Bermuda Diamond Link Draws African Ire
An on-line African news service has upbraided one of the world’s leading diamond mining groups for funneling profits from its Tanzanian operation through Bermuda, saying such tax avoidance contributes to the destabilisation of economies in the developing world.
A Pambazuka News report claims the decision by Jersey-based Petra Diamonds’ to route revenues from Tanzania’s Williamson Mine through a Bermuda intermediary would diminish any benefits the East African country stood to gain from a pending multi-million dollar expansion of the diamond mine.
Petra bought Tanzania’s famed Williamson Mine from South African diamond cartel De Beers in 2008. The Williamson Mine, which began production in 1940, has an international reputation for the production of large, high value diamonds and is particularly renowned for its pink diamonds
“An estimated 26 per cent of Bermuda’s GDP is generated from a host of ‘secrecy’ services specifically designed to cater the needs of foreign clients eager to escape the rule of law in both developed and developing countries, despite fully exploiting infrastructure, labour and resources on the cheap,” claimed Khadija Sharife, a southern Africa correspondent for the news service. No reference for the claims were provided.
“Besides the obvious near zero tax holidays, Bermuda provides company redomiciliation (easy corporate inversion), protected cell companies (locking up assets etc), and lack of disclosure concerning company ownership, beneficial or ultimate ownership, company accounts, trusts amongst other legal and financial tools. Of course, Petra is only one of over 480 multinationals to maintain subsidiaries in Bermuda.”
Wow!!!
“An estimated 26 per cent of Bermuda’s GDP is generated from a host of ’secrecy’ services specifically designed to cater the needs of foreign clients eager to escape the rule of law in both developed and developing countries, despite fully exploiting infrastructure, labour and resources on the cheap,” said Khadija Sharife, a southern Africa correspondent for the news service.
If this is true, it is absolutely deplorable!!
It’s another case of unethical but not illegal, Sara. Tax evasion is a crime in every jurisdiction in the world. Tax avoidance, however, is perfectly legal. It’s a simple matter of knowing what legal loopholes to exploit in various tax codes. That’s why clever lawyers earn such big bucks! I sympathise with the writer of this piece — clearly the treasuries and infrastructures of Developing World nations are being exploited by greedy multi-nationals along with these countries’ natural resources. It’s certainly not right. But it’s also not illegal.
So much for Charlie Rangle.
They’re all a bunch of crooks terry. One leaves and the next one enters! And they all have friends. Wasn’t he on the island a few months back being paraded around?