Osborne: G7 agree to target tax evasion and avoidance … George Osborne co-chaired the two-day meeting in … The G7 group of industrialised nations have agreed that there must be collective action against tax evasion and avoidance, the UK's finance minister has said. Chancellor George Osborne said after the talks that it was "incredibly important" that firms and individuals paid the tax they owed. The members agreed on more policy issues than had been assumed, he added. The G7 comprises the US, Germany, the UK, Japan, Italy, France and Canada. – BBC
Dominant Social Theme: People need to be brought to justice in order to pay their fair share.
Free-Market Analysis: It will not be much noted by the mainstream press that this week's meeting of the G7 has attempted to harmonize tax collection worldwide.
As we follow dominant social themes, we were suspicious of Cyprus's planned implosion a few weeks ago and believed that it might be part of a larger, organized effort at rationalizing global taxation.
Looks like we were correct. Here's more from the above BBC article:
In a news conference held jointly with Bank of England governor Sir Mervyn King, Mr Osborne said … "We must put regimes in place… to deal with failing banks and to protect taxpayers and to do so in a globally-consistent manner," he said.
The issue of tax avoidance had been raised by Britain, Germany and other countries earlier this year. They asked the Organization for Economic Co-operation and Development (OECD) – which advises rich nations on tax policy – to examine possible changes to address the problem of multinational companies using transfer pricing rules to shift profits into tax havens.
The overarching goal of Britain and the rest of the G7 is to have a new set of rules around the world to prevent tax evasion and avoidance …
On top of this, the OECD is doing a lot of work behind the scenes to come up with a framework to clamp down on evasion and make avoidance less profitable for big firms, such as Starbucks, Google and eBay. The OECD will report into next months G8 in Fermanagh, but principally for Sept's G20 summit.
BBC business correspondent correspondent Joe Lynam said the latest talks were an important step towards a new global standard on tax. Britain wants all EU countries to sign up to a pilot scheme where tax authorities share information with each other, including low tax countries such as Luxembourg and Austria, our correspondent said.
Mr Osborne also said that British territories, including the tax havens Jersey and the Cayman Islands, need to play more of a part in trying to put a stop to tax evasion.
Notice, please, that Britain has lost its empire but Osborne seems entirely comfortable in referring to various British territories and urging them to do more regarding tax harmonization.
The G7 meeting was chaired by Osborne and Mervyn King, head of England's central bank. As usual, Britain and its institutions and affiliates sit at the center of globalization and are organizing this further push.
After World War II, the United Nations, International Monetary Fund, World Bank, World Health Organization and numerous other globalist bodies were set up under the supervision of the West and particularly the US, which often acts as proxy for British interests.
Perhaps the most important organization of all was also expanded in post-war years, and that is the Bank for International Settlements.
Today, the BIS sets policy for upwards of 50 of the world's most powerful central banks and the addition of tax harmonization adds fiscal centralization to the world's long-term monetary harmony.
Step by step we see the expansion of the global financial infrastructure. It is indeed a global government in waiting.
The problem with such centralization is that it inevitability offers additional possibilities for abuse and corruption. When power is not disbursed but centralized, then human history shows us clearly it will be wielded in unfair and even evil ways. Power corrupts and absolute power corrupts absolutely.
Quis custodiet ipsos custodes?