Netherlands provides legal loopholes for multi-national corporates to escape paying tax - by Danny Hakim

European stopping tax evasion

American companies have plowed more money into the Netherlands than any other country in the world — for five years running.

This does not reflect a new fascination with pot or pancakes. It is about the taxes, or lack of them.

The laws in Netherlands shield a variety of profits from taxation, making it attractive for big multinational companies like Starbucks, Google and IBM to set up offices. Even rock stars like the Rolling Stones and U2 have taken advantage of Dutch tax shelters.

The same goes for Luxembourg, Bermuda, Ireland and the British Caribbean countries like the Cayman Islands. Along with the Netherlands, those places rank among the top destinations for foreign direct investment from the United States, according to a review of data collected by the Bureau of Economic Analysis that shows how entrenched tax avoidance strategies have become.

It is the latest case to focus on favorable and often secretive tax arrangements between big multinationals and tax authorities — deals struck between Apple and Ireland, and Amazon and Fiat with Luxembourg. European authorities have also asked countries about arrangements made with a number of other companies, including Microsoft.

But regulators, if they even make a truly determined effort, face an uphill battle in changing the system.

Companies, for one, are doing their best to minimize the fallout.

Starbucks hired RLM Finsbury, a crisis communications firm, as opposition to the company’s tax practices began building in Britain, its largest European market. This year, Starbucks decided to move its regional headquarters to London from Amsterdam as protests grew.

Apple recently tapped Fipra, a prominent lobbying firm with expertise in competition policy and an affiliate of RLM Finsbury, to bolster its defenses in Europe. Apple also hired a top lawyer from the branch of the European Commission investigating it in the tax case.

The financial bite from the European investigations may be limited. American corporations could potentially get credit on their tax bills back home even if they lose their cases, experts said, because the companies are likely to pay back taxes rather than face a fine.

The Tax Attraction Between Starbucks and the Netherlands - NYTimes.com

Italy: Berlusconi Tax-Fraud Conviction Upheld

An appeals court in Milan has upheld the tax fraud conviction and four-year prison sentence against Silvio Berlusconi .

The case involving his television company could see the former Italian Prime MInister barred from public office for five years.

The penalties however, would only come into force if the 3 stroke process allowed under Italian law has been exhausted.

In other trials over the years, Mr Berlusconi has been accused of charges including accounting fraud, perjury, bribery and corruption all of which he has denied and has been been acquitted or let off under statutes of limitations.

In October, a court convicted the 76 year old media mogul in a scheme that involved inflating the price, his Mediaset media empire paid for TV rights to U.S. movies and pocketing the difference.

Read more: Berlusconi Tax-Fraud Conviction Upheld | euronews, world news

Forbes: Spain investigates 100 over Liechtenstein tax fraud

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Spain investigates 100 over Liechtenstein tax fraud

- Spanish authorities are investigating about 100 people suspected to be involved in the growing Liechtenstein tax evasion scandal, El Pais newspaper reported. Quoting investigators, the newspaper said the names of Spaniards who had taken part in the fraud had been handed over by the German government which paid an informer for a list of people using the tiny principality to hide their wealth. El Pais said there were 160 people from Germany, 200 from France and 150 from Italy on the list. No names were given however.