Andorra, one of Europe's last abortion holdouts

Yahoo – AFP, Charlotte DURAND, 28 September 2018

In Andorra, having an abortion is punishable by up to six months in prison

Andorra is best known as a ski destination and tax haven -- but it's the tiny principality's status as one of Europe's last countries with an abortion ban that activists want to highlight on International Safe Abortion Day.

Even in cases of rape or when their lives are in danger, women in the country of 85,500 people nestled in the Pyrenees mountains between France and Spain, have no right to an abortion.

Only Malta, the Vatican and San Marino, another micro-state surrounded by Italy, have the same rules, putting them in a group of outliers which lost a key member this year when Ireland voted to overturn its near-total abortion ban.

In Andorra, having an abortion is punishable by up to six months in prison.

"I had a baby that was at risk of dying in my stomach, but I didn't have the right to have it removed," said Sonia, who learned in the fifth month that her foetus had an incurable disease and would likely not survive the pregnancy.

Sonia -- her name has been changed -- had already announced the pregnancy to her friends and family, but ultimately decided to make the "difficult" decision to abort.

"I would have had to wait for him to die, keep him inside me for several days before realising, and then give birth to a dead baby," said Sonia, who is in her thirties.

Like some 120 other women who head across the border each year to Spain to terminate pregnancies, she travelled to Catalonia -- Catalan is the official language of Andorra -- to have the procedure.

"You come to our country to buy cigarettes -- we come to your country to buy our rights," reads a slogan on a pro-legalisation poster shared on social media.

"It's a form of torture," said Vanessa Mendoza Cortes from the Stop Violencies (Stop Violence) group which is campaigning for the legalisation of terminations.

On Saturday, the group is organising Andorra's first ever street protest in favour of decriminalising abortion.

"We should have the right to have an abortion in our hospitals, and not have to go to Barcelona with guilt and shame," said Mendoza Cortes, who wants to make it an issue in next year's legislative elections.

She decried the local system as "hypocritical", with the authorities turning a blind eye to women heading abroad for the procedure.

It's an option that's only open to women who can pay between 600 and 1000 euros ($700-$1,160), usually handed to the Spanish doctor in an envelope.

Maria, who had an abortion at 18, said she was "lucky" her family were able to scrape the cash together, but she is well aware that for many women "this is far from the case".

Today, aged 27, she recalls her shock at her Andorran gynaecologist forcing her to listen to her foetus' heartbeat, trying to dissuade her from ending the pregnancy.

The journey back from the abortion clinic in Spain took three hours by road, during which she was doubled over with abdominal pain.

She returned deeply distressed, but "there was no psychological or medical support afterwards", she added.

Doctors risk jail

Andorran doctors risk up to three years in prison and a five-year ban from practising if they are caught performing abortions.

Even giving patients information or the address of a clinic abroad is against the law, doctor Eric Sylvestre Dolsa told AFP.

"In cases where the mother's life is in danger, it would clearly pose a huge ethical problem for me as a doctor if you were to apply the law strictly," said the general practitioner.

He is one of few Andorran doctors openly backing legalisation, "no matter the motivation" for ending the pregnancy.

Many doctors are reluctant to debate abortion frankly due to fear of the instability that could arise from the issue blowing up in a principality with a unique political set-up, he said.

Although it is a parliamentary democracy, Andorra has two "co-princes" as head of state: French President Emmanuel Macron, and Joan-Enric Vives, a Catholic bishop staunchly opposed to abortion.

Vives has threatened to abdicate if abortion is legalised, noted Elisa Muxella, head of Andorra's Human Rights Institute.

"The government is hiding behind this excuse and saying that if we had abortion it would put our institutions in peril," said Muxella.

Sonia said she'd like to see Macron take a public stance on the issue.

"Do something for Andorran women," she implored him. "I don't want to see my daughters go through the same thing as me."

EU, Switzerland sign tax info exchange deal

The European Union and Switzerland have inked an agreement on the automatic exchange of bank account data. It had been billed as a milestone in the authorities' fight against large-scale tax evasion.

Deutsche Welle, 27 May 2015

The EU and Switzerland on Wednesday signed a major accord aimed at efficiently curbing banking secrecy for EU residents and preventing them from hiding undeclaredincome in Swiss banks.

The deal was inked in Brussels by Pierre Moscovici, the European Commissioner responsible for taxation matters, and Jacques de Watteville, the Swiss secretary of state for international financial affairs.

"The agreement deals another blow against tax evaders and represents another leap towards fairer taxation in Europe," Moscovici said in a statement.

Aiming for more transparency

The accord will take effect in 2018. Under it, the EU and Switzerland will automatically exchange information on the bank accounts held by their respective residents.

Data to be shared on an annual basis include the names of account holders, their addresses, tax registration numbers and birthdays as well as the amount of money they hold in their accounts.

"This new transparency should not only improve member states' ability to track down and tackle tax evaders, but also act as a deterrent against hiding income and assets abroad," the European Commission argued.

Brussels is currently negotiating similar deals with Andorra, Liechtenstein, Monaco and San Marino and is expecting to sign relevant accords by the end of the year.

hg/sri (AFP, Reuters)

Andorra to introduce income tax for first time

BBC News, 2 June 2013

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Mr Marti met with the French president at
the Elysee in Paris

Andorra is to introduce a tax on personal income for the first time as it faces pressure from the its European neighbours to tackle tax evasion.

Antoni Marti, the head of the Andorran government, told French President Francois Hollande that he will introduce a bill before 30 June.

The principality will "gradually meet international tax standards", according to the office of the French president.

There is currently no income tax applied to individuals or corporations.

EU finance ministers have agreed to start talks with Andorra - along with Switzerland, Liechtenstein, Monaco, and San Marino - on swapping bank account information.

Recently, the European Commission told the European Parliament it wants EU-wide exchange of all types of income data as part of the fight against tax evasion.

EU tax authorities already automatically exchanged information for income such as employment, pensions and insurance but not for income such as dividends and capital gains.

Tax evasion costs EU states 1tn euros ($1.3tn; £850bn) a year, more than was spent on healthcare in 2008, the Commission has said, and some MEPs are calling for a Europe-wide blacklist of tax havens.

Mr Hollande was meeting with Mr Marti in Paris in his role as one of the two co-monarchs of Andorra, which is situated in the Pyrenees mountains between France and Spain.

More recently, France's Socialist government was hit by a scandal, as former minister Jerome Cahuzac was forced to resign over tax fraud allegations. He later admitted that he had hidden about 600,000 euros in a Swiss bank account.

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The 'who's who' of European tax havens

Deutsche Welle, 17 April 2013

Forget about the Bahamas, Panama, Cayman Islands, or Fiji. If you want to avoid paying taxes and have no problem with dicey business practices, Europe has a lot to offer.

Europe is far from innocent in the international offshore tax evasion industry, as the Tax Justice Network (TJN) recently demonstrated. Many European countries, with their stable infrastructure and professional personnel, provide fertile ground for businesses or individuals to evade taxes.

 Markus Meinzer sees more than a
 few loopholes that need to be closed

There are more than a few gaps that need to be filled in Europe, according to Markus Meinzer of the TJN. He helped paint a picture of who's who among European tax havens.

Andorra

The independent mini-state of Andorra in the Pyrenees, which is not a part of the European Union, offers a secretive place for those in neighboring countries to stash their money. Particularly attractive is the personal service offered by banking advisers there. It's also easy for Spaniards and French to simply drive there to deposit cash. Afterwards, one can always tank up and buy cigarettes there - tax-free, of course.

Austria

As a country sharing borders with Germany, Hungary, Slovakia, Slovenia, Italy, the Czech Republic and Switzerland, Austria draws foreign capital by promising secrecy to account holders. It caters especially to Europe's German-speaking population, Meinzer said. But he also said that he knows of Argentines who, for example, combine investing in Austrian bonds with the advantages of bank secrecy. Due precisely to the lack of financial transparency and its geographic location, Austria has also attracted wealth from Arab world dictators for decades.

Channel Islands

 Guernsey is a safe haven for
dubious capital dealings

The British Channel Islands Jersey, Guernsey and Sark are home to hundreds of financial institutions and insurance companies drawn to their simple and low taxes. While Jersey probably "hides the most dirty business," according to Meinzer, Guernsey is the most innovative.

With its so-called self-protected companies, an apparent single company is organized into cells with protective legal walls between them. And on Sark, according to British newspaper The Guardian, there are 24 companies registered for each of the approximately 600 inhabitants.

Cyprus

Cyprus is the perfect example of what can go wrong with depending on such dubious business models. It was particularly oriented toward former Soviet countries, and acted as a hub for them. Transactions over letterbox companies brought money into Cyprus, then back to countries like Russia - thus avoiding Russian tax authorities. But since the Cyprus bailout , in part by the EU, the Mediterranean island will have to come up with a new business model.

England

England, with London, represents one of the largest hubs for tax evasion and capital flight. Meinzer described London as "the mother of all tax havens" since the zone, which does not answer to the crown, has developed a network that continues to bring money back to the capital of the former empire. Money flows from there to British Channel Islands, such as Guernsey, Jersey or to the Isle of Man, then overseas to British territories in the Caribbean, such as the Cayman or Virgin Islands - or in Europe, to Gibraltar. London, is the seat of many dubious "letterbox companies," which only exist on the Internet.

Germany

Frankfurt is a great place for foreign
investors to earn tax-free interest

Germany protects the data of foreign investors, who also don't have to pay taxes on interest.

Only Germans, or foreigners resident in Germany, have to actually shell out a flat rate withholding tax on interest income, Meinzer said.

Information on such yields also rarely flows out of Germany, he added: "Foreign investors with German accounts are protected with a certain degree of anonymity."

That's why Germany ranks ninth in the world for financial secrecy, according to TJN.

Gibraltar

At the southern tip of the Iberian Peninsula, Gibraltar has specialized in allowing such letterbox companies, called "trusts." The structure of such trusts means there is no real owner of the company. They are often used to add a layer of secrecy to letterbox companies, Meinzer said, which is particularly good for money laundering.

Meinzer cited insider information in calling it "the dirty end of the spectrum" for bringing money back into financial markets. The presence of many gambling casinos there also comes into play.

Ireland

It's called the "double Irish" in the financial world: A company founds two subsidiaries in Ireland with its business tax rate of 12.5 percent. Then, one claims to be based in a different tax haven. (Comparable taxes in the United States, for example, are around 35 percent.)

 Ireland's idyllic landscape belies
its savvy financial sector

While the one company does business in Europe, it pays the other patent fees. Profits vanish, as costs and income equal out on the balance sheet.

This is completely legal in Ireland, and therefore an optimal location for companies such as Google, Apple or Amazon.

Although other countries like the Netherlands offer similar models, Meinzer said the difference is that people do actually work in Ireland, which at least creates some jobs and a bit of growth in the country.

Isle of Man

Taxes are kind of an afterthought on this island between England, Scotland and Ireland. Inheritances and capital gains aren't taxed at all, while the highest level of taxation lies at 20 percent. Corporate tax is nonexistent. It's especially loved as a hidey-hole for British millionaires.

Luxemburg

Luxembourg is the second-largest financial hub in Europe, after London. Innumerable investors and around 150 different banks enjoy a lenient tax framework in Europe's stocks and bonds center. Luxembourg's status as an EU member makes it particularly attractive for European companies and the international market, Meinzer explained. "If I want to get around German laws, for example, I could go through Luxembourg," Meinzer said, adding that 40 German banks do business there.

Malta

Malta's capital Valetta offers
a beautiful climate - for investors

With its low tax rates, Malta, like Cyprus, has long drawn foreign capital. Although corporate taxes are around 35 percent, companies can get most of that refunded.

It's a favorite among German companies, which earn a higher profit if based on Malta. Meinzer said that while it's clearly a tax paradise for companies, it's not clear if that's also the case for individuals.

Monaco

The Principality of Monaco continues to be home to the rich and famous, being surrounded by France. Millionaires happily set themselves up there due to the fact that they pay no income or inheritance taxes. The city-state also does not prosecute financial crimes committed abroad. Businesses, however, must pay taxes there - at rates of around 33 percent. France, though it doesn't play an active role, lends a protective hand, Meinzer said.

Netherlands

The Netherlands is more than
just cheese

What Luxembourg is for private investors, the Netherlands is for large corporations. Business taxes are incredibly low, with many tax advantages for interest and licensing income.

With the "Dutch sandwich," a parent company has a subsidiary in the Netherlands, which it uses as a cheap tax base to develop its European business.

Switzerland

Although there are supposedly no more completely anonymous bank accounts in Switzerland (and neighboring Liechtenstein), it continues to draw large sums of money due to its strict banking secrecy. Considering the volume of money in Switzerland, it made first place on the TJN's Financial Secrecy Index.

Offshore Secrets

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