The crackdown on tax evaders who depend on Liechtenstein in order to shield income has escalated.
Nine countries from the Organization for Economic and Co-operation Development (OECD), Britain, France, Italy, Spain, Canada, Sweden, the United States, Australia and New Zealand, have reportedly received and are examining information on Liechtenstein accounts from two banks. The Bundesnachrichtendienst has officially confirmed that Liechtenstein Global Trust (LGT) Group is a focus of the investigation, a charge that LGT has acknowledged. The other bank has not been officially named though the German Sueddeutsche Zeitung has indicated that it is a subsidiary from the Swiss private banking group Vontobel in Liechtenstein; Vontobel has said that this is not true.
The OECD has been prominent amid these investigations. The Organization claims to provide “a setting where governments compare policy experiences, seek answers to common problems, identify good practice and coordinate domestic and international policies.”
It is not surprising to note the OECD’s involvement. In 2002, the OECD published a list of un-cooperative tax havens, which initially included seven countries. Only three remain on the list: Andorra, Monaco and yep, Liechtenstein.
Naming a baby can be controversial. Trust me. I have three children and everyone seems to have an opinion as to whether each name suits the baby, whether it makes sense, whether it’s too ethnic, whether it’s not ethnic enough… And all three names are perfectly “normal” – whatever that means. Not a Django, Brittnee or Kiki in the bunch (not passing judgment, just saying those are less “normal” – whatever that means).
And it’s fine because, despite the fact that my relatives weren’t in love with all of the names, I didn’t need anyone’s permission (other than my husband’s, of course). In the US, you see, you can more or less name your child anything you want. And people do.
But in other countries, it’s not so easy. Enter the case of Michael and Karolina Tomaro who initially had their daughter’s proposed name vetoed by the Swedish National Tax Board.
The dreaded name? Metallica. Yes, like the rock band.
In Sweden, parents must get the names of their children approved by the tax authority before they can receive what is essentially the equivalent of a Social Security number. But the Swedish tax agency said no, citing, among other reasons that it was already the name of a heavy metal rock name (guess that rules out Megadeth and Black Sabbath as choices, as well).
In Sweden, name are evaluated on three points. The name could not be:
a common surname;
a name that can bring negative consequences in its bearer’s future; and
a boy’s name if you’re naming a girl and vice versa
The tax agency felt that the name was both too similar to the name of the band “Metallica” and it sounded like the word “metal.”
The couple fought to have the name approved and received support from the County Administrative Court in Goteborg, Sweden. However, the SNTB appealed. Eventually, the appeal was dropped though Swedish tax officials told Michael and Karolina Tomaro they’ll refuse to acknowledge their daughter if they go ahead with their plans (since little Metallica has already been baptized as Metallica Elody Julia, I’m guessing that someone won’t be getting a Christmas card this year). It also means that Metallica can finally get a passport – previously, the Tomaros could not travel outside of Sweden without her because the name controversy.
But the officials have withdrawn their objections. The news means the Tomaros can now travel abroad because the controversy prevented the seven-month-old baby from getting a passport.
And because I know you’re wondering – well, everyone except for my dad who is still trying to figure out what Metallica is – Lars Ulrich of Metallica is Danish, not Swedish.
What do you think? Fair decision? Should parents be allowed to name their children whatever they want? Can you imagine a scenario in the US where the Social Security Administration or the IRS was in charge of “approving” names? Care to share the worst baby name you’ve ever heard – in the nicest way possible?
Today is Tax Freedom Day in Israel. Tax Freedom Day marks the day of the year that a country, as a whole, has theoretically earned enough income to meet its tax burden.
In the US this year, Tax Freedom Day fell on April 30, two days later than in 2006. India celebrated earliest this year, on March 14. Israel is next to last on the list. Who suffers more than the Israelis? The Swedes. Sweden’s Tax Freedom Day doesn’t hit until August 8.
Of course, this is a little tongue in cheek. Not all countries collect taxes on the same timeline, so the disparity in Tax Freedom Days doesn’t really mean that the tax burden of a country at the end of the calendar is more than those at the front of the line (though it does make for interesting reading). But in Sweden’s case, it’s fairly accurate. The tax burden in Sweden is equivalent to 51% of GDP, which together with Denmark is the highest in the world.
