tax evasion – praag.org

Black French singer loses appeal against Marine Le Pen

Black French singer and celebrity Yannick Noah lost his diffamation case against Marine Le Pen, leader of the Front National. Noah sued Le Pen because she had called him a “tax fugitive” on television. According to Marine Le Pen, he had “stashed” his money abroad. She made that allegedly defamatory statement on 9 March 2012 during a discussion programme on the pay TV channel Canal+. The talk show was on the contribution made by French immigrants such as Yannick Noah, Zinedine Zidane and Omar Sy.

Answering the question whether immigration was an opportunity for France, Marine Le Pen responded: “Two tax fugitives out of three, that’s not bad,” before referring specifically to Yannick Noah. “That means, instead of paying his taxes in France, well, this gentleman sees fit to give us moral lessons… giving us lessons on charity and sharing while he shares nothing, his money is stashed abroad and does not benefit the unfortunate French,” she declared. At the time she was a French presidential candidate.

As opposed to the argument advanced by the singer, “the statement does not imply any punishable fiscal fraud committed by him”, according to the judges of the 17th chamber of the correctional tribunal of Paris in their judgement delivered on 25 June 2013. Yannick Noah then appealed against the judgement.

After participating in a political gathering with François Hollande, the current French president, Yannick Noah was criticised by Valérie Rosso-Debord and Pierre Charon of the UMP party, then by Marine Le Pen, for his tax evasion. From 1992 to 1994 he was a Swiss resident and is still involved in litigation with the French authorities in a case pending before the Constitutional Court of France.

The ex-tennis champion has also sued the UMP senator Pierre Charon for defamation for calling him a “tax criminal”. During the first hearing the politician was fined 1 000 euros, but suspended, as well as a symbolic one euro of damages and interest, including judicial publication. The case on appeal will be heard on 16 October.

Dolce and Gabbana convicted of tax evasion

Domenico Dolce, left, and Stefano Gabbana, in the company of some fashion clients

An Italian court on Wednesday sentenced Italian fashion designers Domenico Dolce and Stefano Gabbana to one year and eight months in prison for tax evasion.

The pair’s lawyer, Massimo Dinoia, said they planned to appeal, adding that the case is “groundless.” The designers, known for their sexy styles favored by celebrities such as Madonna, Naomi Campbell and Katy Perry, have denied the charges.

The case dates back to 2004, when two of the company’s main brands were sold to Luxembourg-based holding company Gado.
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A court in Milan has convicted fashion designers Domenico Dolce and Stefano Gabbana of tax evasion. Christina Binkley reports.

Prosecutors alleged that the sale was made to avoid declaring taxes on royalties deriving from the two brands’ activities.

Under Italian law, the pair wouldn’t go to prison because sentences of less than three years are served with house arrest or community service. Moreover, the designers have the right to appeal the verdict twice, and Italian courts often take years to reach a final decision.

Public prosecutor Laura Pedio dubbed the operation as a “sophisticated tax fraud” and originally asked for a two-year jail term for the duo. If the conviction is upheld, the pair would also need to pay a fine to Italy’s tax agency for €500,000.

Over the last five years, Italian tax authorities have ratcheted up pressure on tax evasion in an effort to claw back an estimated €120 billion a year in unpaid taxes, cracking down in particular on the use by Italian companies of offshore centers to avoid taxes.

According to Italian tax authorities, the country lost about €17 billion in undeclared or under-declared income to offshore centers last year, compared with €11 billion for 2011, with Luxembourg the leading country used by Italian individuals and companies seeking to hide money abroad. Corporate tax rates in Luxembourg can be close to zero, while they are about 28% in Italy.

While Dolce & Gabbana has emerged as one of the most high-profile cases pursued by Italian tax authorities, Italian authorities have gone after other fashion groups in the past. In 1996, Giorgio Armani received a nine-month suspended sentence and was fined $64,000 for paying off tax authorities in exchange for favorable audits. Mr. Armani admitted to having paid the bribes.

Late last year, prosecutors launched an investigation into whether the Marzotto family, a wealthy textile dynasty, and four managers dodged 65 million euros in Italian income taxes when it sold fashion house Valentino through a Luxembourg holding company in 2007.

Earlier this year, the family paid the taxes that the state claimed it owed, but will face a criminal trial later this year.

The family and managers have denied all charges. – Wall Street Journal

Microsoft evaded $6,5 billion in US taxes

MicrosoftLogo — The giant US software company evaded $6,6 billion in taxes

Large multinational companies such as Microsoft and Hewlett Packard have used tax loopholes to avoid billions of dollars in income taxes over the last three years, according to a Senate committee report issued Thursday.

The report says multinationals dodge taxes by shifting profits to low-tax jurisdictions overseas and using loopholes to avoid taxes on repatriated income. The Senate Permanent Subcommittee on Investigations released the report ahead of a hearing Thursday at which representatives of Microsoft and Hewlett Packard were to testify.

The report says Microsoft used offshore tax avoidance strategies with subsidiaries in Puerto Rico, Ireland, Singapore and Bermuda to save at least 6.5 billion dollars in federal corporate income taxes.

Hewlett-Packard used a different tactic, according to the report. It created a series of occasional short-term internal loans with the apparent support of its auditor that allowed it to access offshore cash for domestic operations without paying taxes.

Senator Carl Levin, a Michigan Democrat and chairman of the Permanent Subcommittee on Investigations, didn’t accuse the companies of acting illegally.

“Major US corporations are increasingly earning their profits here but shipping them overseas to avoid paying the taxes they owe,” Levin said in a news release.

“At a time when we face such difficult budget choices, and when American families are facing a tax increase and cuts in critical programs from education to health care to food inspections to national defense, these offshore schemes are unacceptable.” – DPA