Can Tax Authorities Scrutinise the Ideas of Foreign Charities? The ECJ's Persche Judgment and Lessons from US Tax Law
The European Court of Justice's (ECJ's) recent Persche judgment poses important questions about the relationship between taxation of gifts and charitable purposes in the light of EC law requirements. This article argues that by applying its established case-law to the matter of donors to foreign recipient bodies, the ECJ takes a position on the social role of both charities and tax deduction. Moreover, the position of the ECJ clearly paves the way for tax authorities to check the objectives and the values pursued by recipient bodies seeking tax-preferred status, a situation that recalls a similar power recognised under specific circumstances of the US Internal Revenue Services. Arguably, the ECJ case-law has more profound consequences on charitable action, since it seems that the power accorded to tax authorities of the Member States to check the purposes of charitable organisations leads to a cosmopolitan apprehension of charitable action while it pushes charities to enhance transparency in their activities.
The New Tax Information Exchange Agreement: A Potent Weapon Against U.S. Tax Fraud?
On October 2, 1996, after sixteen (16) years of negotiation, the U.S. signed a new tax treaty with Switzerland ("1996 Agreement"). The seventh and final category of eligible persons is a specific family foundation under Swiss law. In the fifth hypothetical, the taxpayer essentially undertakes the same transaction as in the previous two examples (examples 3 and 4), but the taxpayer does not keep records of receipts or expenses, and all the relevant information is told to authorities by an informant who specifically states that the individual told the informant that the taxpayer has been underreporting his or her income. More recently, however, money laundering and organized crime have subverted this underlying, noble purpose of Swiss banking secrecy. As a result, the new law appeases international pressure on Switzerland to relax its banking secrecy laws, eliminates conflicts currently existing in Swiss law concerning banking secrecy, and provides an increased deterrent to money laundering. However, with the renewed effort at information sharing between Switzerland and the U.S. stemming from the 2003 Agreement, it will be harder for terrorists or persons wishing to commit tax fraud to conduct their business in Switzerland because the Swiss are now not so willing to protect these people from the wrath of the U.S. ...
Inequality trends in health and future health risk among English children and young people, 1999–2009
Objective To investigate trends in health inequality among children and young people between 1999 and 2009, using outcomes consistent with the current NHS reforms. Design/data Secondary analysis of participants aged 0–24 in the Health Surveys for England (HSE) undertaken in 1999, 2004, 2006 and 2009. Main outcome measures Changes in the absolute and relative risks of four health outcomes by deprivation tertiles, based on occupation of the head of household ▸ self/parent-reported general health, ▸ presence of a long-standing illness (LSI), ▸ obesity ▸ smoking. Results No indicator showed a reduction in relative or absolute inequality between 1999 and 2009. For children (0–12 years), the relative risk comparing the most and least deprived tertiles increased significantly for poor general health (1999:1.6 (95% CI 1.2 to 2.2); 2009:3.9 (2.4 to 6.2), while the absolute difference in LSI prevalence(%) increased from 1.3 (−2.9 to 5.5) to 7.4 (3.6 to 11.4). Among young people (13–24 years), the absolute difference in LSI prevalence increased from −5.9 (−10.9 to −1.1) to 3.1 (−4.1 to 10.7). Absolute inequality in having tried smoking among children aged 8–15(%) increased significantly in the first half of the decade before decreasing in the second half (1999:3.3 (−1.1 to 7.7); 2004:14.1 (9.6 to 18.8); 2009:4.1 (0.1 to 8.8)). However, the increase in absolute inequality for smoking prevalence among young adults (16–24 years) was maintained throughout the decade (1999:−7.0 (−15.6 to 1.3); 2004:11.6 (3.7 to 20.0); 2009:8.2 (−0.3 to 16.9)). Conclusions The national programme between 1999 and 2009 was not successful in reducing inequality in four key indicators of health status and future health risk among children and young people. Some inequality measures for general health, LSI prevalence and smoking increased over this time.