In Spain, taxmen snoop about homes rented to sun-seeking vacationers — then visit the owners who neglected to report the income

 

In Greece, tax officials fly helicopters over residential areas to spot swimming pools of the alleged poor. In Italy, inspectors raid elite ski resorts to catch the down-and-out in their Ferraris. In Spain, taxmen snoop about homes rented to sun-seeking vacationers — then visit the owners who neglected to report the income. File photo by Virginia Mayo, AP The European Union, whose headquarters are pictured here, has been concerned about the debt crisis in southern Europe. EU officials blame part of the economic mess on a culture of tax evasion.EU officials blame part of the economic mess on a culture of tax evasion. Ads by Google CPD Online, On Time Online CPD - for when your deadline is demanding.  Evading taxes is almost a national pastime in European nations such as Greece, Spain and Italy, and for years their governments largely looked the other way. On Monday, the 27 nations of the EU will meet in Brussels to focus on how to boost growth and jobs. But as the southern European nations struggle with a debt crisis that threatens to overwhelm the European Union, their recently installed governments feel they must become more like their more solvent northern neighbors, where the crime of tax evasion is taken seriously. Greece, Spain, Italy, Portugal and other countries are raising taxes and clamping down on those who have found creative ways not to pay them. Many people admit they cheat, but the wealthy say they are being unfairly singled out to cover for government overspending — and people in the middle class, who have seen their household incomes crumble, are bitter about losing even more to taxes. "In this country, (most of us) are struggling day-to-day in order to make ends meet," said Argiris Eleftheriou, 76, of Athens. "The pensioners and the employed are the only ones that aren't evading taxes. We're paying the taxes of the rich, too." EU officials blame part of the economic mess on a culture of tax evasion in debtor nations that has cost billions in revenue that could be used to shore up their finances. Greece has a projected debt burden of 162% of GDP this year. The amount of taxes past due to the state is $78 billion, according to a 2011 report by the EU's Task Force for Greece. EU officials say that about half of that will never get collected, and the other half is tied up in 165,000 pending court cases. Paying for things in cash is the norm in Greece (and Italy and Spain), making it hard for tax inspectors to track. In Greece, cash transactions accounted for 25% of GDP, according to a 2011 report by Friedrich Schneider, a professor of economics at the University of Linz in Austria. And the EU believes tens of millions of dollars in Greek income has been deposited out of sight in Switzerland banks. Greece is pushing back with a "naming and shaming" campaign. This week, the Greek Economics Ministry published the names of 4,151 individuals who owe a total of more than $19 billion in taxes including a famous singer, a professional basketball player and a former newspaper publisher. "Our sovereignty is being chipped away because some are not paying their taxes," said Finance Minister Evangelos Venizelos, referring to the strict fiscal oversight imposed by the EU and IMF in return for bailout funds. Meanwhile, new taxes keep coming. In the past two years Greeks have seen a self-employment tax of $390 to $650, a solidarity tax of about 1% to 5% of income and a property tax. More are expected, but locals say they can't pay. "Life has drastically changed; we don't go out anymore; we're locked in our homes and close to depression," said Eleni Benekou, 48, a middle-class housewife in Athens. "(Recently) I went to the flea market to buy some things, but I didn't dare open my wallet." In Italy, the focus is on tax evasion by the super-rich, which ran rampant under the leadership of former prime minister Silvio Berlusconi— also accused of tax dodging and who once famously said that evasion of high taxes was a God-given "right." Berlusconi successor, technocrat Mario Monti, has vowed to get Italy's house in order by reducing spending and increasing tax revenue. One of his first actions has been to clamp down on "the pretend poor," as Italian media have dubbed the super-rich tax evaders. While one in four Italians — 15 million — reported no taxable income last year. Italy says that at least 3 million of those own at least three homes. Meanwhile, Italian taxpayers reporting incomes of less than $26,000 owned 188,000 Ferraris and Lamborghinis, more than 500 private airplanes and about 42,000 yachts. Monti has ordered tax police to go to the super-rich wherever they are. In raids on the elite Italian Alps ski resort of Cortina in early January, officials found 42 high-end sports cars belonging to owners who reported less than $26,000 of income annually. The Italian government is also cracking down on money-laundering, lowering the maximum allowed for cash transactions to from $3,200 to $1,275 and putting dogs at the Swiss border to sniff out large sums of cash. (It is common for Italians to drive their money over the Alps to Swiss banks, tax agents say.) So far, Italian officials say this has netted $52,300 on average per day at the border, up from almost zero a year ago. Since Monti took office in November, Italian tax police have identified $65 billion in untaxed money, officials announced Wednesday. Monti is also pushing for a new tax bracket for the super-rich and a financial transaction tax. Even TV commercials appeal to Italians to help find these "parasites of society." And while Italians hang effigies of tax officials at protests, some agree with the push. "Everybody has to do their part, but the rich should do more than their part," said Angela Perin, 56, a school administrator in Rome. "They've had it easy too long, and now everybody is suffering because of that." In Spain, officials also declared "an open season" on tax evasion. They have capped cash transactions at $1,300 and are cracking down on tax havens. Spain has taken hundreds of tax evaders to court, and tax police have caught about 200,000 individuals who had not declared income from rental properties — a large source of income in the sunny tourist destination — and an easy source of under-the-table cash, officials said. One of the first actions of Conservative Prime Minister Mariano Rajoy upon taking office in mid-December was to break a main campaign promise by raising taxes: The government has passed measures to raise income and property taxes by more than $7.64 billion a year and has added a new tax bracket for the rich — which increased the cap by 7% to a maximum of 56% in some Spanish federal states for those earning more than $390,000 annually. Some say the zeal for taxes as the solution to a country mired in debt and high unemployment of 21.5% will backfire. "The tax hike is going to have a perverse effect on the Spanish economy," said Miguel Borra, president of CSI-F, the main civil servant union in Spain. "That will include a growing lack of trust among the population (in government) as well as diminishing purchasing power." In crisis-hit but tax-averse Ireland, officials haven't raised income tax but rates on many other things have risen: taxes on pension contributions, property, carbon dioxide emissions and a hated "universal social charge," along with hikes in sales taxes. "They get called stealth taxes, but they're not particularly stealthy as we can see them coming," said Gerard Casey, professor of philosophy at University College Dublin. "They do it so they can say with a relatively straight face, smirking perhaps, 'We've not raised taxes.' " Emeline Callan, who runs a barbershop in Celbridge, County Kildare, says she earns less than minimum wage despite working nine or 10 hours a day — and the cost of her commute has doubled with the gasoline and car tax increases. Her frustration may be a warning to Europe's governing elites that they must find another way to balance the books. "The tax I pay gets me nothing that I need," she said. "The social charge is just a cover to gain more money from us to pay for the government's mistakes. It's loan repayment on a loan we the people didn't take out."

Half-ton hashish find discovered by Afghan, coalition security forces

 

Afghan and coalition security forces conducting a combined mission near Azim Jan Kariz, Jan. 25, discovered a large drug cache in an area known for strong Taliban influences and operations. Soldiers from the 4th Kandak of the 3rd Brigade, 205th Afghan National Army Corps, and their partners from Combined Task Force Spartan’s 4th Battalion, 25th Field Artillery Regiment, were conducting a dismounted patrol approximately three kilometers south of Combat Outpost Azim Jan Kariz, when they discovered the find. The Soldiers determined the field contained 454 kilograms of hashish, or approximately 1,000 pounds of the illegal drug. Nearly an hour later, Afghan Soldiers had burned all of the hashish, without any injury or damage to Afghan and coalition security forces or local residents. Soldiers conducting patrols throughout Zharay and Maiwand districts routinely find drug caches including poppy and marijuana. The Afghan government prohibits the growth of illegal drugs, and has started an eradication campaign throughout the two districts. Poppy and marijuana crops are often used as a funding source for the Taliban insurgency, and destroying the crops has been a key objective for both Afghan government and security officials.

Britain, US and France send warships through Strait of Hormuz

 

This deployment defied explicit Iranian threats to close the waterway. It coincided with an escalation in the West's confrontation with Iran over the country's nuclear ambitions. European Union foreign ministers are today expected to announce an embargo on Iranian oil exports, amounting to the most significant package of sanctions yet agreed. They are also likely to impose a partial freeze on assets held by the Iranian Central Bank in the EU. Tehran has threatened to block the Strait of Hormuz in retaliation. Tankers carrying 17 million barrels of oil pass through this waterway every day, accounting for 35 per cent of the world's seaborne crude shipments. At its narrowest point, located between Iran and Oman, the Strait is only 21 miles wide. Last month, Admiral Habibollah Sayyari, commander of the Iranian navy, claimed that closing the Strait would be "easy," adding: "As Iranians say, it will be easier than drinking a glass of water." But USS Abraham Lincoln, a nuclear-powered carrier capable of embarking 90 aircraft, passed through this channel and entered the Gulf without incident yesterday. HMS Argyll, a Type 23 frigate from the Royal Navy, was one of the escort vessels making up the carrier battle-group. A guided missile cruiser and two destroyers from the US Navy completed the flotilla, along with one warship from the French navy.

A grisly event in South East Asia highlights the region's developing meth-driven drug war

 

The Mekong River in Thailand Photo via By Jed Bickman 10/11/11 | Share Uppers Rock the World New Life for Asia’s Golden Triangle China Unveils Radical New Approach to Drug Treatment Vietnam's Rehab Gulag Revealed Spinning to Cambodia! In one of the grisliest incidents of the drug war in South East Asia in recent memory, the corpses of thirteen Chinese sailors have been found by Thai authorities on the Mekong River. The victims, including two female cooks, were blindfolded, bound, and shot dead. They're believed to be the crew members of two Chinese cargo ships that were hijacked last week by Thai drug gangs—the boats were recaptured in a firefight with Thai police and 950,000 methamphetamine pills were discovered on board. It's unclear whether the meth was loaded onto the boats by the Thai gangs, or whether it was already being shipped from China. Thai military officials blame a drug trafficking ring led by 40-year-old kingpin Nor Kham—who operates out of northeast Burma and is a wanted man in both Burma and Thailand—for the attacks. Authorities speculate that the Chinese ships neglected to hand over protection money and paid the price. The Chinese government has reacted defensively, suspending cargo and passenger trips along the Mekong river. The region along the border of Burma, Laos, and Thailand—known as the “golden triangle”—is the center of methamphetamine production in Asia, although China has also produced vast amounts of meth since the 1990s. Ephedrine, the base of methamphetamine, is derived from a native Chinese herb—“mao,” AKA "yaba"—which has an important role in Chinese medicine. The UN estimates there are between 3.5 million and 20 million methamphetamine users in South East Asia: such a broad range only serves to illustrate how badly understood the problem is. In 2009, countries in South East Asia collectively reported a 250% jump in methamphetamine arrests, as well as an increasing trend of injecting methamphetamine, which leads to a corresponding jump in HIV and other diseases among users.

Breast implant scandal: taxpayers face £100 million bill

 

Harley Medical Group (HMG), responsible for one in three operations using the French-made implants, said it would go out of business if made to meet the full cost of removal. HMG's position makes it more likely the other two main players, Transform Cosmetic Surgery and The Hospital Group, will also ignore pleas for private clinics to pay for surgery. Should they follow HMG's lead, the bill to taxpayers could feasibly top £100 million as the NHS will be forced to perform the corrective surgery.The big three firms are likely to have performed around two thirds of enlargement operations using faulty implants in Britain. There are around 40,000 women in the UK who have been fitted with the controversial implants and operations to remove them cost around £3,000. Mel Braham, chairman of HMG, claimed the Government had the "moral responsibility" to pay for removal operations, as the regulator meant to ensure the safety of medical devices had failed in its duty.

Iran car explosion kills nuclear scientist in Tehran

 

BBC's Mohsen Asgari: "It seems a motor cyclist pasted a bomb to his car which he was in with two other passengers Continue reading the main story Iran nuclear crisis Undeclared pursuit? Q&A: Nuclear issue Key nuclear sites Sanctions' impact Watch A university lecturer and nuclear scientist has been killed in a car explosion in north Tehran. Mostafa Ahmadi-Roshan, an academic who also worked at the Natanz uranium enrichment facility, and the driver of the car were killed in the attack. The blast happened after a motorcyclist stuck an apparent bomb to the car. Several Iranian nuclear scientists have been assassinated in recent years, with Iran blaming Israel and the US. Both countries deny the accusations. Continue reading the main story Analysis Frank Gardner BBC security correspondent The assassination on Wednesday of another Iranian nuclear scientist may now prompt Iran to try to respond in kind. The murder in Tehran of Mostafa Ahmadi-Roshan comes on top of a sophisticated cyber sabotage programme and two mysterious explosions at Iranian military bases, one of which in November killed the general known as 'the godfather' of Iran's ballistic missile programme. No-one is claiming responsibility for these attacks but Iran blames its longstanding enemy, Israel, and occasionally the US. Whoever is behind them, Iran is clearly being subjected to an undeclared campaign to slow down its nuclear programme. Frank Gardner's analysis in full Iran's Vice-President Mohammad Reza Rahimi told state television that the attack against Mr Ahmadi-Roshan would not stop "progress" in the country's nuclear programme. He called the killing "evidence of [foreign] government-sponsored terrorism". Local sources said Wednesday's blast took place at a faculty of Iran's Allameh Tabatai university. Two others were reportedly also injured in the blast, which took place near Gol Nabi Street, in the north of the capital

Mexico: Reporter Gunned Down In Los Zetas Stronghold

 

Raúl Régulo Garza Quirino, a reporter for the weekly La Última Palabra in Cadereyta, in the northeastern state of Nuevo León, became the first Mexican journalist to be killed in 2012 when he was gunned down after a car chase on 6 January. Garza was also a Cadereyta municipal employee. “We hope the number of Mexican journalists killed in the space of a decade does not reach the grim total of 100 in 2012, an election year,” Reporters Without Borders said. “Mexico could prevent this from happening by taking measures to combat impunity for those responsible for violent crime against journalists. “That was the message that we and the Centre for Journalism and Public Ethics (CEPET) tried to transmit when we gave the families of slain and disappeared journalists a platform in the capital on 10 December. “The current show of good intentions by the Special Prosecutor’s Office for Crimes against Freedom of Expression (FEADLE) and its head, Gustavo Salas Chávez, must be rapidly translated into reinforcement of its personnel and clarification of its jurisdiction. If the senate approves the bill that the lower house adopted on 11 November making attacks on freedom of information a federal crime, the FEADLE must have enough resources to handle all these cases.” Garza was driving his car near his home when he found himself being pursued by gunmen in another car. He was gunned down when he tried to seek refuge in a garage owned by relatives. Sixteen impacts from 16 mm bullets were found at the scene. Investigators have so far not suggested any motive for the murder. Located 37 km from Monterrey, the state capital, Cadereyta is home to one of northern Mexico’s biggest oil refineries and is rife with contraband in stolen petroleum products as well as drug trafficking. It is a stronghold of Los Zetas, a paramilitary group that worked for the Gulf Cartel before becoming an independent criminal organization. A total of 38 employees of the state oil company PEMEX have been reported missing in the region in recent months. It was in this area that radio journalist Marco Aurelio Martínez Tirejina was kidnapped and killed in July 2010 in a still unsolved murder. According to the Reporters Without Borders tally, 80 journalists have been killed in the past decade and 14 others have disappeared. Most of these killings have gone unpunished.