HSBC helped La Fayette scandal suspect's son avoid taxes

Want China Times, Staff Reporter 2015-02-11

A branch of HSBC in London, where Andrew Wang is
understood to have died last month. (File photo/Xinhua)

The Swiss branch of HSBC helped Wang Chia-hsing, the eldest son of the late Taiwanese agent Andrew Wang involved in the La Fayette scandal, to alter the dates of documents to hide tens of millions from tax authorities, reports our Chinese-language sister paper China Times.

Andrew Wang, who is udnerstood to have died in London last month, was the Taiwanese agent of French arms supplier Thomson-CSF. He has been on Taiwan's most wanted list for corruption and bribery related to a 1991 deal in which Taiwan's navy bought six La Fayette-class frigates from Thomson-CSF, later renamed Thales SA, for an inflated price tag of US$2.8 billion. The price included procurement kickbacks and bribes to facilitate the purchase of the ships, which entered service with the ROC Navy as Kangding-class frigates.

The International Consortium of Investigative Journalists found an account of the bank with over US$38 million relating to Wang Chia-hsing (the relation remains unclear) was blocked by a court order. The bank's documents obtained by the consortium documenting conversations between Wang and a clerk of the bank showed the clerk was willing to change the date on Wang's form to an earlier date. Wang sought to avoid paying income tax on earnings overseas by having the bank recognize his status as foreign national resident in Britain, a legal way to reduce tax.

Andrew Wang died of illness in London on Jan. 20, according to Taiwan's representative office in the UK which has confirmed the death with British authorities but did not specify the cause, Taiwan's Central News Agency reported.

The report based on the information obtained by Herve Falciani, a former employee of HSBC Geneva and a computer expert. In 2007, he stole over the data of the bank's 100,000 accounts belonging to members of royal families, celebrities, sports stars, arms dealers, traders in blood diamonds and dictators and handed it to the French government the following year.

HSBC's statement said it has cut nearly 70% of the accounts at its Swiss branches and reformed its private banking business to avoid being used by launderers and tax dodgers since 2007.

A wanted notice for Andrew Wang. (Photo courtesy of Criminal

Investigation Bureau)

The Chengde, a ROC Navy Kangding-class (La Fayette) frigate.

(File photo/China Times)

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