International tax and banking laws exposed

Written on the 13 May 2009

A UNIVERSITY lecturer has undertaken research that flouts international banking and tax laws.

Griffith University researcher Professor Jason Sharman, used Google and $10,000 to prove international banking and tax laws in the US and UK are a ‘joke’.

In an online experiment, Sharman set up shell corporations and bank accounts without identification — corporations which could easily be used to launder money. In one case, a US provider offered to use their employees’ own social security numbers as the identification required to set up corporations.

Sharman set out to test laws violating recent global standards stopping anonymous participation in the international financial system. He emailed 45 different corporate service providers across 22 countries soliciting offers to set up anonymous shell corporations – 17 agreed. Of these, 13 were from OECD (Organisation for Economic Co-operation and Development) countries, including seven in the UK, four in the United States, one in Spain, and one in Canada, compared with only four of 28 known tax havens.

From the 17 anonymous corporations, Sharman solicited offers for five bank accounts (two from US, two from UK and one from Liechtenstein) without having to provide any certified identification as to the true owner of the company and account.

"It cost from only $800 to $3000 for up-front costs followed by a slightly smaller amount on an annual basis for each corporation," he says.

"I found small island offshore centres traditionally thought to be loose with tax and international laws to have standards that are much higher than major OECD economies like the United States and the United Kingdom."


Latest News

WHY VIDEO IS A "GIVEN" FOR BUSINESS

IN TODAY's digital-driven world, video is king and if used right, it can push a company's brand and brand ...

BRAMBLES TUMBLES AFTER REDUCING GUIDANCE

BRAMBLES (ASX: BXB) will miss its first-half guidance due to cost pressures at its North America business.

The com...

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

ASF UNVEILS TRAFFIC PLANS FOR THE SPIT

A SECOND bridge over the Nerang River is the centrepiece of the ASF Consortium's plan to improve traffic flow ...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter