was a first step in a long journey.

I predict big things from this guy.... on the gridiron and beyond.

Have A Great Day

thom singer

Weight Clauses and Pro Athletes

We've addressed weight clauses before in player's contracts - including for Glen "Big Baby" Davis and Derek Caracter.  Jon Schuppe of NBC News now writes on the Phillies negotiating one with Delmon Young.

There's some reason to believe weight clauses are not especially effective -- the Bulls apparently tried weight clauses with Michael Sweetney, the now 30-year-old talented power forward who hasn't played in the NBA since 2007 due to obesity (the Celtics would later bring him to training camp but his weight had gotten too much).  Weight clauses might also prove counter-productive, given that some players play well heavy (David Wells, Charles Barkley etc.).

Then again, Davis slimmed down this season for the Orlando Magic and is having his best season in the NBA.  But hard it's to know if weight is the reason or if its because he's starting and is in the prime of his career at age 27.

Justice races at the old ballgame

The Washington Nationals hold the Presidents Race in the middle of the fourth inning, between giant heads of the four presidents on Mount Rushmore. One running story had been Teddy Roosevelt's losing streak, which finally ended last season.

The Nats today introduced a fifth president for the races--William Howard Taft. As explained here, Taft's size (i.e., girth) and facial hair could make him a fan favorite (although the photos show he is not that much larger than the other president heads. There also is the potential for a fun rivalry, given the political rift between Roosevelt and Taft.

More importantly, every race now can be part of an off-shoot event--Justice Races. No matter how Taft does against the other presidents, he always will be the fastest justice.

Allen Houston wins defamation lawsuit with help from Sports Law Blog's Alan Milstein

Kudos to Cynthia Arato and our own Alan Milstein, who has authored some of the best posts on our blog. Cynthia and Alan successfully represented the New York Knicks and the team's assistant general manager and former NBA all-star Allen Houston in a $7.5 million slander and interference case.

The lawsuit was brought by Arthur Rondeau, a basketball coach who previously worked with noted motivational speaker Anthony Robbins.  Rondeau claimed he was instrumental in helping Houston become a better NBA player and that Houston promised him help landing a coaching job with the Knicks or another NBA team. In a recent bench-decision, New York state judge Charles Ramos rejected as too vague Rondeau's assertion that Houston interfered with Rondeau's coaching aspirations or reneged on an actionable contract. The judge also did not find support for Rondeau's contention that Houston slandered him by allegedly telling others in the NBA that Rondeau was black mailing him. Additional details of the decision can be found in this Law360 article (subscription only).

Sports Litigation Alert--Duke Lacrosse

Here are the January issues of Sports Litigation Alert and Legal Issues in College Athletics, which include my summary of last month's decision by the Fourth Circuit rejecting several constitutional claims in the Duke lacrosse players' civil suits.

Cool Things My Friends Do: Holly Duckworth Conducts A Conference Presentation Via Skype

Each Friday on this blog I enjoy highlighting some of the cool things my friends do in their work and personal lives. 

This week I got to be part of something cool.  An experiment of sorts in the meetings industry.

My friend (and fellow National Speakers Association member) Holly Duckworth presented a large training session / workshop to a convention audience from 1300 miles away via Skype... while I live-facilitated the room in Austin, Texas.

Holly was asked to speak on "Getting Association Volunteers More Engaged" at the 13th annual Southwest Showcase (hosted by TSAE, MPI-Texas Hill Country Chapter, and IAEE-Central Texas Chapter), but was already committed to be speaking in Detroit on the same day.

Being a risk taker and one who likes to push herself beyond her comfort zone, Holly suggested that she lead her breakout session at the conference via Skype.  Those planning the conference were very open to unique presentation ideas, and were willing to experiment with the still new concept of a virtual presentation.

Since I was going to be the opening keynote speaker for the event, Holly asked if I would be on hand "in-person" to help facilitate the session.  I would also be "on-deck" to become the Plan-B Presenter should the technology connections fail (fortunately I have knowledge on this topic!!!).  I am all about pushing the envelope of "traditional conference experiences" when working with clients, and I was excited to be included in this trial effort.

Everything went well, and Holly did a great job of leading the session via Skype.  One attendee shared with me that she took three pages of notes, and enjoyed the way Holly and I bantered back and forth as if we were old pros at doing this type of "live and online" presentations.  Another found the concept to be a perfect fit for his own association that has an 80 year-old "expert" who could no longer travel to events.

While this was certainly not the first event to ever "Skype-In" a speaker, it is still relatively uncommon for conferences, trade shows, conventions and other gatherings to take a chance on something that is different (and that runs the risk of having a technology glitch).  Holly, the host committee, and I all learned a few "best-practices" from this experience that will make it even better the next time any of us undertake a virtual show.

I appreciate it when conferences try things that are out of the ordinary. I think all speakers should be open to "playing" with the event organizer to revamp the old ways and further impact the "Conference Attendee Experience".

Congrats to Holly for doing something new (and KUDOS to the event organizers for supporting the concept!!!).  I appreciate the opportunity to have been part of this session.

Have A Great Day

thom singer

Thom Singer is known as "The Conference Catalyst". He works with meeting planners and conference organizers to set the tone for a meeting. His presentations educate, inspire and motivate attendees to engage deeper in the event and make meaningful connections. http://www.conferencecatalyst.com 

Links Jan 25

Oxfam says world's rich could end poverty Al Jazeera
The world's 100 richest people earned enough money last year to end world extreme poverty four times over, according to new report The cost of inequality: how wealth and income extremes hurt us all

City of London Corporation reveals its secret £1.3bn bank account The Bureau of Investigative Journalism

Multinational firms avoid paying tax View and News from Norway
"Norwegian politicians are calling for tighter rules and a revision of tax laws to plug the holes."

As Foreign Profits Rise, Corporate Tax Rates Fall Bloomberg

How Yahoo Used Tax Havens To Cut Its Taxes By $42.8 Million ThinkProgress

Enda Kenny denies Ireland a magnet for corporate tax dodging Independent.ie

More criminal prosecutions planned for tax evasion: investors beware, there is no ‘fuzzy line’ Lexology

Obeids' trust is the best ad for tax reform Sydney Morning Herald
On the scandal of a former Australian MP and his family, dodging taxes and other obligations via an opaque trust structure.

Millionaires' Flight from Taxes Accelerates Baron's

Former French President Plans To Abandon Country To Dodge Taxes, Corruption Charges ThinkProgress
See also: Gérard Depardieu's French Tax Evasion Trend May Continue with Country's “Richest Man” and Nicolas Sarkozy Vanity Fair

Russian Tax Fraud Funneled Via Estonia’s Banks Bloomberg

India: Taxes: Why do the super-rich crib so much? FirstPost
A discussion of the inheritance issue.

Italy police catch 56 bn euros in tax evasion in 2012  France 24/AFP

Offshore Targets In Sight For British FATCA iExpat
"Dubbed ‘Son of FATCA’ after the US Foreign Account Tax Compliance Act (FATCA), the British law will require financial institutions in offshore centres  like the Channel Islands, Bermuda, the Isle of Man, British Virgin Islands, Caymans Islands and Gibraltar to hand over financial information about UK taxpayers."

Staying in Tune With the Tax Spirit of the Times NY Times

Mauritius grows tax income, takes aim at money laundering Africa Review

Large banks seen dodging EU financial tax bullet Reuters

Call It Corruption, Not Ideology Huffington Post

Duke's 3rd Annual Sports & Entertainment Law Symposium

Warren Zola and I will be speaking tomorrow, Friday, January 25th at Duke Law for its 3rd Annual Sports & Entertainment Law Symposium along with a wide array of counsel and leaders in the business of both sports and entertainment.  Below is the schedule.  If you are in the Research Triangle area, hopefully you can make what looks to be a great event.

The Duke Sports & Entertainment Law Society (SELS) presents its 3rd Annual Sports & Entertainment Law Symposium: The Changing Economics of the Sports and Entertainment Industries

Schedule of Events – Friday, January 25^th

8:30 – 9:00 Registration Breakfast

9:00 – 9:05 Welcome Remarks

9:05 – 9:50 NFL Concussion Litigation

• Timothy Epstein, SmithAmundsen, Chicago
• John Hogan, John Hogan Law, Atlanta
• David Hoyle, Motley Rice, South Carolina

10:00 – 10:45 Creating Value for Professional Sports Franchises

• Scott Wilkinson, Atlanta Hawks, Atlanta
• Billy Traurig, Carolina Hurricanes, Raleigh

10:55 – 11:40 Monetization of College Sports

• Dr. Kevin White, Vice President and Athletic Director, Duke University, North Carolina
• Dean Jordan, Wasserman Media Group, Raleigh
• Lee Berke, LHB Sports, Entertainment & Media Inc., New York

11:50 – 12:40 O’Bannon v. NCAA

• Warren Zola, Boston College School of Management, Boston
• Curt Clausen, Skadden Arps, New York
• Christian Dennie, Barlow, Garsek and Simon LLP, Texas

12:45 – 1:45 Networking Lunch

1:45 – 2:30 Copyright Reversion

• Uwonda Carter, The Carter Law Firm, Atlanta
• Greg Eveline, Eveline Davis and Phillips, Loyola University Law School
• Ross Charap, Arent Fox, New York

2:40 – 3:25 Film Finance

• Thomas Glen Leo, Sheppard Mullin, Los Angeles
• David Zitzerman, Goodmans, Canada
• Carolyn Casselman, Paul Weiss, New York

3:35 – 4:30 Handling Scandal

• George Hanna, MLB Department of Investigations, New York
• Timothy Epstein, SmithAmundsen, Chicago
• Jennifer Harper, Jackson Lewis, Washington, D.C.

4:30 – Closing Remarks and Reception

Links Jan 24

Australian Tax Office approved tech companies' tax avoidance tactics zdnet

Austria To Wait For Revenues From Swiss Tax Deal Tax-News
Which would also give extra time, perhaps, for accounts to be moved or restructured.

UK Supreme Court Blocks Tax Advisers' Legal Privilege Tax-News

U.S.: Court Holds IRS Can Get Key Tax Records Even Held by Your Lawyer Forbes

Spain’s Leader Faces Political Storm Over Corruption CNBC
"Spanish Prime Minister Mariano Rajoy is facing an escalating political storm after his former party treasurer was accused of tax evasion and fraud linked to a 22 million euro fortune hidden in Swiss bank accounts."

Gimme Shelter (From Taxes) BloombergBusinessweek

U.S.: When Tax Cuts Were a Tough Sell NY Times
Speaking of when Republicans said, of President John F. Kennedy's plan for large tax cuts: "“It is morally and fiscally wrong, and will do irreparable damage to the Republic.”

Responses to post-2015 proposal: (i) Ambition Uncounted
On Save the Children's Ending Poverty in our Generation, which sets out a vision of how the successor to the Millennium Development Goals could look.

Life in the ‘Alpha Territory’: investigating London’s ‘Super-Rich’ Neighbourhoods LSE

Central bankers should be brought to heel by elected parliaments The Telegraph

New insights into the costs of the offshore system - now in German, from the recently released report The Price of Offshore Revisited

See also: links from the TJN Germany Blog

The Job-Creation Shell Game: the economic warfare between U.S. states

From Good Jobs First:

Study: U.S. States Waste Billions Luring Jobs from Each Otherby Greg LeRoy, Kasia Tarczynska, Leigh McIlvaine, Thomas Cafcas and Philip Mattera

Washington, DC, January 24, 2013--State and local governments waste billions of dollars each year on economic development subsidies given to companies for moving existing jobs from one state to another rather than focusing on the creation of truly new positions, according to a study released today by Good Jobs First, a non-profit, non-partisan research center based in Washington, DC. The report, entitled The Job-Creation Shell Game, is available at www.goodjobsfirst.org/shellgame.

"What was long ago dubbed a Second War Between the States is, unfortunately, raging again in many parts of the country," said Greg LeRoy, executive director of Good Jobs First and principal author of the report. "The result is a vast waste of taxpayer funds, paying for the geographic reshuffling of existing jobs rather than new business activity. By pretending that these jobs are new, public officials and the recipient companies engage in what amounts to interstate job fraud."

Interstate job piracy is not a fruitful strategy for economic growth, LeRoy noted: "The costs are high and the benefits are low, since a tiny number of companies get huge subsidies for moving what amounts to an insignificant number of jobs." LeRoy added: "The flip side is job blackmail: the availability of relocation subsidies makes it possible for companies that have no intention of moving to extract payoffs from their home states to stay put."

Summarizing studies demonstrating that interstate job relocations have microscopic effects on state economies, the report reviews the history of economic competition among the states and presents eight case studies of those areas of the country where job piracy is currently most pronounced. Highlights include:

• In the Kansas City metro area, companies have been getting eight-figure subsidy packages to move from the Missouri side to Kansas, or vice versa.    
• In Texas, the "deal-closing" Texas Enterprise Fund as well as a privately financed marketing group called TexasOne are used to brazenly lure companies from many states, including California.    
• New Jersey has doubled down on both job piracy and job blackmail payoffs, continuing to lure firms from New York City-many of them Wall Street firms that were likely to come anyway.    
• Georgia, which we rename the Poach State, stunned officials in Ohio when it successfully lured the headquarters of NCR from Dayton, where the company had been based for 125 years.    
• Tennessee embodies all the policy contradictions. Its largest city, Memphis, is frequently the victim of poaching by bordering Mississippi, yet Tennessee created a whole new subsidy program to lure the North American headquarters of Nissan from southern California.
• The booming Charlotte region has job growth most states would die for. Yet instead of managing their growth, the 16 counties in North Carolina and South Carolina routinely poach jobs from each other, using both state and local subsidies.    
• Rhode Island has long pirated jobs from Massachusetts, but when it gave a very large package to lure video game maker 38 Studios, founded by retired Boston Red Sox star Curt Schilling, the deal soon blew up and criminal prosecutions are now under way.

Huge job blackmail subsidies have left many taxpayers bitter in states such as Illinois and Ohio, and Sears Holding Corp. has continued to shed jobs despite getting a second nine-figure retention deal from Illinois.

To cool these job wars, the report recommends that states demonetize interstate job fraud. That is, the states should stop subsidizing companies for existing jobs that are treated as "new" simply because their location has changed.

The study reveals that the vast majority of states already know how to do this: four-fifths of the states already refuse to pay for intrastate job relocations. For at least one and sometimes most of their major incentive programs, 40 states disallow subsidies for existing jobs that are merely being moved within their own borders.  

The report also recommends that states end their business recruitment activities that are explicitly designed to pirate existing jobs from other states. It also suggests a modest role for the federal government: reserving a small portion of its economic development aid for those states that amend their incentive codes to make existing jobs ineligible for subsidies and certify that they no longer engage in raiding.

Read the report here.

Britain's Prime Minister now sings to a TJN tune

We were going to write on this separately, but Richard Murphy has done it for us already, so we'll cut and paste from his blog.

David Cameron spoke in Davos this morning. There was, of course, stuff in his speech with which I disagreed. But he also spoke extensively on tax and transparency. And there he sang to the tune that has been created over the last decade by the Tax Justice Network and this blog. For the record I’m going to quote big chunks of the speech here to show just how much he’s now talking our language and I’ll do analysis later:

Prime Minister David Cameron's speech to the World Economic Forum in Davos
(edited highlights)
My argument today – and the idea that drives the G8 this year – is that competing in the global race isn’t just about what we do at home.

It’s about the wider economy we all operate in, the rules that shape it, the fairness and openness that characterise it.

We need more free trade.

We need fairer tax systems.

We need more transparency on how governments – and yes, companies – operate.

Let me tell you why.

It’s the oldest observation of the modern age that we are all inter-connected.

Communication is faster than ever.

Finance is more mobile than ever.

And yet the paradox of this open world is that in many ways, it’s still so closed and secretive.

It’s a world where trade is choked off by barriers and bureaucracy.

It’s a world where some companies navigate their way around legitimate tax systems – and even low tax rates – with an army of clever accountants.

It’s a world where – regrettably – corrupt government officials in some countries and some corporations run rings around the letter and spirit of the law to rip off hard-working people and plunder their natural resources.

There’s a long and tragic history of some African countries being stripped of their minerals behind a veil of secrecy.

We can see the results: the government cronies get rich – some beyond their wildest dreams of avarice – while the people stay poor.

So it’s clear how this can be devastating for some developing countries.

But actually, all this matters massively to developed countries too.

When trade isn’t free we all suffer.

When some businesses aren’t seen to pay their taxes that is corrosive to public trust.

When shadowy companies don’t play by the rules that drives more box-ticking and regulation and that makes life harder for other businesses to make a profit.

That’s why I want this year’s G8 to bring a new focus on these issues.

And then:

We want to use the G8 to drive a more serious debate on tax evasion and avoidance.

This is an issue whose time has come.

After years of abuse, people across the planet are calling for more action and most importantly, there is gathering political will to actually do something about it.

Again, let me put my cards on the table.

I know there is a difference between tax evasion and avoidance.

Evasion is illegal.

It can – and should – be subject to the full force of the criminal law.

But what about avoidance?

There’s nothing wrong with sensible tax planning – and there are some things governments want people to do to that reduce tax bills, such as investing in pensions, start-up businesses or charities.

But there are some forms of avoidance have become so aggressive that I think it is right to say – these raise ethical issues – and it’s time to call for more responsibility and for governments to act accordingly.

In the UK we’ve already committed hundreds of millions into this effort – but acting alone has its limits.

Clamp down in one country and the travelling caravan of lawyers, accountants and financial gurus just moves on elsewhere.

So we need to act together at the G8.

If there are difficult questions about whether existing standards are tough enough to tackle avoidance, we need to ask them.

If there are options for more multi-lateral deals on automatic information exchange to catch tax evaders, we need to explore them.

And we want to work with developing countries on this too.

The fact is the poorer the nation, the more they need tax revenues, but often the weaker the capacity they have to collect them.

But we must not let them off the hook – it can be done.

The UK has worked with Ethiopian authorities to help on tax collection and in the last decade the amount of tax collected increased by around seven-fold.

All of this – in developed and developing countries alike – comes down to a simple issue of fairness.

I believe in low taxes.

That’s why my Government is cutting the top rate of income tax.

We’ve cut corporation tax.

Individuals and businesses must pay their fair share.

Any businesses who think that they can carry on dodging that fair share or that they can keep on selling to the UK and setting up ever-more complex tax arrangements abroad to squeeze their tax bill right down. Well, they need to wake up and smell the coffee because the public who buy from them have had enough.

And let’s be clear:

Speaking out on these things is not anti-capitalism. It’s not anti-business.

If you want to keep low tax rates then you’ve got to keep taxes coming in.

Put simply: no tax base – no low tax case.

This is the argument that has been made brilliantly by the economist Paul Collier – and I am delighted he’s been advising my Government on this ahead of the G8.

This is about me and all the other G8 leaders being able to look our people in the eye and say that when they work hard and pay their fair share of taxes, we will make sure that others do as well.

Then he said:

The third big push of our agenda is on transparency, shining a light on company ownership, land ownership and where money flows from and to.

This is critical to developing countries.

Of course aid has played – and will continue to play – an important role in development.

And I’m proud the UK is keeping its aid promises.

I’m also proud we’re leading the fight on global hunger, funding nutrition programmes for 20 million children and pregnant women over the next few years.

But at the same time we need to move the debate on, so we’re not just dealing with the symptoms of poverty but tackling the causes.

I’ve argued for years that there’s a “golden thread” of conditions that enable open economies and open societies to thrive:

The rule of law; the absence of conflict and corruption; the presence of property rights and strong institutions.

Now as co-chair of the UN High Level Panel and with the Presidency of the G8, there is a chance to put turbo-boosters under this agenda and we’re seizing that chance.

I want this G8 to lead a big push for transparency across the developing world.

To illustrate why, let me give you one example.

A few years back a transparency initiative exposed a huge black hole in Nigeria’s finances – an $800 million discrepancy between companies’ payments and government’s receipts for oil.

This is leading to new regulation of Nigeria’s oil sector – so the richness of the earth can actually enrich the people of that country.

And the potential is staggering.

Last year Nigerian oil exports were worth almost $100 billion, more than total net aid to the whole of sub-Saharan Africa.

Put simply, unleashing the natural resources in these countries dwarfs anything aid can achieve – and transparency is critical to that.

So we’re going to push for more transparency on who owns companies, on who’s buying up land and for what purpose, on how governments spend their money, on how gas, oil and mining companies operate, on who is hiding stolen assets and how we recover and return them.

Like everything else in this G8, the ambitions are big – and I make no apology for that.

 And he concluded:

Let me end today by saying this.

I know some people might be thinking: he’s talking about cracking down on tax avoidance, making companies be more transparent – doesn’t this sound like an old-fashioned, anti-business, bash the rich, tax success agenda?

Absolutely not.

This is a resolutely pro-business agenda.

I am about the most pro-business leader you can find.

I yield to no-one in my enthusiasm for capitalism.

It’s an economic system that has generated more wealth, unleashed more human potential, and reduced more grinding poverty than any in history.

I do not believe that one person’s wealth, fairly gained through free exchange in an open market, is the cause of another person’s poverty.

I will have no truck with those who want to demonise the successful, to level-down rather than to build up, or those who continually seek to turn ‘profit’ into a dirty word.

But I also passionately believe that if you want open economies, low taxes and free enterprise then you need to lay down the rules of the game – and be prepared to enforce them.

Poor business practice doesn’t operate in a vacuum; it hurts the good.

When one company doesn’t pay the taxes they owe, then other companies end up paying more.

When some cowboys play the system all businesses suffer the fall-out to their reputation.

That’s why it’s not just those in the NGOs who have been lobbying my government on these issues, it’s those in the high-rises of the City of London – bankers, lawyers, senior figures in finance.

They’ve told us to pursue this agenda hard – and that’s what we’re going to do.

This is a vision of proper companies; proper taxes; proper rules, a vision of open societies, open economies, and open government and we are going to work with our partners at the G8 to achieve it.

TJN: in themselves these are fine, welcome words, and we're delighted to hear them, and to have been right in the vanguard of all this. We'll quote these words back to him in years to come.

For now, congratulations to Cameron.

We'll leave comments about forked tongues for later.