Western tax havens slated as corrupt

Duncan Campbell in London

September 5, 2006

BRITAIN, the United States and Switzerland are among the world's most
corrupt countries, a tax expert says.

The failure of these and other developed countries to clamp down on offshore
tax havens is responsible for more hardship than any corrupt acts by Third
World leaders, John Christensen, formerly an adviser to the government of
the Channel island of Jersey and now director of the Tax Justice Network,
told the Economic Geography Research Group conference on Sunday.

"I would place the United Kingdom high on the list of most corrupt
countries," he said, citing its role as a tax haven and a defender of the
tax haven role of its overseas territories and dependencies, as well as its
"dismal role in undermining the effectiveness" of the European Union's
attempts to close tax loopholes.

Mr Christensen said there had been too much emphasis on corruption in the
Third World and not enough on the abuse of offshore tax havens by the
wealthiest nations.

Transparency International, a pressure group campaigning against corruption,
reinforced stereotypes by depicting African nations as the most corrupt, he
said.

By contrast, Mr Christensen said, many of the countries the group identified
as least corrupt were offshore tax havens, including important centres such
as Singapore, Switzerland, Britain, Luxembourg, Hong Kong, the US, and
Belgium.