Secret HSBC ''tax dodger'' files cause global shockwaves

Secret documents published online alleging banking giant HSBC helped wealthy customers dodge millions of dollars in taxes caused global shockwaves Monday and spotlighted the financial dealings of the world''s ultra-rich. The cache of files made public in the so-called SwissLeaks case included the names of celebrities, alleged arms dealers and politicians - though inclusion on the list does not necessarily imply wrongdoing.
The documents published at the weekend claim the London-based bank''s Swiss division helped clients in more than 200 countries evade taxes on accounts containing $119 billion (104 billion euros). The huge cache of files from Europe''s biggest bank was stolen by an IT worker in 2007 and passed to French authorities, but had not been previously made public.
The International Consortium of Investigative Journalists (ICIJ) obtained the files via French newspaper Le Monde and shared them with more than 45 other media organisations world-wide. The documents showed that HSBC opened Swiss accounts for international criminals, businessmen, politicians and celebrities, according to the ICIJ. The revelations renewed calls for a crackdown on sophisticated tax avoidance by the wealthy and multinational companies. Tax avoidance is legal, but tax evasion is not.
"HSBC profited from doing business with arms dealers who channelled mortar bombs to child soldiers in Africa, bag men for Third World dictators, traffickers in blood diamonds and other international outlaws," ICIJ reported. A range of current and former politicians from Russia, India and various African countries, as well as Saudi, Bahraini, Jordanian and Moroccan royalty, and the late Australian press magnate Kerry Packer were named in the files.
Following the bombshell disclosure, there were calls for a Swiss probe against the bank, which is already facing prosecution in France and Belgium. "I am angry," former Swiss foreign minister Micheline Calmy-Rey told public broadcaster RTS. Global fallout on Monday included a Belgian judge said to be considering international arrest warrants for directors of HSBC''s Swiss division, while in Britain a political row was triggered, with the main parties blaming each other for not taking action.