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whistleblower protection

How Buddhist tax accountants and whistle blowers can change the world

Duncan Green's picture

Max Lawson is back again (he seems to have more time to write now he’s Oxfam International’s policy guy on inequality) to discuss tax morality and a bizarre encounter with a Buddhist accountant.

A few years ago I went on a hiking holiday with a number of people I didn’t know, and ended up befriending a tax accountant. He was a very nice man, who had been going through a bit of a mid-life crisis, his children had grown up and left home, his wife was not very interested in him, and he had developed an interest in Buddhist philosophy. Anyhow, after a few days, he revealed to me that over the last five years he had started defrauding a firm he had been working for, to the tune of several million pounds a year. He was not taking the money for himself, but was abusing their trust in him, by not telling them about the latest tax avoidance schemes, meaning that they were systematically overpaying tax to the government.

I was reminded of this surprising suburban Robin Hood figure by the rash of stunning leaks on tax prompted by the whistle-blowers of the last couple of years, starting with the Luxleaks, then Swissleaks, and then the mother of all leaks, the Panama Papers. All have involved incredibly brave accountants or bankers risking a huge amount to get this information into the public domain. The two former employees of PricewaterhouseCoopers who leaked information on tax breaks for major corporates such as Apple, Ikea and Pepsi in the Luxleaks case are facing years in prison. The Swiss Leaks whistleblower has been sentenced to six years in prison in Switzerland in absentia. Finally, the Panama Papers whistle blower has wisely remained anonymous but I imagine is being hunted by a range of private security firms.

I can only guess at the panic in the boardrooms of the investment banks and particularly at the big four accounting firms – Deloittes, PwC, KPMG and Ernst & Young, who between them have almost complete oversight over the business of aggressive tax planning by the major corporations. But no amount of security software can fully protect any firm from increasing numbers of employees no longer feeling morally comfortable with what they are doing, as ultimately the secrecy of the system is dependent on those that run it being able to look in the bathroom mirror in the morning and feel OK about their lives.

Protecting Whistleblowers: What Does It Mean and What Can Be Done?

Jing Guo's picture

Shehla Masood was a 38-year-old businesswoman living in the central Indian city of Bhopal. She was shot and killed near her home on Aug. 16, 2011, after availing herself of India’s Right to Information Act in order to expose local corruption.
 
Masood was one of several whistleblowers killed or attacked in India before the passing of the country’s whistleblower protection bill. Her story demonstrates the considerable threat of retaliation for whistleblowing.
 
When faced with corruption, only few of us take the courage to speak up. Reporting questionable business practices or abuses of power without protection is simply too risky for many. However, whistleblowing plays a critical role in fighting corruption.

So, how do we encourage those who witness corruptive practices to come forward? And, how do we provide adequate protection for whistleblowers? On International Anti-Corruption Day (December 9), members of the International Corruption Hunters Alliance gathered at the World Bank to discuss these questions.

If Only Corruption Could Be Defeated with Pocket-Less Trousers

Fumiko Nagano's picture

We at CommGAP are interested in learning how to change social norms as key to fighting petty corruption. When looking at the issue of norms as they relate to corrupt practices, as with most issues, there are two sides to the petty corruption equation: citizens who pay bribes and public servants who accept them. A number of posts on this blog have dealt with the importance of getting citizens to view bribery as wrong. So what about public servants? How do you get them to stop demanding and accepting bribes from citizens?

A couple of interesting solutions to this question were found in Nepal and Kazakhstan, as reported by the BBC earlier this year. In Nepal, in order to fight petty corruption at its main international airport, the government planned to put in place an unusual measure: making airport employees wear pants without pockets to prevent them from taking bribes from travelers. In Kazakhstan, one of the government’s anti-corruption initiatives included making civil servants wear badges saying “I am against corruption,” in the hopes that those wearing such badges would think twice before demanding bribes.