The Tax Free Tour - tax havens and outsourcing

A doc about the stateless offshore world of tax havens. 

Why does Apple only pay 1.9% tax?
The Big Four : Price Waterhouse Coopers, Deloitte, Ernst & Young, KPMG

Former KPMG man : "They are the constant feature of every tax haven. Without one of those firms, or maybe all of those firms being present, you really will not have a tax haven."

He describes how the Big Four as he calls them are hired by governments to guide financial rules that benefit the Big Four.

So remember back in Sept 2011 when Steve gave Deloitte a $20-million contract to advise federal cabinet and senior officials on how to trim $4 billion from government program spending in order to balance the books by 2014?  

Ah -an outsourcing firm is being hired to recommend more outsourcing we said at the time, remembering a 2010 CBC report on the 80% increase in a parallel civil service made up of consulting firms.

At the same time, Deloitte, CORE-outsourcing, and Ryerson's Ted Rogers School of Management teamed up to produce a joint research initiative using Deloitte's "proprietary outsourcing maturity model". It was called The 3 E's of Effective Outsourcing Governance -Experience, Essentials, and Empathy -because that sounds better than Externalizing accountability, Eff Off Unions, and Economic entropy.

They projected that "almost $25 billion worth of outsourcing contracts in Canada [are] to be renewed or renegotiated over the next three years."

Pictured at the top of their 3 E's report are Ray Lavitt, President of CORE; Ian Chan, Principal at Deloitte; and Ron Babin, Professor at Ryerson.  
All three have outsourcing and/or offshoring creds : 

• Lavitt was "VP, Global Sourcing at CIBC" before becoming CEO of CORE
• Chan is "Leader of Deloitte Canada's Outsourcing Advisory Practice" and 
• Babin was "a partner at Accenture and at KPMG", according to his Ryerson bio, and "his area of research is IT Planning and IT Governance with a specific focus on IT outsourcing and off-shore delivery."

Lavitt and Babin featured in an article a month ago at CBC : Offshore outsourcing 'not always a negative thing'

Lavitt is President of CORE; Chan and Babin are CORE board members.

So how did Steve's outsourcing report from Deloitte work out for us?
FinMin Jim Flaherty announced a trim to Ottawa’s annual spending by $5 billion a year in budget cutbacks in programs and services to eliminate the $26-billion deficit by 2015.

As of Dec. 31, 2012, 16,220 public service positions were eliminated, even though according to Canadian Centre for Policy Alternatives in 2011 :

Over the past five years, personnel outsourcing costs have risen 79%. While federal departments have had their budgets capped, expenditures on outside consultants have not been touched and remain above $1 billion a year,” says Macdonald.

Wednesday May 8 update : 

Star investigation: Millions in taxpayer-funded consulting work kept secret

A Star investigation has found 90 per cent of the $2.4 billion paid out in the past decade comes with no description of the work done — and more than a dozen departments refuse to provide details when pressed.

Thursday May 9 update :
Hundreds of public servants at seven departments received notices today that their jobs are on the block as part of the Conservative government’s ongoing spending cuts

Watch the doc. 
See also International Consortium of Investigative Journalists/offshore
.