1. Many First-Hand Debt Audits Citibank (LA) UBS (world) JP Morgan (Brazil)…. Chase (Venezuela, Iran) Deutsche Bank (Iraq) Chile privatization fiasco (BT) Sandinista debt deal… Haiti and West Africa (BNP) Chief Justice Brazil’s S Ct. Drinking with Lula Goni’s gas tale Carlos Andres’ offshore fund… Noriega’s phone calls… Stroessner’s phone calls Nixon’s offshore accounts 1 (c)JSH/ TJN Intl 2011

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3. Tax Justice International Blum – 1980s Barclays case, unitary taxation Henry – 1980s: numerous articles, books TJN Intl founded (2002 -); TJN-US (2005-) Murphy/Christensen 2003– country X country reporting David Spencer – articles on Intl tax, TP standards Nick Shaxon: Treasure Islands (2010) Partners: ActionAid, ATAF, CCFD, Eurodad, GFI, etc. Estimates/ quantitative research o “Mapping Financial Secrecy” (2009, 2011): secrecyjurisdictions.com o “Tax Loss” (Oxfam GB) (2009) o “Price of Offshore” (2005, 2011) Task Force on Financial Integrity & Economic Development – founding partner (2008-) For more info: o http://www.taxjustice.net/cms/front_content.php?idcat=139 http://www.taxjustice.net/cms/front_content.php?idcat=139 o http://www.secrecyjurisdictions.com http://www.secrecyjurisdictions.com

4. Battle lines – International Tax “Tax competition” ideology Corporate abuses o Transfer pricing o Investment/ corp tax o Intellectual property o Financial chicanery o Industry focus: (extraction, software, pharma, cigarettes, etc.) “Pirate banking” abuses NRAs Hidden offshore income Rise of secrecy jurisdictions o “Offshore” o “Onshore” Enablers o Accounting firms o Law firms o Major banks 4(c)JSH/ TJN Intl 2011 * Need for strong states with fair tax base In-country policies Tax structure Transfer pricing rules Beneficial ownership NRA taxation Penalties Cross-country collaboration Info exchange Enforcement Anti-haven Withholding tax Global assistance Training/ assistance Prevention

5. TJN’s Core Program Key problems Rise of “offshore” evasion – Global elite – Trans-nationals “Enablers” – Secrecy Jurisdictions – Pirate banking – Hedge funds – Intl law firms/ accounting firms Tax/ bank reform Remedies Automatic tax info exchange Country x country reporting New standards for transfer pricing (beyond OECD) Beneficial ownership disclosure Enabler regulation New tax systems (c)JSH/ TJN Intl 20115

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7. Government revenue + taxes by country/ group (Median % of official GDP, 2000-09 ) Source: World Bank data (2011), JSH analysis © JSH 2011 Perspective

8. Sizing the “Offshore” Elephant 8(c)JSH/ TJN Intl 2011

9. 9 If you cannot express it in numbers, your knowledge is of a meager and unsatisfactory kind. -- Lord Kelvin, 1889

10. Unrecorded Net Capital Outflows from Latin America, 1970-2009 (Real Value of Cumulative Net Outflows by Period, $2000 Billions) Source: data from World Bank/ IMF (1979-2008); JSH analysis S =$354.4 S =$275.3  =$267.1 S =$216.8  $62.5.  $ 33.4  $ 22.6  $32.3  = $ 115.8 **30 other Latin American and Caribbean countries   $1380.2 (Real $2000), Unrecorded CF Outflows LAC REGION, 1970-2009 (c) JSH 2008, 2011 Huge debt- and oil-financed real flight flows by region… 10 (c)JSH/ TJN Intl 2011

11. Latin America -- Earnings from Unrecorded Offshore Assets 1970-2009 (Real Value by Period, $2000 Billions) Source: World Bank, IMF, central banks (data), JSH analysis S =$354.4 S =$275.3  =$256.5 S =$216.8  $214.8.  = $258.8 **34 other Latin American and Caribbean states   $1457.8 (Real $2000) Offshore Earnings LAC REGION, 1970-2009 (c) JSH 2008, 2011 11 (c)JSH/ TJN Intl 2011  = $407.3

12. (c)JSH/ TJN Intl 201112

13. (c)JSH/ TJN Intl 201113

14. External Debt Vs. Estimated Flight Wealth, By Key Country - ( 2007 $Billions) Source: data from IMF/World Bank (2008); JSH analysis © JSH 2008 14 (c)JSH/ TJN Intl 2011

15. 15(c)JSH/ TJN Intl 2011

16. Original Unrecorded Capital Outflows From FSU, 1992-2009 ($2000 Billions) Source: data from IMF (2011), World Bank (201); JSH analysis Revised 10-08 © JSH 2011  $809.6, FSU COUNTRIES 1992-2009 16(c)JSH/ TJN Intl 2011

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18. Global Flight Wealth, Vs. All Developing Country Debt** (1975-2003) (Billions US $Current) Source: data from IMF (2005), World Bank (2005); JSH analysis First crossover: 1989-90  Including China Flight Wealth “Surplus” © JSH 2008 18(c)JSH/ TJN Intl 2011

19. 19 (c)JSH/ TJN Intl 2011

20. 20 (c)JSH/ TJN Intl 2011 Preliminary