“The people will believe what the media tells them they believe.”
After the Supreme Court’s ruling that it’s up to the Parliament and not the government to trigger Article 50, Mr Farage revealed the pivotal aspect of his Brexit campaign:
“Well, we would be half-Brexiting is my guess – is that legally we may get out of some aspects of EU membership, but if we stay in the single market, we finish up with all our businesses being regulated somewhere else and indeed a court in Luxembourg that can overrule our own Supreme Court and if that happens it will a supreme act of betrayal.”
In her Brexit speech, Prime Minister May confirmed that she is going to fulfil Mr Farage’s ambition of freeing Great Britain of the European Court of Justice in Luxembourg:
“The second hard fact is that even after we have left the jurisdiction of the ECJ, EU law and the decisions of the ECJ will continue to affect us… But, in the future, the EU treaties and hence EU law will no longer apply in the UK.”
However, not all Leavers will look forward to ending ECJ’s jurisdiction in the UK.
Starting from the year 2019, the ECJ will ensure that all EU member states implement its new Anti Tax Avoidance Directive and bring an end to the tax-avoiding practices by the EU citizens or businesses.
Of course, Brexiteers continue to argue that the President of the European Commission, Jean-Claude Juncker, attempted to block EU’s clampdown on tax avoidance.
Nonetheless, once Juncker had become the President of the European Commission in 2013, his institution has been actively engaged in drafting new legal framework to tackle the increasing and aggressive tax avoidance.
In comparison to the British tax havens which happen to be exclusively used by the British wealthy tax-avoiding individuals, Luxembourg serves as a tax haven primarily for non-EU citizens and businesses.
The new EU Directive targets only individuals or businesses that generate profits within their member states; thus it will not have much impact on Luxembourg’s tax havens.
Indeed, until the Greek financial crisis, the European Union didn’t take any concrete actions to clampdown tax evasion or tax avoidance.
After the EU decided to bail out Greece, massive tax evasion practices by the Greek millionaires were discovered.
“In a 2009 report, Helvea Bank calculated that 99% of the estimated CHF 24.2 billion held in Switzerland by Greek citizens was undeclared to their tax authorities.”
This alarmed and prompted Brussels to prevent future Eurozone financial crisis that would destabilize its currency, by bringing an end to future tax evasion or tax avoidance within its member states.
As a matter of fact, the milestones of EU’s endeavour to end tax avoidance coincide with critical Brexit decisions undertaken by the British government.
The year 2013
- December 6th of the year 2012, the European Commission produces their action plan to clamp down on tax avoidance;
- January 23rd of the year 2013, Cameron announces that he changed his mind and that he favours an EU referendum.
The year 2016
- January 28th of the year 2016, the European Commission produces the first draft of the EU Anti Tax Avoidance Directive;
- February 20th of the year 2016, the day that David Cameron announces the date for EU referendum.
The year 2019
- January 1st of the year 2019, the scheduled date for all EU member states to apply the measures set out in the EU Anti Tax Avoidance Directive;
- March 29th of the year 2019, the scheduled date for Great Britain to leave the EU.
David Cameron campaigned to remain, but how comes he failed to mention the biggest advantage of remaining in the EU, the EU Anti Tax Avoidance Directive that would terminate tax-dodging practices by our wealthy elite?
In fact, most individuals behind the Leave campaign have been implicated in tax-dodging practices.
Even Mr Farage avoided paying taxes by setting up an offshore fund in the Isle of Man:
“Nigel Farage opened an offshore trust fund in a plan to slash his tax bill, a Mirror investigation has revealed.”
Other prominent Brexiteers who avoided paying their due taxes to UK tax authorities include:
- Arron Banks, who is associated with and profits from companies set up in the British Virgin Islands and Gibraltar tax havens.
- Sir James Dyson, who partially avoided his full share of tax by setting up companies in Malta, the Isle of Man and Luxembourg tax havens.
- Lord Ashcroft, who avoided paying his taxes by registering as a resident Belize and setting up a trust fund in Bermuda.
Prominent pro-Brexit newspapers are owned by individuals who avoid paying tax to UK tax authorities, such as:
- The owner of the Sun newspaper, Rupert Murdoch avoided paying his taxes by setting up his companies in the British Virgin Islands, and the Cayman Islands tax havens.
- The owners of the Telegraph newspaper, David and Frederick Barclay avoided paying their taxes by registering as residents of Sark island, located in the Channel Island tax haven.
- The owner of the Daily Mail newspaper, Lord Rothermere avoided paying his taxes by inheriting the Daily Mail through an offshore trust set up in the Channel Island tax haven and is registered as “non-dom”.
- The owner of the Express newspaper, Richard Desmond avoided paying his taxes by setting up a company in Luxembourg’s tax.
Therefore, rather than the British people, the only ones that will benefit from leaving the EU are the wealthy British tax-dodgers!