The Icelandic government has submitted a bill to parliament which would allow the assets of people under investigation by the State Tax Investigation office to be frozen.
The bill’s explanatory statement says the aim is to prevent people avoiding their tax obligations by moving funds or assets from their own names to other people.
Under the proposed law, as soon as a person has been informed of the tax investigation being carried out on them, they will no longer be able to disperse their assets by selling them, using them as collateral for loans, or by other legal procedures.
Mbl.is reports that it is unsure under what circumstances the law would be needed; but that tax investigators look likely to start chasing several big cases following the banking collapse last autumn.
Of course those people have been waiting 11 months before moving their assets…
You would be surprised to find out how many expensive cars – like Lamborgini or expensive yachts are driven by homeless, unemployed drivers/sailors :-) Without any assets to be frozen of course.
It also might not be so easy to inform the person in question about investigation ;-)
Funny this story comes out only weeks after the Guðmundsson brothers transfer all their debts to their father. This brings a new meaning to the term “inbred”
Why on earth weren’t these laws introduced many months ago? It seems the investigation and its related legalities are moving at the rate of glacial change. And the prosecutions probably won’t arrive until the next ice age.
That would be Armaggedon here. Greetings from this rotten Mediterranean place :D
I know about a guy who messed up his bussiness, made huge debts and was declared bankrupt. He still drives around in a huge mercedes. He simply transferred his assets to his girlfriend, simple as that.
Laws made general like this are dangerous.
Giving burecrats without court order this powers is just going to breed abuse. This abuse more than enough with so called anti money laundering laws.
Eva Joly has had sensible thing to say on this subject –
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=337746
“One cannot start with freezing people’s assets, first criminal behavior must be proven,” Joly told Fréttabladid, explaining that it’s extremely complicated to decide whether and when assets of suspects should be frozen.”
And before
http://icelandweatherreport.com/2009/06/an-interview-with-eva-joly.html
” IWR: There has been much discussion in Iceland about freezing the assets of those who have been instrumental in creating this mess. Is that a viable option?
EJ: Yes, it is viable to freeze assets, but first it must be established what the offenses were, who benefited from them, and so on. After that, assets can begin to be confiscated. ”
…
” IWR: When the investigation was getting underway it seemed that bank secrecy laws were very stringent here in Iceland and might be hindering the investigation. Is that still the case?
EJ: Bank secrecy laws are not an issue, because they cannot be opposed to a criminal investigation. “
My father’s friend put up his own business not long after they ended up with nothing and have declared bankruptcy, mismanagement of funds was the issue.