The Jubilee Blog

Paris Tax Raid on Google Office

by Greg Williams

French authorities raided the Paris offices of Google Ireland, an international division of the US founded internet giant. The raid seeks to determine whether Google has established itself permanently in Paris and thus is subject to taxation. Google claims this office merely provides back office functions like marketing and does not generate revenue. 

Eric LeCompte, executive director of Jubilee USA, a religious development coalition that monitors how global fiscal policies affect poor populations, releases the following statement:

"The Paris raids are another example of a global epidemic.

"Every year, across the world billions of dollars are lost in taxes because of elaborate evasion schemes. When taxes aren't paid, schools aren't built, hospitals close and infrastructure crumbles. Poor people too often lose the most.

"No matter where corporations do business, they need to publicly report what payments they make to every government where they set up shop.
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"Along with the concerns that stem from the Panama Papers, these allegations show the need for more transparency in international tax policies."

 

House Introduces Puerto Rico Debt Crisis Legislation

by Greg Williams

Representative Sean Duffy (R-WI) introduced a new version of legislation to help resolve Puerto Rico's financial crisis. The Puerto Rico Oversight, Management and Economic Stability Act ("PROMESA," HR 5278) gives Puerto Rico tools to restructure its debt and establishes a fiscal oversight board. This latest version of the legislation lengthens the time that Puerto Rico is protected from debt lawsuits while the island is restructuring debt. 

Eric LeCompte, executive director of the religious development coalition Jubilee USA, releases the following statement:

"Congress should pass this Puerto Rico debt legislation as soon as possible. There can be no economic growth in Puerto Rico until the debt is restructured. Without a negotiated solution to the crisis, this legislation provides tools that can help get the debt back to payable levels.

White House Acts on Corruption and Tax Evasion in Wake of Panama Papers

By Greg Williams

The Obama Administration announced actions to combat money laundering, corruption and tax evasion. In April, the "Panama Papers" leak exposed how "anonymous shell corporations" facilitate crime and corruption.‎ 

"It's crucial to global development that we stop corruption and tax evasion," noted Eric LeCompte, executive director of the religious development coalition Jubilee USA Network. "Developing countries lose a trillion dollars a year to corruption, crime and tax evasion."

According to a 2012 academic study from Griffith University, the United States is the second-easiest country in the world to set up an anonymous shell company. These types of companies are accused of being vehicles that can facilitate crime and tax evasion. Representatives Carolyn Maloney (D-NY) and Peter King (R-NY) and Senator Sheldon Whitehouse (D-RI) introduced legislation February 3 to address the issue. After the "Panama Papers" leak, which cited more than 200,000 shell companies in its revelations, the number of co-sponsors of the House bill nearly doubled. In announcing its own legislation, the White House noted that anonymous shell company formation in the United States "can only be resolved through Congressional action."