A2 Nation August 14 – 20, 2009 The Epoch Times
No Way to Hide for U.S. Inmates Moved
Out of Chino
Tax Cheats After UBS Deal Prison After Riots
mans and Britons,” Asher Ru- stronghold, which has since
binstein, a partner at law firm agreed to be more tax trans- By IVAN VELINOV At the time of the riot, the Chino
Rubinstein & Rubinstein, parent to save its financial Epoch Times Staff prison held almost 6,000 inmates,
said. “Switzerland will no lon- industry. This week, Liech- nearly twice its capacity.
ger be a tax haven.” Tax law- tenstein signed a deal with State prison authorities in Califor- Last week, a three-judge federal
yers say many of UBS’s com- Britain to to push 5,000 in- nia have finished moving out over panel ordered the state of Califor-
petitors are sending letters to vestors in Liechtenstein to 1,000 inmates from the California nia to reduce population in its over-
U.S. clients asking them to disclose accounts. Institution for Men in Chino, after crowded prison system. The judges
transfer their funds to a U.S. “It is good that the Swiss a racially motivated weekend riot ruled that there is “overwhelming”
tax-compliant entity. government supported the destroyed their housing units. evidence that overcrowding of the
However, some secret ac- UBS solution, but they have Eleven inmates are still hospital- state prison network is the primary
count holders, who range to be aware that there will ized, according to Terry Thornton, a reason for the lack of appropriate
from well-travelled business- now also be many similar spokeswoman for the California De- medical and mental health care.
men to Jewish families who discussions with other coun- partment of Corrections and Reha- The judges ordered the state to
had fled hostile countries, tries,” said Thomas Borer, a bilitation, and one inmate’s critical reduce its prison population by over
could not stomach transfer- former top Swiss diplomat. condition was upgraded to serious. 40,000 prisoners within the next
ring between 40 and 60 per- But the devil is in the detail In the weekend riot, 250 inmates two to three years.
cent of their hidden fortunes and tax transparency advis- were hurt, and the California prison The ruling affects the California’s
to U.S. tax authorities. ers said the UBS settlement was badly damaged and remained 33 adult prisons, most of which now
“For every three to four cli- could disappoint as it will not uninhabitable, after a racial riot operate at double capacity with about
ents that come here, there are likely involve any automatic among African-American and Latino 150,000 inmates, housed in facili-
one or two who, when we do exchange of information. prison gangs, according to a report. ties designed to hold about 80,000
the numbers, say: I cannot Switzerland will do away Over the weekend one dormitory people.
write a cheque that big. I will with its artificial distinction was destroyed by fire that broke out Chino and other California pris-
take my chances,” Rubinstein between tax evasion and tax during the melee. Prisoners used ons are changing the historic prac-
said. fraud, but will not go as far as pieces of metal from lockers, de- tice of separating inmates by race,
totally lifting the veil from its stroyed beds, and ripped off pipes to and according to a 2005 Court deci-
European Action? clients’ accounts. use as weapons. The reception center sion that found racial segregation to
UBS Chief Executive Os- “Swiss banks have helped west was badly damaged by the riot be illegal, now inmates from differ-
wald Gruebel said earlier this each other to break laws, in and was rendered uninhabitable. ent races share cells. The weekend
month he expects the bank’s the age of globalisation, that Prison authorities have not re- rioting took place in barracks that
tax dispute to prompt action has to change,” Raymond leased new information on what were fully integrated.
from European governments Backer, a director at non-profit started the riot, but prison authori- The California prison system can-
Tax evaders are running out of hiding places as bank secrecy laws dissolve. TimoThy A. ClAry/AFP/GeTTy as well as higher costs for pri- organisation Global Financial ties said that the fight started along celed visiting hours over the week-
imAGes vate banks. “Other govern- Integrity. “There is no place ethnic lines. The Chino prison facil- end and is on lockdown indefinitely,
ments will closely watch what for Swiss bank secrecy.” ity has also a record of other riots in according to a spokesperson. The
is going on there,” Gruebel Private banks will have to the past, and a several inspection inmates were either transferred
ZURICH (Reuters)—The ceal assets, albeit without for- to stop offering offshore ac- told reporters. “It is not a very learn to live in a world where reports since 2006 determined a or en route to one of four other
days of secret bank accounts mally breaching Swiss bank counts to U.S. citizens and is good development for the bank secrecy is not a competi- record of poor maintenance, over- correctional institutions within
are numbered for U.S. taxpay- secrecy. closing down existing unde- wealth management indus- tive advantage, at least when it crowding, and riots. California.
ers and European tax dodgers “It is clear that U.S. citizens clared accounts. try. There will be additional comes to U.S. and European
should also watch out after that formally believed they Many other Swiss and for- costs for compliance, but citizens.
the United States and Swiss could hide money in Swit- eign banks have also already then, on the other side, one “Pressure (on Switzerland)
bank UBS AG agreed to set- zerland and other offshore started to kick out U.S. hold- should not help other people has become massive and we
tle a tax evasion case.
Details of the deal were
centres will now conclude
it is not safe,” said Michael
not made public after the Weinstein, a lawyer at law
ers of secret accounts or force
them to comply, leaving them
to evade taxes.”
European governments
little room to hide in antici- have already been fighting
are in a phase were countries’
public deficits are very, very
high,” Deutsche Bank Chief When the Economy Is
Tough, History Pays
settlement was initialled on firm Cole Schotz who is ad- pation of further action by tax dodgers and Germany Executive Josef Ackermann,
Wednesday. vising UBS clients. the U.S. Internal Revenue went as far as to pay for client a Swiss, told a conference last
But tax experts expect the “The deal is going to force Service. data stolen at Liechtenstein’s week when asked about the
settlement to involve the dis- individuals to come forward “For U.S. taxpayers it is biggest bank LGT about a UBS tax issue.
closure to U.S. tax authorities and reveal those secret ac- going to be impossible to hide year ago. “Can we maintain the dif-
of thousands of names of U.S. counts voluntarily. If not, money in Switzerland and it The affair triggered mas- ference between tax fraud
residents suspected of using UBS will.”
secret Swiss accounts to con- UBS has already promised
is just a matter of time that sive client withdrawals from
this is the case also for Ger- the tiny banking secrecy
and tax evasion? The answer
is no.””
Philadelphia is the nation’s fastest
growing city in international visits
By PAMELA TSAI excessive bonuses and corporate ex-
Epoch Times Staff travagance regarding offsite meet-
Eunice Kennedy Shriver, 88, Passes Away
ings and events have received ex-
PHILADELPHIA—With 710,000 tensive media coverage and public
international visitors coming to criticism. Not surprisingly, meetings
Philadelphia in 2008—a 29 percent in resort destinations have been most
increase from 2007 and the largest likely to be cancelled as indicated in
increase for any U.S. city—Mayor the PCMA survey results.
Michael Nutter of Philadelphia was Philadelphia, not a resort destina-
Obama, Biden remember Special Olympics founder more than happy to celebrate the
work of the Philadelphia Convention
& Visitors Bureau (PCVB).
In the afternoon of July 28, 2009,
tion, clearly benefits from this trend.
According to the PCVB annual re-
port, as corporate events scheduled
dropped on average by 15 percent
Mayor Nutter joined 400 members nationally, Philadelphia only slipped
of PCVB, Philadelphia’s official 7 percent to 8 percent.
By HELENA ZHU Tourism Promotion Agency, at its Ferguson said Philadelphia is
Epoch Times Staff annual meeting at the Doubletree closely associated with history in
Hotel Center City. people’s minds.
NEW YORK—Eunice Kennedy At the meeting, titled “Times are The history factor also gave Phil-
Shriver, the sister of former Presi- Tough—We’re Tougher,” PCVB adelphia a boost in international
dent John K. Kennedy and founder Chairman Nick DeBenedictis un- visitation. Based on the U.S. De-
of the Special Olympics, died at veiled PCVB’s 2009 Annual Report partment Commerce report, Phil-
age 88 on Tuesday morning at and Business Plan to boost the city’s adelphia enjoyed the highest per-
Cape Cod Hospital in Hyannis, economy with tourism. centage growth (29 percent) in
Mass., after a series of strokes. The annual report revealed some international visitation among the
Before her death, she was accom- interesting trends of the hospital- top 20 most-visited international
panied by her husband, her five chil- ity industry. In 2008, Philadelphia cities. International visitors made a
dren and her 19 grandchildren. received a total of 29.75 million great contribution to Philadelphia’s
visitors, both domestic and inter- economy.
national, which generated $9.32 bil- Among the top eight countries
Currently, the lion in economic impact, including ranked by visitors’ spending in
153,100 hospitality-related jobs and Philadelphia, three are Asian: Japan,
Special Olympics 1.35 billion in taxes (federal, state, South Korea, and China.
and local).
serve more than Individual visitation contributed
more than conventions. In the city’s
three million hotel market, individual visitors con-
4
tributed more than half of the total
athletes with revenue (56 percent), compared with
conventions (39 percent).
mental disabilities Jack Ferguson, executive vice TM
president of PCVB, attributed the
around the globe. current trend—shifting from cor-
Guess the hidden saying,
phrase or word(s) suggested
porate events and conventions to by the graphic below
individuals—to the media debacle
“Michelle and I were deeply sad- AIG incurred when it scheduled lav-
dened to learn about the passing ish corporate events in the midst of
of Eunice Kennedy Shriver,” said accepting federal aid.
President Obama in a statement. According to a recent national sur-
VIFE
V
“Eunice was many things to many vey conducted by the Professional
people: a mother who inspired her Convention Management Associa-
children to serve others; a wife BIG HEART: Eunice Shriver seen with mentally handicapped children in Paris 1969. Shriver, founder of the Special Olympics tion (PCMA) and American Express,
who supported her husband Sar- was on a trip to Europe preparing children for the 1970 Special Olympics. PhoTo by liAison more than 4 in 10 (44 percent) cor-
Alan Morgan
gent in the Peace Corps and in pol- porate meeting planners stated they
itics; and a sister to her siblings.” expect a decrease in meetings in
Obama said that above all, she athletes with mental disabilities selves, and to experience joy in life Aside from being sister to JFK 2009 and 2010 due to image, pub-
C
will be remembered as the founder around the globe. through service.” and Sen. Robert F. Kennedy, licity, and policy considerations. The
Presented By
of the Special Olympics, who Biden also praised her. In a state- Biden then noted some of her Shriver was also the wife of 1972 study also found that the economic
taught the world that no physical ment, he referred to her as, “One legacies, including her summer vice presidential candidate R. Sar- impact of cancelled corporate events,
or mental barrier can restrict the of those rare individuals whose camps across the country that gave gent Shriver, the mother of former due to publicity concerns, is greater
“power of human spirit.” energy and spirit were contagious. young people with intellectual dis- NBC newswoman Maria Shriver than that of the general economic
Currently, the Special Olympics She inspired everyone around her abilities opportunities to engage and the mother-in-law of Califor- downturn.
serve more than three million to be better, to see beyond them- in sports and companionship. nia Gov. Arnold Schwarzenegger. In the past six months, Wall Street (Solution on Page A6)