Britain, Business, Economic, Finance, Government, Legal, Politics, Society, Taxation

Amazon’s tax advantage is economically unfair. Time to put a halt to it…

 

TAX LOOPHOLES

The age of the internet has brought colossal benefits to many large, multinational companies. No more so than for Amazon, a distribution giant. The company has earned very lucrative revenue streams, but has managed to deftly reduce its corporation tax bill through skilful use of tax loopholes. Last year, Amazon paid just £4.2 million in UK corporation tax, despite generating UK sales of £4.3 billion. The firm has been heavily criticised because it has now emerged that it avoided paying billions of pounds in tax last year by funnelling revenue of £11 billion through an overseas company based in Luxembourg. Amazon is also reported to have received a financial inducement and rebate amounting to £4m from the authorities in Luxembourg as part of the controversial arrangements.

This is all the more startling considering Amazon has received more than £10m in financial assistance from the Scottish Government, with the company opening a logistical distribution hub in Dunfermline, alongside its customer call centre in Edinburgh.

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Striking the right balance between competitive rates of Corporation Tax to attract foreign direct investment such as this while ensuring companies pay their rightful share is a difficult and complex area for politicians of all parties. Whilst Amazon’s avoidance causes public anger, governments have to take into account the investment the company has made in a country and the employment which that investment has created. Amazon may well argue that it would not have invested if it had been discouraged from exploiting this position.

A low rate of Corporation Tax which the UK offers in comparison to other countries is generally attractive for foreign firms wishing to make direct investment. But such schemes should also encourage companies like Amazon to pay and reduce the incentive for elaborate avoidance schemes of this sort. The loopholes provide too much of an economic and financial advantage for many large multinational firms. These require to be reined in through tighter political scrutiny and more exacting and better enacting of legislation.

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Arts, Books, Legal, Society

Book Review: ‘The Collini Case’

Intro: Fabrizio Collini is a hard working, quiet and respectable man. Until the day he visits one of Berlin’s most luxurious hotels and kills an innocent man in cold blood. A murder. A murderer. No motive

ONE

IT was routine during the Second World War that both Germans and the Allies shot civilians in reprisal for attacks on their armed forces. One would be alarmed to think that a ratio could even be set at which such killings could be deemed legitimate. Yet, in 1941, Hitler set the bar at 100 civilians per soldier. Indifference aside, one would be tempted to ask how high is too high?

It is this question which fundamentally plagued the defence of an Italian man, Fabeizio Collini, some sixty years later. The Collini Case, by Ferdinand von Schirach, is based upon that historical trial.

Since the Nazi regime ended in cataclysmic defeat, like many of his generation, and some contemporaries even with a comparable heredity, von Schirach (born in 1964) is, not surprisingly, still dealing with the fall-out. That seems implicitly written into this philosophical legal thriller.

Collini, a very large man, purports to be a journalist. He walks into a luxury hotel suite in Berlin and murders Hans Meyer, the old man he has arranged to interview. Located near the Brandenburg Gate, he repeatedly shoots him from behind, and stamps his skull until it no longer resembles a skull. Collini sits in the hotel lobby and waits to be arrested by the police. Von Schirach describes the killing and post mortem with an entirely appropriate, but eerie economy and use of words.

Collini admits he did it, but the motive for doing so is unapparent. He refuses to say why he committed murder, and indeed says next to nothing.

A young and recently graduated defence lawyer, named Caspar Leinen, is assigned the case. It is his first, but it seems hopeless. His client refuses to say anything, except that he is not interested in being defended. Leinen discovers that the murdered man was a rich industrialist, who was also the grandfather of Leinen’s closest school friend, Philipp, who is now dead, killed in a car crash. Leinen used to spend holidays on the Meyer’s country estate, and fell in love with Philipp’s sister, Johanna. She insists he can’t defend this monster who had murdered her grandfather, the benign old man with whom Casper used to play chess. Leinen considers withdrawing from the case given the conflict of interest that arises, but is deterred from doing so after a conversation with a famous and highly respected defence lawyer, Mattinger, who made his name by successfully defending members of the Baader-Meinhof terrorists, and was a strong believer and advocate of the constitutional state (founded on law). Leinen is convinced and commits himself to Collini’s defence. As it happened, Mattinger becomes recruited by the Meyers Corporation as an accessory prosecutor, and becomes Leinen’s main opponent in the trial.

TWO

WERE it not for the fact that the trial had to be unexpectedly interrupted due to the illness of one of the judges, the case would have been briskly concluded and Leinen would have lost. Instead, he has an extra ten days to pursue a line of inquiry that, if successful, might well mean Collini being discharged.

All at once, the novel becomes a meditation on the law, a discussion of the difference between judicial guilt and moral culpability. Von Schirach’s characteristically spare prose could have been written with an icicle. He uses fewer adjectives than the opening by-line to this novel by Hemingway, resolutely refusing to impose emotions on the reader. Although the spectre of the Nazi past broods over this book, it is not about then, but now. In an article in Der Spiegel, written a few years ago when the book was first published in German, von Schirach maintained that he was more interested in the present than of the generations before him. In the author’s own words The Collini Case is a ‘book about the crimes committed in our state, about vengeance, guilt and the things we continue to fail at even today.’

Nevertheless, we cannot detach that the things we do today have a history. The law in any country is a complex historical document and the past it embeds continually reaches out its cold fingers to touch the present. A note at the end of the book informs the reader that this novel was a point of reference for a public inquiry into the mark left on the German Ministry of Justice by the Nazi past.

The impact of the novel’s 180 or so pages, in which not a word is wasted, is far greater than any legal thriller treble its size. The importance of the ideas contained within the narrative, combined with the meticulous unemotional prose, provides the reader with a book that is both fascinating and moving.

THREE

THE CASE draws upon the Statute of Limitations, but the existence of that law raises a philosophical point which von Schirach doesn’t really address: to what extent do we remain responsible for acts committed long ago? Is a man in his seventies like Hans Meyer the same person in his twenties? Statutes of limitations, which are found in most European legal codes (but not in ours) recognise that liability for even terrible crimes may expire.

The novel is written in a dry, flat style, but it is extremely persuasive. The trial scenes are excellent and well-thought through, and von Schirach confronts the question of the limitations of the law by inviting us to ask what justice is. Mattinger tells Leiten that ‘judges can’t decide according to what seems politically correct. If Meyer acted correctly by the standards of the time, we can’t blame him for it today.’ Leiten disagrees, believing that we can judge the past because ‘we’ve made progress.’ Mattinger says this opinion is an expression of the ‘zeitgeist’: ‘I believe in the laws and you believe in society. We’ll see who turns out to be right.’

It would take a dull reader of this tense and taut book not to ponder over the questions being asked: are we entitled to judge the past? If so, how far back should that extend? The Collini Case is disturbing precisely because there is no conclusive answer to be given. Even with Collini, who has acted with certainty, ends by saying ‘sorry for everything’. Yet, he accompanies this apology to Casper Leinen with a photograph which asserts that his act of revenge was indeed just. The reader may agree, while remaining aware of the implications of going beyond the law to rectify the failures, or apparent failure, of the Law and the legal system.

The German legal system of the mid twentieth-century was often described as being knotty, tangled and convoluted, perhaps because many of its secrets stemmed directly from the War. Or, maybe, because the contemporary German legal system is so dramatically unlike that which exists in Britain, one could easily find oneself forgetting that Collini’s trial is set in the twenty-first century.

As a character, Leinen would seem more at home in the 1930s. The reader could qualify this through his daily routine which, to all intent and purposes, is fairly grey and timeless. His legal colleagues may speak in court of the zeitgeist, but that zeitgeist is rarely on show in this novel. For Leinen, for the prosecutor Mattinger – and conceivably too for von Schirach, himself a prominent German defence attorney – the reader may deduce or feel inclined to think that the long hours spent in chambers has precluded their full immersion in society. It is this lack and deficiency which contributes to the oppressive, grey mood that weighs down on the pages of this book.

The narrative isn’t a comfortable story, but it is an important one. It is well documented that von Schirach’s late grandfather, Baldur, was the Reich Youth Leader of the Nazi Party, sentenced to 20 years imprisonment at the Nuremberg trials. The Collini Case clearly resonates on a personal, but also on a more universal human level. Like the central hall of the law court itself, with the allegorical figures and lofty walls and high ceilings which overawe Leiden, which make him feel small relative to the law, the reader is likely to find him or herself surprisingly sucked into the perturbations of justice unfurled in this case.

Like the best murder and crime fiction novels, The Collini Case has a twist to it. The reader is left to think given the legal arguments that are presented from either side. Ferdinand von Schirach has a family history that lends a particular poignancy to this brief and compelling novel.

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Britain, Government, Human Rights, Legal, Military, Society

Iraq war crimes denied by the British Government….

INTERNATIONAL CRIMINAL COURT

Earlier this month, the human rights lawyers PIL (Public Interest Lawyers) lodged an application with the International Criminal Court (ICC) in The Hague, said to represent more than 400 Iraqis who have called for an investigation into alleged war crimes carried out by the British Army. The application lodged with the ICC has been made under Article 15 of the Rome Statute.

The legal dossier poses serious implications well above those allegations embedded within the document. For example, it seeks to know whether leading figures in the army and UK government should be called to account.

The submission to the ICC refers to ‘thousands of allegations of mistreatment amounting to war crimes of torture or cruel, inhuman or degrading treatment’. The dossier also alleges that some ‘at the highest levels’ were mostly responsible, including head of the army General Sir Peter Wall and ex-defence secretary Geoff Hoon.

Following the lodging of the document with the court Foreign Secretary William Hague was quick in responding with a firm statement that the allegations are either already under investigation or have been dealt with in previous government inquiries and rulings. Mr Hague insists that any bid to prosecute British politicians and senior military figures for alleged war crimes in Iraq should be rejected. The speed with which Mr Hague reacted and contested the claims is perhaps reflective over concerns the UK government has over the potential damage to Britain’s reputation.

Some 11 years on, the political sensitivity of the UK’s involvement makes the prospect of an international criminal court inquiry highly explosive. The government’s defence is that intensive inquiries have already been held at UK level. It says that some cases of abuse have been acknowledged with appropriate levels of compensation paid and apologies offered. An interim report on an extensive inquiry by Sir Peter Gibson was published last month. Rejecting the allegations of systematic abuses the Foreign Secretary said that the British armed forces ‘uphold high standards and they are the finest armed forces in the world’.

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Yet, there are two problems here for the government. The first is the increasing importance accorded to human rights in international relations. While such investigations into military operations in theatres of war have been questioned on the premise that they would underestimate the intense dangers and pressures which troops were operating under, concerns over human rights abuses has grown. The UK is a signatory to international human rights conventions.

The second problem is that there is a long history of domestic inquiries into the conduct of military operations that were subsequently found to have been inadequately deficient or incomplete. Any external investigation by an international court would spark concern within the Ministry of Defence, which has presided over numerous errors and shortcomings.

What is more, a failure to enforce compliance with the rules of war would be a grave allegation for the MoD to face. But unless such compliance is enforced from the top down with the level of robustness needed, such charges are only likely to be repeated.

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