No shelter for tax shelters
Friday 7th November 2008, 2:30PM GMT.
Chief Minister Lyndon Trott presents a friendship cup to Tu Guangshao, vice-mayor of Shanghai, during October’s Guernsey delegation to Shanghai. (0666495)
THE vice-mayor of Shanghai is to visit Guernsey and its finance industry.
Tu Guangshao will come to the island later this month to see at first hand the infrastructure and expertise that makes the island a leading international finance centre.
The vice-mayor has met with Guernsey representatives three times already this year during their visits to Shanghai and it was on the last occasion during the island’s delegation to the city in October that he accepted an invitation from Chief Minister Lyndon Trott to extend a trip to the UK by visiting Guernsey.
Deputy Trott said he was delighted Mr Guangshao was able to visit Guernsey as part of his trip to the City of London, although the exact date of the trip was not being made public at this time.
‘There are significant business opportunities for Guernsey in China as a whole and Shanghai in particular.’
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You had better hope LG depositors don’t come across this man when he arrives Mr Trott. They will soon put him off doing any business with this island.
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Why keep ‘banging on’ about LG depositors?
They were aware, at the time of investment, that there was not a deposit protection scheme in place.
The whole situation is very sad, but hopefully things will improve in the fullness of time.
Guernsey is in a difficult position until the protection for depositors scheme is put in place.
However depositing with the susidiaries of the English banks partly owned by the UK government seems safe.
I’m sure the Chinese have been made very aware of the full details!
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Oh Mr B L Cumner-why shouldn’t depositors in Landsbanki ‘bang on’? I’m sure if you had lost your hard earnt savings which were not an investment but placed in a BANK for goodness sake you would bang on and on and on……………..
I’m sure if the Chinese are not aware, aggrieved Landsbanki customers will soon make them aware. Guernsey is not in a difficult position, it is simply an insecure place to put funds through its own failures.
Simple as that!
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B.L. Cummer
Do you believe anybody can afford to trust our regulatory system over here then? How could they exactly? Charity is not a luxury that our politicians are good at apart from when they are on the receiveing end. I will put it to you that it is these very people that are going to sweat. When people make investments it is under the knowledge that it will be returned with a higher return than what they invested, its called interest, less the amount the taxman has an interest in. Our local tax experts will mitigate enough tax avoidance but it will cost those that can afford his services for the advice given.
A casino is the place for a punt. A highly respected, exuse me whilst I am having to hold my ribs whilst laughing, jurisdiction that claims to be regulated to the highest standards have no right to punt off their peoples money whilst at the same time washing their sticky and grubby hands of the whole affair. Whats this exactly? Shying away from their duties in the hope that something magical will happen and things will sort themselves out. We are basically being taxed by incompetents so that they can continue ticking off their wishlists. It is easy to shrug off ones duties but not so easy to remain credible in the hope of finding more suckers. Our regulators will be regulated with a fine tothedcombe that much I am certain of. The states have appointed their own. Lovely for them I’m sure. How is his fee going to be paid exactly. I need to yawn, it will be by us taxpayers yet again. At a time of restraint as well. Very strange. What is the exact amount for his services which our government is spending in the hope he has the answers? I have the answer. Pay what you owe surely. Are we going to be the last place on the planet that can be trusted?
If This appointed person has not been carefully selected? Is he a strong minded man that likes to say it as he sees it. Will we actually get to see or hear anything about the findings at all? This is a fundemental flaw which goes hand in hand with a man on a crusade. It would appear that the people will need to get create their own crusade to get a whiff of their hard earn’t. This will be in a court of law. Not Guernsey and looked into by the very people that tend to have little respect for the way we choose to do things locally. Actually Lots of people are forced into feeling exactly what is needed is a system higher than Guernsey PLC. It seems it will reach satisfctory conclusion. What will the legal cost amount to? What will the knock on damages be to the Islands reputation and constitution? But still we can all remain under our shells cos who knows maybe someone has a magic wand afterall?
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B.L.Cummer it is your kind of remarks that enrage good honest decent people that have lost so much money through no fault of their own. The Islands at present are the only areas that have presided over the worst loss of investors’ money in the Isle of Man and Guernsey with little or no chance of getting their money back. It would not surprise me to see all the people that lost money making representations directly to Levin or get in touch with Richard Murphy to take up their case with his many powerful friends throughout the World especially when they are goaded by insensitive remarks that you and others have made. These people know Guernsey is well managed but hearing this does not help them to get their money back. These are crucial times for the Islands a minute ago on the Daily Politics show it was mentioned again to close the offshore areas unlike in 1997 when the OECD attacked the Islands this time there is not the support as then now is a completely different World.
As mentioned in many postings this could be the final nail in the coffin just look at the news bulletins all over the Offshore areas that all fear the worse, many people have discounted Richard Murphy and his friends well wake up and smell the coffee his friends are now in power. Murphy helped Levin and Prof Reuven S. Avi-Yonah who supported the OECD in their first attacks on the Islands and many other Democrats. The Guardian yesterday mentioned how Senator Carl Levin (D-MI) issued the following statement in October regarding regulating offshore jurisdictions:” As global leaders meet to strengthen international financial regulation, we have much to fear they say it is urgent that they address the secretive and largely unregulated world of offshore jurisdictions. Remember, Barrack Obama has co-signed the Stop Tax Haven Abuse Act with Carl Levin. Vince Cable says shut tax haven operations
Bloomberg report:
The U.K. Treasury could tell banks receiving investment from the government to close their operations in offshore tax havens, said Vince Cable, a Liberal Democrat who speaks on finance.
He said It is “totally inappropriate for banks funded by the taxpayer to be systematically avoiding British tax or helping customers to do so,” Cable said in an interview. “The anomaly of the nationalized banks will bring this issue to a head.”
The Isle of Man Bank is now owned by…H M Government of the UK The Isle of Man Bank is the sole note issuer for the Isle of Man. And it is owned by the Royal Bank of Scotland. And so it now owned by HM government of the UK
Let us sympathise with these unfortunate people because any of us could be in the same situation. This is not the time to antagonise countries that are itching to close us down.
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Dominic
I can’t understand why you take so personal offence at the November 8 comments of B L Cumner.
All five points apart from the last appear to be true. The last point might or might not be true.
I can’t see why the comments of B L Cumner “antagonise countries that are itching to close us down”. Four are fact, one is speculation.
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Domiic
Spot on there GEEZER. We won’t be asked for consent we are going to be told how things are going to shape up. Long overdue in my book. Those that stand to lose the most. Put your enterprise hats on. Turning on the tears might win over a sympathetic ear or two? I doubt it though more upbeat lipservice which we all are growing so fund of!
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STEPHEN JOHN
I would of thought my posting was self explanatory people are deluding themselves if they can not see that the offshore areas are under more pressure than they have ever been. To have an attitude of investors should have known better will not wash with individuals that have lost a great deal of money inside and outside the Island. I am surprised the investors have not contacted
Tax Justice Network, run by the Socialist Fabian Society from England, and with ATTAC – the French and German anti globalisation group who demonstrate all over the world? Their aim according to their web site is to counter ‘harmful trends in global taxation, which threaten states’ ability to tax the wealthy beneficiaries of globalisation’. Tax Justice Network arose from meetings at the European Social Forum in Florence in late 2002. These people have a great deal of clout in Europe and America and often use remarks made mainly by Politicians in reports to stoke the fire.
Europe and America could be one solid socialist block that fact can not be ignored and the World order if it has the inclination could crush the offshore areas
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Mr Cumber said: “Why keep ‘banging on’ about LG depositors? They were aware, at the time of investment, that there was not a deposit protection scheme in place.”
He seems to forget that the vast majority deposited their savings in the Cheshire in Guernsey – NOT Landsbanki – knowing that building societies are ‘safe as houses’.
How could they possibly have imagined that the GFSC would permit the transfer of their hard-earned savings to an Icelandic bank that they had never heard of?
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Dominic
B L Cumner was not referring to international perception but to plain facts re deositors in Landsbanki Guernsey.
Offshore perception is something different.
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The depositors, of which I am one, will certainly not stop ‘banging on’. We have every cause to continue to give Guernsey bad press.
The LG action group will doubtless be sending a few e-mails to Tu Guanshao to let him know how safe his cash might be in the island, and how well the financial system is regulated.
We are not going away Mr Trott.
‘Leading International Financial Centre’,I don’t think so any more…and if the Brown-Darling double act have their way ??
If I worked in the financial industry in Guernsey I might just be thinking about a bit of job-hunting.
What we really need is support from the Islands before it is too late, not scorn, we have been robbed of our savings.
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first of all, dominic and paul, have you ever heard of the word paragraph? i suggest you use them in future.
I am in agreement with BL Cumner. people knew cash wasn’t guaranteed back then so I dont see why they can moan about it now.
i didnt put any money in LG because I wasn’t desperate enough for a high interest rate. I’m not saying you deserved to lose your savings, or should have lost your savings, but if you had left money in lloyds/hsbc/anywhere else then there would be no problem.
and I dont see how giving Guernsey bad press is going to help the situation at all. if everyone takes their money out of guernsey (which wont happen anyway), the island will be in trouble. everyone will suffer, not just those in the finance industry.
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Can someone explain how the GFSC authorised transfer of funds from Cheshire in Guernsey to Landsbanki ?
The GFSC claim they are not responsible for the loss of funds so what precisely are they doing authorising (ie. giving approval) of funds being transfered?
If this isn’t a rubber stamp operation of no importance whatsoever why do they have to authorise the transfer!
Did any of these transfers authorised by the GFSC take place within the last 18 month period in which the GFSC claimed they knew Landisbanki was going to go bust (or teetering on the brink of)?
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HEALTH WARNING Investing in Guernsey can seroiusly damage your wealth
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Excellent point, Johnny B.
Bob, I most certainly did not deposit my hard-earned savings in LGL. I deposited them in the Cheshire, precisely because I’ve always been a very conservative saver and have always preferred to stick to building societies, which don’t have ever-demanding shareholders.
The money WAS guaranteed: by the Cheshire Building Society in the UK via a parental undertaking.
How could I ever have imagined that the GFSC would permit the Cheshire to ‘sell’ my hard-earned savings to an Icelandic bank that I’d never heard of.
However, I was indeed foolish not to close my account the moment I heard that the GFSC had sanctioned the ‘sale’ of my hard-earned savings to an unknown Icelandic bank.
Now the GFSC has commissioned an expensive report to try and justify the unjustifiable.
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