The Adriatic Institute Welcomes Chancellor Osborne’s G7 Statement to Affirm Tax Competition which Promotes Growth and Priority Pledge to Tackle Tax Evasion
Adriatic Institute Calls the Attention of G7 to The Balkan Region’s $111.6 Billion in Illicit Financial Outflows via Crime, Corruption and Tax Evasion which left for Foreign Accounts during 2001-2010
Media contact: AdriaticIPP@aol.com
RIJEKA, CROATIA, MAY 13, 2013 – The Adriatic Institute for Public Policy welcomes UK Chancellor of the Exchequer George Osborne’s statement to affirm tax competition which promotes growth and the formal G7 pledge to tackle tax evasion as a priority. The Adriatic Institute calls the attention of the G7 to review the Balkan Region’s $111.6 billion in illicit financial outflows via crime, corruption and tax evasion which left the region for Western foreign banks and beyond during 2001-2010 (source: Global Financial Integrity’s 2012 annual study). During this same period, billions of Western taxpayer aid have been sent to the Balkans with no results.
“It is incumbent on all elected representatives from the West’s strong rule of law nations who have authorized billions of dollars in taxpayer funds for the Balkans to address the Balkan region’s criminal activities including $111.6 billion illicit financial outflows via crime, corruption and tax evasion during 2001-2010 and even larger amounts since 1991,” said Natasha Srdoc, chairman, Adriatic Institute for Public Policy. “The region’s vast amounts of illicit enrichment has blocked structural reforms, especially in establishing the rule of law and protection of property rights. Rampant corruption and the ills of illicit financial outflows have oppressed Balkan citizens who do not have protection of property rights, the rule of law and economic certainty. Poverty is on the rise among 50 million citizens living on Europe’s continent. Tax evasion in the Balkans has hemorrhaged the economies and blocked structural reforms.”
The Adriatic Institute calls for the G7 nations to address alleged criminal wrongdoing by banks in Austria and Liechtenstein which have provided an illicit haven for the Balkan region’s corrupt politicians and organized crime networks and confront the Balkan Route which is a threat to both Balkan citizens and the West.
Late last month, published media reports stated that UK Prime Minister David Cameron called for the G8 to ban anonymous shell companies.
UK Chancellor of the Exchequer George Osborne’s statement at the G7 meeting which were delivered on May 11, 2013 at the Hartwell House:
“Finally, we discussed the need to ensure that international tax rules are fit for the modern global economy. For Britain, I am committed to a competitive tax system that promotes growth, but I’m also determined that tax that is owed must be paid. That is why we’ve made this a priority for our parallel presidency of the G8, and today we all agreed on the importance of collective action to tackle tax avoidance and evasion. This is a key priority for David Cameron and for myself, and we’re absolutely determined to make progress this year with the British presidencies of both the G7 and the G8, including addressing base erosion and profit shifting.”
About The Adriatic Institute for Public Policy
The Adriatic Institute for Public Policy (AI) is an independent think tank founded in 2004 in Rijeka, Croatia and dedicated to strengthening the rule of law and advancing economic freedom through advocating market reforms in Croatia and southeast Europe. AI promotes innovative thinking and advancing principled and pro-growth solutions that have been successfully implemented in eastern Europe's post-communist countries. The organization with its engaged advisors and research fellows has dedicated its resources to sponsor research, conferences and strategic events that augment the competition of ideas by featuring experts in the fields ranging from economics to security. The independent think tank emphasizes the importance of principles for free-enterprise based on the rule of law, an independent judiciary, protection of property rights and economic freedom. Relevant links:
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To schedule an interview with Natasha Srdoc, Boris Divjak or other spokespersons from the Adriatic Institute, contact: AdriaticIPP@aol.com