Tax Exile On Main Street

A list of 2,000 Greeks with Swiss bank accounts has been published.  Have the Greek authorities responded by launching an investigation into what is clearly (let's be sensible) a case of mass tax evasion?  Don't be stupid.  They've arrested the journalist who published the list.

http://www.bbc.co.uk/news/world-europe-20116548

Greece is in trouble due, in part, to tax evasion.  The authorties are responding, in part, by cracking down on it and increasing taxes.  Except for those that can afford to have Swiss bank accounts apparently.  The list is reported to include politicans and business men.  Well duh!

Of course, this list is just the tip of the iceberg, and only includes accounts at HSBC.  It seems that the list was originally leaked by an employee (give that man a medal) and found its way to the Greek authorities two years ago.  The apparent lack of follow up action is surely justification for the journalist's actions.

The authorities have responded to the latest reporting by saying there is no evidence of illegal activities by those on the list.  Yeah, and there is no evidence that the Pope is responsible for African AIDS victims.

Two points.  One - You will not find any evidence of anything unless you look for it.  Two - even if there is no evidence of a 'crime', there is the more important question of moral responsibility.  There is really only one reason people hold Swiss bank accounts - because they wish to hide their assets from someone.  That can be due to illegality at some stage in the cash trail, whether simple tax evasion, corruption, fraud or organised crime.  However, it can also be due to embarrasment.  For example, a current or former Government minister wishing to hide the fact that he earns small fortunes from lobbyists and special interest groups.  No doubt it can also just be due to 'prudent' tax planning, but how many of these latter people would be happy for normal tax payers to know that they do not pay as much tax as the spirit of their country's legislation expects?

The fact is that if you have a Swiss bank account you are either up to something dodgy or you are avoiding contributing your fair share to society.  Or Swiss.

If the Greek authorities fail to ackowledge this fact and act on it, how can anyone trust them to resolve their country's financial problems?  And if their only response seems to be to shoot the messenger, why should we trust them at all?

Thanks to John Foxx for his twist on The Rolling Stones' album title.