Corporate Tax Avoidance
Joint statement from Berne Declaration/VOLCAFE – Beginning May 2005 (19.09.05)
In April 2004, the Berne Declaration strongly criticised VOLCAFE for its use of an off-shore structure. Since VOLCAFE conducted some commodity futures business through the Jersey-based subsidiary, Cofina, any profits arising from those transactions were not subject to taxation.
Berne Declaration is not able to substantiate its claim, that by the use of the off-shore structure, primarily coffee-producing countries have been disadvantaged. It will, therefore, no longer assert this claim.
VOLCAFE/ED&F Man confirms that Cofina Jersey was dismantled in August 2004 and thus no longer conducts any business through so-called tax havens. Berne Declaration welcomes this. VOLCAFE/EDF& Man now conducts all the commodity future transactions, which are necessary for its international coffee trade, through Volcafe International Ltd, based in Winterthur. Any such profits arising from that business will consequently be taxable in Switzerland.
It remains a concern for Berne Declaration, that earnings from international commodities trade be distributed fairly. The offshore structure of VOLCAFE was only one example of the use such tax havens. Berne Declaration estimates that approximately half of world trade is conducted through tax havens and that, each year, approximately 150,000 new off-shore companies are formed. Berne Declaration considers the use of such offshore structures, even though legal, to be inappropriate and unjust. It demands a change in international standards on this issue. Concurrently businesses concerned with world trade, for example those in the coffee sector, could agree on the first steps towards voluntary guidelines. In this respect, Berne Declaration has elaborated tangible proposals.
Berne Declaration is not able to substantiate its claim, that by the use of the off-shore structure, primarily coffee-producing countries have been disadvantaged. It will, therefore, no longer assert this claim.
VOLCAFE/ED&F Man confirms that Cofina Jersey was dismantled in August 2004 and thus no longer conducts any business through so-called tax havens. Berne Declaration welcomes this. VOLCAFE/EDF& Man now conducts all the commodity future transactions, which are necessary for its international coffee trade, through Volcafe International Ltd, based in Winterthur. Any such profits arising from that business will consequently be taxable in Switzerland.
It remains a concern for Berne Declaration, that earnings from international commodities trade be distributed fairly. The offshore structure of VOLCAFE was only one example of the use such tax havens. Berne Declaration estimates that approximately half of world trade is conducted through tax havens and that, each year, approximately 150,000 new off-shore companies are formed. Berne Declaration considers the use of such offshore structures, even though legal, to be inappropriate and unjust. It demands a change in international standards on this issue. Concurrently businesses concerned with world trade, for example those in the coffee sector, could agree on the first steps towards voluntary guidelines. In this respect, Berne Declaration has elaborated tangible proposals.
