Letters to the editor

FATCA and tax evaders

SIR – In response to your broadside against the Foreign Account Tax Compliance Act (FATCA), I would like to point out that the American Treasury has tailored the rules to minimise burdens and costs and has considered hundreds of comments from financial institutions and foreign governments (“Dropping the bomb”, June 28th). As a consequence, many low-risk entities, accounts and payments are exempt from FATCA altogether.

It is also important to note that FATCA’s requirements are the same for all American taxpayers—expats are treated no differently. All citizens are required to comply with United States’ tax laws and FATCA is a tool to enforce them. Tax evaders should rightly worry that FATCA will reveal their illicit activities.

The work by the G20 and OECD on the common reporting standard for tax evasion draws extensively on FATCA’s intergovernmental approach. With more than 80,000 foreign financial institutions registered to comply, the worldwide effort to thwart tax evasion is going well.

Mark J. Mazur
Assistant secretary for tax policy
Treasury Department
Washington, DC

SIR – I have been an international tax adviser for 35 years and am always amazed that America ignores the normal rules that apply between countries and simply does what it wants. A cynic might view the real reason for this legislation as helping the competitive position of American banks. It would not be the first time. There are other tax rules that make it very difficult for Americans to invest in many foreign investment funds and some regulations that also favour American banks.

The most surprising thing is that other countries just let this happen. Instead of threatening retaliatory measures, such as fining any American bank that opens accounts without requiring proof of identity, many have entered into agreements to accept FATCA, even though reciprocity is not on offer and the United States is not interested in international moves for more transparency. What is good for Swiss banks is not good for American banks.

Rumour has it that many foreigners keep their money in America because secrecy there is far better than most tax havens.

John Graham
International tax counsel
Amsterdam

Two-state solution

SIR – Eduard Shevardnadze (Obituary, July 12th) was a realist, rationalist and indeed a silver fox in diplomacy. But he was not the only politician to have been the foreign minister of one country and the head of state of another.

Almost two centuries ago, Ioannis Kapodistrias was the foreign minister of the Russian empire at the service of Alexander I. He later became the first head of state of newly liberated Greece.

Antonios Kouroutakis
Oxford

Change in the Arab world

SIR – You were right to note the differences in Arab societies (“Tethered by history”, July 5th). The centuries-old kingdom of Morocco, for example, is more liberal and stable than most of the “progressive” republics created in the aftermath of European colonialism. Unlike oil-rich Arab states, Morocco has no option but to balance security and openness in a “sultanic democracy.”

It is true that only Arabs can reverse the decline of their civilisations, as no one else will do it for them. But for this to happen the entire Islamic legacy—sacred corpus and all—must be subjected to rigorous intellectual analysis, much like when Judeo-Christian traditions were scrutinised by the probing questions of Enlightenment thinkers. Our modern world, with its expectations for freedom, human rights and the pursuit of happiness, is the outcome of an intellectual revolution that shook the foundations of sclerotic European regimes and gave birth to the modern world.

Islamic countries, and Muslims in general, have yet to come to terms with issues that unsettle their world view. Until they do, I am afraid we will continue to hear more about Islam’s “golden age” than we will about the faith’s adherents joining the universal march for innovation and prosperity.

Anouar Majid
University of New England
Portland, Maine

SIR – If Arabs are ever lucky enough to get leaders who show true courage and vision then maybe we will get a real push for education, the abolition of religious schools and an end to laying the blame for their troubles on Western countries. Maybe they will also stop demonising Israel. Israeli Arabs have more rights than the citizens of Arab-ruled countries. This should encourage commercial, scientific, educational and cultural exchanges with their neighbours.

Henry Politi
Brussels

SIR – Regarding the “Tragedy of the Arabs” (July 5th), this is the end result of the burning of the books of Averroes and the near-excommunication of Taha Hussein coupled with centuries of despotism and cultural repression. The worst is yet to come.

By the way the new “caliph”, Abu Bakr al-Baghdadi, wears a Rolex watch.

Walid Joumblatt
Beirut

* SIR – The saddest part of the story of the Arabs is that the cycle is continuing with limited hope for improvement. Many of us in the Arab world hold to the conspiracy theory dictum. We tend to blame the world for our predicament and simply accuse the United States for all what is happening as part of an elaborate scheme. All terrorist attacks are faked, Osama bin Laden did not exist and even ISIS is a creation of the Obama administration, to name just a few theories that are out there.

We do not seem to understand that the world is not obsessed about our demise and we do actually have some control of our destiny. It is surprising that many educated and worldly members of Arab society believe strongly in this principle of conspiracy, which puts more limits on progress and improvement.

Amin Kawar
Amman, Jordan

* SIR - I recognised your cover photo of Salim bin Kabina, which was taken by Wilfred Thesiger during his travels in the Rub al Khali (the Empty Quarter) in Saudi Arabia in the 1940s and early 1950s. Bin Kabina was one of Thesiger’s companions on his trips. I believe your cover photo was taken in early 1950 in an area of Abu Dhabi.

I was fortunate to have met Sir Wilfred in the early 1970s at the home of his friend, Sir John Verney. I had recently read Thesiger’s “Arabian Sands”. He was the first foreigner to cross the Empty Quarter, travelling entirely without modern support in dangerous conditions in the same manner as his Arab companions. I understand they called him Mubarak bin London (the blessed one from London).

Sir Wilfred answered my rather naive questions readily and, in his answers, he revealed his deep admiration of the Bedouins and their way of life and his sadness in realising that that style of life would not last long.

Reynold Dacon
Santa Monica, California

* SIR - One of the most significant factors holding back the Arabs is the constrained role of women in Arab society and the absence of women in power. It is time for the world to stop feeling it is politically incorrect to state an obvious fact. The Arab world continues to draw upon only half of its population for its development. Until women play a larger and more significant role, its development will suffer.

Barbara Felitti
Huntington, Vermont

A real buzz to the economy

SIR – It was with dismay that I read Lexington reducing the contribution of the honey bee to a mere “$24 billion” (July 5th). These unsung workers are the linchpin of our entire world economy. Pause for a moment and consider what would happen to the price of food if we lost our pollinators. According to Christopher O’Toole in “Bees: A Natural History”, between 2009 and 2010 beekeepers in America lost 42% of their bee colonies because of colony collapse disorder, pesticides, parasites, disease and a loss of habitat.

Carol Montclaire
Wilsonville, Oregon

Match-fixing

* SIR – Your article suggests that more should be done at the law enforcement level to stop match-fixing in football (“How high does it go?” July 12th). We agree that global and coordinated efforts are needed although it is equally important to focus on the other side of the coin. It takes people inside the game to fix matches: players and/or referees. Education and prevention is essential: understanding how to avoid becoming embroiled in this criminal activity and the repercussions. This can only be done by regular training sessions for each age group and leadership from the top at all levels, from FIFA to the lower leagues.

Under most codes of conduct players are obliged to report any advances to fix a match. Currently FIFA's hotline which goes directly to an investigator does not inspire trust or help people in lower leagues. What is needed is effective, anonymous and independent channels for whistleblowers. Some football associations, in Austria, Germany and Scotland, for example, are piloting such solutions that allow anonymity and counselling. Finding the best one should be as important as catching the criminals in the fight against match-fixing.

Anja Osterhaus
Programme Manager for Europe and Central Asia
Transparency International
Berlin

Wise heads

SIR – I have my own theory about why today’s young are increasingly well-behaved (“Oh! You pretty things”, July 12th). In my own binge-drinking youth the scale of embarrassment that my exploits caused were restricted to the handful of friends I was with at the time. This is no longer the case. Every vomit in a bar, ejection from a nightclub or wide-eyed indulgence is now fair game for sharing on Twitter, Snapchat, Facebook, etc. Nothing makes one behave like knowing the world is watching

Ryan Dall
Harrogate, North Yorkshire

SIR – I read with interest and concern, but not surprise, of Argentina’s “teenage” attitude to rules (“The Luis Suárez of international finance”, July 5th). My concern would have been lessened and my surprise greatly increased had I known that a teenage attitude these days means being a law-abiding citizen, abstaining from drink, drugs and casual sex and studying hard.

Daniel Olive
London

A pleasurable vacation

SIR – With reference to funny placenames (Letters, July 12th), how could you have missed Dildo Run in Canada? I have always wanted to go there purely for the sake of bringing back a souvenir proudly bearing the name.

Dianna Wuagneux
Castleton, Vermont

* Letter appears online only