London, England (Accredited Times) – One of the major problems progressives have faced in recent years is that people simply don’t pay their taxes. Progressives pass laws redistributing income, but people simply don’t cooperate. The worst problems have arisen in Africa, Asia, Latin America, and Eastern Europe — where progressive social programs are needed the most. Sadly, because many taxpayers refuse to pay taxes in these regions, their governments often spiral into massive debt problems, resulting in currency inflation and child hunger. Women and minorities are traditionally hardest hit.
But now progressives have a new critical tool in their belt: a British law called the Criminal Finances Act. Under the Criminal Finances Act, the U.K. government can prosecute any organization anywhere around the world for “failure to prevent” both U.K. and “foreign tax evasion.” The law explicitly has “extra-territorial application and jurisdiction,” specifying that it is “immaterial” whether “any relevant conduct” “takes place in the United Kingdom or elsewhere.”
In other words, if an organization, like a bank, has any indication that someone might be evading taxes in Russia, North Korea, Argentina, Guinea, or Venezuela, yet fails to stop it, then that organization would face criminal liability. The organization does not have to be based in the United Kingdom; the law applies where an organization conducts any business at all in the United Kingdom or where any part of the conduct has anything to do with the United Kingdom. Given London’s role as a major financial center, the law is shockingly broad in scope.
Conservative Prime Minister Theresa May pushed strongly for the law, which received Royal Assent on April 27, 2017. The law repeals the long-standing common law rule against using domestic courts to enforce foreign tax laws. The law takes effect on Saturday.
Bankers, Accountants, And Lawyers Are Now Legally Required To Spy On Customers
Major institutions affected include banks, law firms, accounting firms, and other similar professional organizations, which are now legally required to spy on their customers to stop tax evasion. Under guidance issued by the U.K. government, “failure to prevent” foreign tax evasion would include:
- Providing introductions or acting as a broker for someone who ends up evading foreign taxes;
- Providing investment planning advice or advice on organizational structures, which are then used to evade foreign taxes;
- Setting up organizational structures, which are then used to evade foreign taxes;
- Maintaining infrastructure services that are used to evade foreign taxes (including “nominee services,” “legal services,” “IT structures,” “virtual offices,” or “company director services”);
- Providing financial assistance for those who evade foreign taxes (including “currency conversions,” “providing client accounts and escrow services” and “moving money through financial instruments”); and
- Providing payroll services for those who evade foreign taxes.
Given the broad scope of the law, organizations are effectively guilty if they have anything to do with someone who ends up evading foreign taxes. At that point, the only way for an organization to save itself would essentially be to take advantage of the law’s affirmative defense — which allows an organization to escape criminal liability if it has sufficient “prevention procedures” in place. In effect, organizations must establish robust monitoring networks to stop any suspicious activity.
Bitcoin And Gold On The Ropes?
Although the law does not directly address cryptopcurrencies, Bitcoin and other cryptocurrencies will likely face significant challenges under the law. After all, why would anyone use a cryptocurrency except for nefarious purposes, like tax evasion? Financial institutions may feel pressure, sooner or later, to implement procedures requiring full disclosure and monitoring of anyone who uses Bitcoin. Failure to do so could result in criminal liability.
Gold faces similar issues. After all, gold, which cannot be eaten, is primarily hoarded for tax evasion purposes. Financial institutions will likely feel significant pressure to monitor gold-related transactions for similar reasons.
The Criminal Finances Act Is A Huge Win For Progressives
Overall, the Criminal Finances Act is a huge win for progressives. The law should result in more taxes and greater control over financial transactions. The internationalization of law is now proceeding at an amazing pace. The best part about it is that that orange bastard Donald Trump and his gun-toting, Bible-thumping friends can’t do a damn thing about it. Global governance works.
Theresa May is doing a surprisingly good job as Prime Minister. Recently, May smacked around Brexit chumps like the bitches they are — affirming that she has no plans to remove Britain from the European Union until at least 2021, by which time the Labour Party will likely be in power and will likely call for another Brexit vote (or substantially water down any so-called “Brexit”). Now May has made Britain the tax enforcer for countries like Argentina, which has 137.3% total tax rates and which continues to claim Las Islas Malvinas for itself.
May is exactly the kind of conservative leader that we need. We can only hope that a real conservative like Jeb Bush or Lindsey Graham challenges Donald Trump in the 2020 election in the United States. Mainstream politicians need to unite in favor of global legislation like the Criminal Finances Act.