Final Word from Tuesday, March 17, 2009
After France and Germany called for a fresh crackdown on tax havens and offshore centers this month, Finance Minister Miroslav Kalousek told Právo that this will be his priority at the G20 summit. At a time when taxpayers are being asked to make sacrifices, he said, crooks can't be allowed to salt away their profits in areas where they are difficult to prosecute. Little action should be expected from Kalousek, though. He had the chance last year to crack down on Czech account-holders at LGT Bank of Liechtenstein but hasn't. His ministry also oversaw the sale of ČSA Cargo in 2007, but Czech taxpayers still have no idea who the real buyer was. And when Kalousek's ministry refused to take responsibility for the failure of Porcela Plus, it said its hands were tied because it was merely the beneficial owner. Kalousek's own familiarity with offshore or secret companies seems a bit too intimate at times.[Czech Republic Central European Handling]
Glossary of difficult words
offshore - made, situated or conducting business abroad, esp. in order to take advantage of lower costs or less stringent regulation;
off limits - out of bounds, not acceptable;
crackdown - severe measures to restrict or discourage undesirable or illegal activity or behavior;
to salt away - to secretly store something, esp. money;
ČSA Cargo - not owned by an offshore company, but there are doubts about the beneficiary owner of its parent, Central European Holding a.s.;
beneficial owner - the true owner of a security, although it might be registered in someone else's name;
intimate - involving very close connection.