The Hidden Wealth of Nations: The Scourge of Tax Havens Hardcover – September 22, 2015

Tax havens represent one of the ugly by-products of capitalism. They are places where the super-rich (individuals and corporations) keep their money. They are kept in secret accounts so that they cannot be accounted for as part of the taxable income of the individual or corporation. The consequence is that the super-rich pay less taxes than others, and the burden of public expenditure falls on those others. The rich call it tax planning, but Zucman attempts to persuade the reader that keeping money in tax havens is unfair to those who do not have the money to do so. Recently, the International New York Times (23 October 2015) reported that the European Commission ordered Starbucks to pau up 30 million euros in back taxes to the Dutch government. Starbucks had channelled large amounts of profits from payments for its coffee roasting recipes. The payments were not made to Starbucks but to an entity known as Alki LLP, a ‘mysterious and opaque box’ that was not required to file financial statements and which has since shut, but ‘Alki was folded into a new company, Starbucks EMEA Holdings’ which has yet to file any financial statements, according to the INYT.In this book, Zucman shows how tax havens come about, where they are (Virgin Islands, Luxembourg, Switzerland among the main ones), who goes to them, and the inequality between the super-rich and the rest that results from placing money in tax havens. Zucman says that 55% of $650 billion ‘foreign profits’ of corporations is made in six countries with low or no taxes and where little or no production or sale is done to generate that money in those countries. He named the countries as ‘Netherlands, Bermuda, Luxembourg, Ireland, Singapore, and Switzerland’. He proposes three major actions to rectify this. First, he thinks that there should be an open register of financial wealth of every wealth-owning entity. Secondly, he calls for adequate sanctions against tax havens, and thirdly, he thinks that tax structures should be revamped. For example, not allowing profits to be accounted separately in different countries. Only when the world can see the true global profit and loss accounts of any given company, can the taxation be fair and equitable.A great deal has been packed into this slim 113-page book that is extremely thought provoking. It also calls into debate the age old issue of not penalising entrepreneurs so that their motivation to create greater wealth will be maintained. Is capitalism taking another knock?

One Star: this book won't teach you how to hide your money!Yes, I'm joking.Hidden Wealth is an informed view into the current state of the movement of money out of taxable states into low to no tax hiding places.spoiler: those polite Swiss are still screwing the rich worldThe author proposes how to resolve this issue but without realistic considerations, eg: even more regulationFor a book that could be a very dry and academic the English language edition is written in beautiful prose. Kudos to the author and translator Teresa Lavender Fagan.

This short but potent book is virtually the first treatment of the scourge of offshore bank accounts. Zucman’s expose maybe read in one or two sittings but contains a wealth of information on an issue discussed but little understood.There is a good reason why his book is so short. There are not a lot of solid information about this area because the subject is, well, hidden. THis is a netherworld of offshore banking, where, in addition to “wealth management,” a euphemism Zucman deciphers as “tax evasion,” the hallmark of this type of banking is secrecy. The wealthy utilize offshore accounts for the express purpose of squirreling away cash and to avoid paying taxes. To hide these assets even further, Zucman reveals that if not holding the deposits of these super-rich, which include not only individuals but corporations and other business entities, these offshore banks will manage mutual fund accounts for their clients held by other off shore entities.Zucman includes the global multinational corporations as the other main participants of this phenomenon. The multinationals use a different tax dodge, typified in a recent news story concerning Apple. Apple created controversy when it was revealed the corporation paid little corporate tax in the US (!), because its profits had been transferred to Ireland, all apparently legal moves. Zucman classifies this as another example of “hidden wealth.”We all pay the price for this skullduggery. The countries that can need the tax revenues the most for infrastructure and domestic purposes are the most prominent victims of these offshore activities. Zucman conservatively estimates that up to one tenth of the world’s wealth are held in offshore accounts, while countries such as Russia have to fifty percent of their GDP in offshore account.The most famous of these offshore accounts are in Swiss banks. Other locations exist in Hong Kong, Singapore, Cayman Islands, the Bahamas, and other locales. Zucman debunks several myths concerning Swiss banks.Zucman shines a light on a particularly nefarious business practice. This is required reading.

Zucman is a very accomplished economist that has creatively and persistently created a giant and rare data base on financial flows among nations. His creative accounting of portfolio investment solves many problems that have eluded the plodding efforts of governments and international financial institutions. His data and analysis is probably the closest we will ever come to a snapshot of offshore money.USA money in Luxembourg is a huge finding. The fact that caribbeans are just a conduit and not a tax shelter or a secret cache is another finding.A must read for investigators wondering where this money is resident. Don't look to Bermuda - look at Europe.

An excellent discussion of how the U.S. Is being deprived of taxes which must be made up by its citizens. To extract the full measure of its significance it must be read carefully. Important aids to understanding are the figures that summarize models in the narrative. Moreover, it provides a very practical method towards achieving the goal of taxing wealth that has been proposed in Piketty's "Wealth in the 21st Century".

Brilliantly written, straightforward and illuminating. Zucman focuses on one of the great challenges of today's economic and social sciences that is barely mentioned by the mainstream media.

Nothing valuable

Es un libro de una lectura relativamente sencilla y que te adentra en el mundo de la evasión de impuestos y las políticas para combatir esta práctica. A raíz del escándalo de los Panama papers, se vuelve un libro indispensable para entender la magnitud del problema. Desconozco si hay traducción al español, pero sería muy bueno que existiera, sobre todo por la desigualdad existente en regiones como América Latina.

I learnt a lot with this book, which is very easy to read, even for foreigners (if I knew Zucman was French I wouldn't have bought it in English though).The explanations are clear and you can find the data online on his website.

Amazing book! Tells the true story about hidden wealth of individuals, corporations and how it affects productive countries. I Certainly suggest it!