Anyone holding substantial deposits (read over $/€100,000) in G-8 banks: consider this your formal warning.

All data about such deposits will soon be shared among all "developed" countries, and any (every) country which needs to "resolve" its failing banking sector will use the Cyprus bail-in model and use "tax evaded" deposits to provide a liquidity buffer to its crumbling, and NPL-impaired assets. Oh, and what insolvent socialist manifesto can be released to the public without at least one mention of the phrase "fair taxes." Welcome to the second ComIntern, this time with extra global oomph.

From the G-8

LOUGH ERNE DECLARATION

Private enterprise drives growth, reduces poverty, and creates jobs and prosperity for people around the world. Governments have a special responsibility to make proper rules and promote good governance. Fair taxes, increased transparency and open trade are vital drivers of this. We will make a real difference by doing the following:

Tax authorities across the world should automatically share information to fight the scourge of tax evasion. Countries should change rules that let companies shift their profits across borders to avoid taxes, and multinationals should report to tax authorities what tax they pay where. Companies should know who really owns them and tax collectors and law enforcers should be able to obtain this information easily. Developing countries should have the information and capacity to collect the taxes owed them – and other countries have a duty to help them. Extractive companies should report payments to all governments - and governments should publish income from such companies. Minerals should be sourced legitimately, not plundered from conflict zones. Land transactions should be transparent, respecting the property rights of local communities. Governments should roll back protectionism and agree new trade deals that boost jobs and growth worldwide. Governments should cut wasteful bureaucracy at borders and make it easier and quicker to move goods between developing countries. Governments should publish information on laws, budgets, spending, national statistics, elections and government contracts in a way that is easy to read and re-use, so that citizens can hold them to account.

18 June 2013