Tag Archives: whistleblowers

Explore the Documents: Luxemborg Leaks Database: Under ‘Retail’ we find Proctor Gamble International (Thrive Movement?) tax migration from Bermuda to Luxemborg? $50 Billion? And others…

ICIJ’s Luxembourg Leaks investigation is based on a confidential cache of secret tax agreements approved by Luxembourg authorities that provide tax-relief for more than 350 companies around the world. These private deals are legal in Luxembourg.

In this interactive application ICIJ has created a visual and searchable database of 548 tax rulings that have been approved by Luxembourg officials with a stamped and signed confirmation letter. In addition, ICIJ is publishing 16 other documents — such as corporate tax returns — related to companies in Luxembourg.

On December 9, 2014, ICIJ released on this database a small new batch of Luxembourg tax rulings. ICIJ received the documents after the publication of the first installment of stories on Nov. 5.

The new documents are Luxembourg tax rulings sought by a variety of accountancy firms on behalf of corporate clients from around the world. The files cover the period from 2003 to 2011. ICIJ is only publishing the rulings that were reported on by ICIJ and its media partners and that bear evidence that they were approved by Luxembourg authorities.

Source: http://www.icij.org/project/luxembourg-leaks/explore-documents-luxembourg-leaks-database


Is Your Head Spinning? 5 Tips to Understand the ‘Lux Leaks’ Files

Source: http://www.icij.org/project/luxembourg-leaks/your-head-spinning-5-tips-understand-lux-leaks-files

Want to see how global companies can avoid billions in taxes by routing their profits through Luxembourg? All the information is there in the leaked documents, but understanding the complex structures companies set up is not an easy task. Here are a few tips on how to read the documents and knowing what to look for.

  1. Start with the pictures (graphs and charts)

In every ruling there’s a simplified structure chart of the company and the relevant entities they use to lower their tax bill. In most cases there are actually two charts: the current structure and the one the company wishes to set up. These don’t include every subsidiary in every country. But that’s why they’re so helpful: they will usually only show the subsidiaries that are relevant for the Luxembourg tax authorities. So now you know where to look when tracking what the company is doing to avoid taxes.

There’s a catch though: in a lot of these documents the advisors of PricewaterhouseCoopers use code names for subsidiaries, especially those outside of Luxembourg. For example, if a Dutch company is part of the structure, the standard code name would be DutchCo. Even though you wouldn’t have the name of the company, you know there’s a trail going from Luxembourg to The Netherlands.

Don’t worry yet if the structure chart doesn’t seem to make any sense, or just blows you away with its complexity, because now it’s time for step two…

  1. Back to the start

When you have a basic idea of the structure, go back to the first page of the document. This is where the tax advisors introduce the company and explain step by step the structure they want to set up. When laying out a certain step – for example, the company wants to give out loans from Luxembourg to subsidiaries around the world – the advisors will then explain how they think the tax authorities should view this. It’s not an easy read, but in their own way they will explain why it makes sense to set up the structure as proposed.

One of the main benefits of the Luxembourg tax system is the treatment of interest. Companies registered in Luxembourg are exempt from tax on interest income. So it makes sense for multinationals to structure their operations in such a way that profits from other countries can flow into Luxembourg as interest.

Look for signs that foreign profits get transformed into interest when going into Luxembourg. A clever way to do this is by so called hybrid loans. These have all the characteristics of equity – and are treated as such in most countries – but Luxembourg approves these as debt for tax purposes. A lot of companies use profit participating loans, where a variable interest rate on the ‘loan’ is set to be as high as annual profits of the subsidiary.

  1. Royalties

Another perk of the Luxembourg tax system is an 80 % tax exemption on all income from intellectual property. Look for brand names, patents, and production and distribution rights in the documents. Foreign subsidiaries will have to pay for the use of these, and the advisors from PwC explain in the document why it makes sense to charge for it.

  1. Take a step back

Is your head spinning already? Remember that these documents were written by highly specialized tax advisors who know all the ins and outs of different national and international tax laws. It’s impossible to understand everything in them, unless you team up with an expert in international tax.

When things stop making sense – take a step back and think about the company proposing these structures. What are they making and selling? Is it logical for them to be in Luxembourg or to have money routed there? The details of tax planning are very difficult, but the general idea is simple: move your money away from places with high tariffs into places with lower tariffs or a much smaller tax base.

One final tip: for just a few euros you can access the annual accounts of Luxembourg companies via the corporate registry. These documents are useful to see how the planned investments have turned out for the company and what the effective tax rate is.

Jan Kleinnijenhuis is a journalist with Dutch newspaper Trouw. You can read more of his stories from the Luxembourg Leaks project at Trouw.nl.


Procter & Gamble – 2010 tax ruling (March)

Source: http://www.icij.org/project/luxembourg-leaks/explore-documents-luxembourg-leaks-database


Tax ruling date: 9 March 2010

Accounting firm: Pricewaterhouse Coopers

Associated countries: Belgium, Bermuda, Italy, Switzerland, United States

Intended investment:$50 billion

Industries: Manufacturing, Retail

Luxembourg subsidiaries involved in the tax ruling:

Procter & Gamble Financial Services S.A.

Procter & Gamble International S.à.r.l.

Procter & Gamble Luxembourg Global S.à.r.l.


Procter & Gamble – 2010 tax ruling (January)

Tax ruling date: 27 January 2010

Accounting firm: PricewaterhouseCoopers

Associated countries: Belgium, Italy, Switzerland, United States

Intended investment:$3.91 billion

Industries: Manufacturing, Retail


Procter & Gamble – 2009 tax ruling (May 12)

Tax ruling date:12 May 2009

Accounting firm: Pricewaterhouse Coopers

Associated countries: Belgium, Canada, Ireland, Switzerland, United States

Intended investment:$18 billion

Industries: Manufacturing, Retail


There are a couple more…

On 11 July 2013, Pope Francis issued a Motu Proprio on criminal law matters in the Vatican

It is now 2years since the Official Vatican Network announced Pope Francis’ motu proprio, the most powerful legal instrument issued by a Pontificate of the Roman Catholic Church; this particular document will go down in history as one of THE documents that initiated the re-shaping of the world, giving Transnational Criminal Organizations 3 years to clean up their act, which includes the Holy See;

This does not mean that We, the People will absolve Pax Romana, in fact, it gives us the power to institute proceedings against pirates and imposters; the clock is ticking … 365 days … and counting [pictures with subtext added]

St Peter's Square

What is an obelisk, 4 pointed star of baal, 8 pointed star of ishstar doing in St. Peter’s square?

Pope Francis issues Motu Proprio on criminal law matters in Vatican

2013-07-11 Vatican Radio

(Vatican Radio) Pope Francis has issued a Motu Proprio on criminal law matters and administrative sanctions within Vatican City State and the Holy See. In a statement by the Holy See’s Press Office, it was announced that on this same date, the Pontifical Commission for Vatican City State has adopted the following laws:

Law No. VIII containing Supplementary Norms on Criminal Law Matters; Law No. IX containing Amendments to the Criminal Code and the Criminal Procedure Code;Law No. X containing General Provisions on Administrative Sanctions.

The note from the Holy See Press Office goes on to clarify the following points:

The Motu proprio makes the criminal laws adopted by the Pontifical Commission for Vatican City State applicable also within the Holy See.

The criminal laws adopted today are a continuation of the efforts to update Vatican City State’s legal system, building upon the measures adopted since 2010 during the pontificate of Benedict XVI.

These laws, however, have a broader scope, since they incorporate into the Vatican legal system the provisions of numerous international conventions including: the four Geneva Conventions of 1949, on the conduct of war and war crimes; the 1965 Convention on the elimination of all forms of racial discrimination; the 1984 Convention against torture and other cruel, inhuman or degrading treatment or punishment, the 1989 Convention on the rights of the child and its optional protocols of 2000.

 Vatican coin

Chemtrail on 1985 100 lire coin?

Of particular note in this context is the introduction of the crime of torture and a broader definition of the category of crimes against minors (including: the sale of children, child prostitution, the recruitment of children, sexual violence and sexual acts with children, and the production and possession of child pornography).

A section of the legislation introduces a list of crimes against humanity, in particular, the crimes of genocide and apartheid, following broadly the definitions adopted in the 1998 Statute of the International Criminal Court. The section of the Criminal Code regarding offences committed in the exercise of public administration has also been revised in light of the 2003 United Nations Convention against corruption. With regard to penalties, that of life imprisonment has been abolished and it has been replaced with a maximum penalty of 30 to 35 years of imprisonment.

 gov official

In line with the most recent developments at the international level, the new legislation also introduces a system of penalties for juridical persons who profit from the criminal activities of their constituent bodies or personnel, establishing their direct liability and providing as penalties a set of interdictions and pecuniary sanctions.

In the area of criminal procedure, the general principles of presumption of innocence and due process within a reasonable time have been recognized explicitly, while the power of the judicial authorities to adopt precautionary measures has been increased by bringing up to date the provisions for confiscation and the freezing of assets.

Also of importance is the modernization of the rather dated norms governing international judicial cooperation, with the adoption of measures in line with the standards of the most recent international conventions.

The law on administrative sanctions is of a general nature so as to serve as a common framework that provides for the possibility of sanctions in different areas intended to promote respect for the norms, to render them effective and to protect the public interests.

As a whole, these normative efforts form part of broader process aimed at modernizing further the Vatican legal system with a view to enhancing its consistency and effectiveness.

The following is an English translation of Pope Francis’ Apostolic Letter Motu Proprio on the jurisdiction of Judicial Authorities of Vatican City State in criminal matters (Full Text)

In our times, the common good is increasingly threatened by transnational organized crime, the improper use of the markets and of the economy, as well as by terrorism. It is therefore necessary for the international community to adopt adequate legal instruments to prevent and counter criminal activities, by promoting international judicial cooperation on criminal matters. In ratifying numerous international conventions in these areas, and acting also on behalf of Vatican City State, the Holy See has constantly maintained that such agreements are effective means to prevent criminal activities that threaten human dignity, the common good and peace. With a view to renewing the Apostolic See’s commitment to cooperate to these ends, by means of this Apostolic Letter issued Motu Proprio, I establish that: 1. The competent Judicial Authorities of Vatican City State shall also exercise penal jurisdiction over: a) crimes committed against the security, the fundamental interests or the patrimony of the Holy See;b) crimes referred to: – in Vatican City State Law No. VIII, of 11 July 2013, containing Supplementary Norms on Criminal Law Matters;- in Vatican City State Law No. IX, of 11 July 2013, containing Amendments to the Criminal Code and the Criminal Procedure Code; when such crimes are committed by the persons referred to in paragraph 3 below, in the exercise of their functions;c) any other crime whose prosecution is required by an international agreement ratified by the Holy See, if the perpetrator is physically present in the territory of Vatican City State and has not been extradited. 2. The crimes referred to in paragraph 1 are to be judged pursuant to the criminal law in force in Vatican City State at the time of their commission, without prejudice to the general principles of the legal system on the temporal application of criminal laws. 3. For the purposes of Vatican criminal law, the following persons are deemed “public officials”: a) members, officials and personnel of the various organs of the Roman Curia and of the Institutions connected to it.b) papal legates and diplomatic personnel of the Holy See. c) those persons who serve as representatives, managers or directors, as well as persons who even de facto manage or exercise control over the entities directly dependent on the Holy See and listed in the registry of canonical juridical persons kept by the Governorate of Vatican City State;d) any other person holding an administrative or judicial mandate in the Holy See, permanent or temporary, paid or unpaid, irrespective of that person’s seniority. 4. The jurisdiction referred to in paragraph 1 comprises also the administrative liability of juridical persons arising from crimes, as regulated by Vatican City State laws. 5. When the same matters are prosecuted in other States, the provisions in force in Vatican City State on concurrent jurisdiction shall apply. 6. The content of article 23 of Law No. CXIX of 21 November 1987, which approves the Judicial Order of Vatican City State remains in force. This I decide and establish, anything to the contrary notwithstanding. I establish that this Apostolic Letter issued Motu Proprio will be promulgated by its publication in L’Osservatore Romano, entering into force on 1 September 2013. Given in Rome, at the Apostolic Palace, on 11 July 2013, the first of my Pontificate.

Our comment: Without prejudice, we will be bringing a complaint before the International Tribunal for Natural Justice (www.itnj.org) regarding the lawfulness of Roman Dutch Law on the land of Southern Africa when it violates natural law and natural rights and has NO jurisdiction on the land; in addition, we also have questions to ask Pope Francis regarding the role of the Holy Roman Empire in historical and current crimes against We, the People such as breach of contract, trust, barratry, poverty and violations of non-derogable living rights;

All rights reserved, in peace, bt

PS: Interestingly, 11th of July was the day a bankrupt strawman was created in a NAME resembling the author’s when his mother berthed him and surrendered him as ward of the state; he wishes to thank Francesco for his co-operation in our freedom;