Disclosure.Cymru
Hidden Tax Money
How is this tax money being hidden
To comprehend this we will need to use an example –
a) Lets say you have an individual who takes home £1000 per month and he has a budget of £700 per month to pay for his food, gas, electric, mortgage etc. The remaining £300 per month is his disposable income.
I am sure you will agree with us that this individual has two sets of accounts he needs to manage, one being his monthly budget and the other being his bank account.
b) Lets say this individual is say 58 and since he was 18 he has been investing £150 per month of his disposable income into stocks, shares, property, bonds etc. I am sure you will agree that with compound interest this would have grown to a significant sum of money, possibly even become a 6 figure amount - maybe of a couple of hundred thousand pounds.
Now the individual has his budget, his bank account and an investment portfolio.
c) Now lets say this individual has well off parents to whom he can go to in times of trouble -
One month his car breaks down and the repair bill is £500 so on paper he needs £1200 for that month in his budget . Rather than transfereing money from his invesment portfolio into his bank account to balance his budget for that month he goes to his parents and shows them his budget of £700 and his disposable income of only £300, he does not mention his investment wealth, his parents think the budget is all that there is, so they lend him £200 towards getting his car repaired.
d) The following month, his boiler breaks down and it needs £800 to repair it. Again he goes to his parents showing he needs in his budget for that month £1500 to cover his outgoings and the repair and they give him £500 towards repairing the boiler. Nothing is mentioned about the investment wealth.
e) Now substitute the "individual" for "the Local Authority" and "the parents" for "the taxpayers", and times all of the above figures by 1000 and you now have a comprehension of how government accounting works.
Remember -
Enron promoted their profit and hid their debt. Government does the exact opposite: they promote debt and hide profit.
Governments have two sets of books, one is the budget and the other is their off balance sheet investments, you will only ever hear about the budget due to the amount of "public" money involved with these investments.
When you vote, you are actually just deciding who gets access to the investment till.
There are several creative accounting schemes that Local Authorities use to move their money off balance sheet and into investments.
1) The Long Term Liabilities Trick- With the changes in government accounting over the last 15 years, they now project out their “liabilities” 2-35+ years cross-matched with 1 year of income. If Bill Gates, you, or I did the same, we all would look like we are on death’s financial door.
If we read the affidavit 4 of Mark Cawkwell we can see how this scam works. Mark is a public sector whistle blower living in south wales and in his affidavit he has attempted to expose what is known as the "Long Term Liability Scam".
Upon discovering creative accounting hiding taxpayer monies in his Local Governments accounts, he with-held his council tax payments in protest, upon being summoned to Magistrates Court he used his affidavit as a defence citing fraud, misrepresentation and maladministration had committed against him. However the Magistrates Court would not look at the affidavit and said it did not have the jurisdiction to look at an allegation of fraud. The court referred him to the regulating bodies of “The Public Sector Ombudsman and Audit Wales.
However the above bodies when approached stated that either the Local Authority wasnt regulated by them or that they wouldnt be investigating the matter as the Local Authority was following the appropriate reporting standards for Local Authorities. Unfortunately these reporting standards are written by Government bodies for other Government bodies to follow and therefore allow Local Authorities to use creative accounting to hide taxpayer monies in this way.
Affidavit 4 of Mark Cawkwell
To comprehend this we will need to use an example –
a) Lets say you have an individual who takes home £1000 per month and he has a budget of £700 per month to pay for his food, gas, electric, mortgage etc. The remaining £300 per month is his disposable income.
I am sure you will agree with us that this individual has two sets of accounts he needs to manage, one being his monthly budget and the other being his bank account.
b) Lets say this individual is say 58 and since he was 18 he has been investing £150 per month of his disposable income into stocks, shares, property, bonds etc. I am sure you will agree that with compound interest this would have grown to a significant sum of money, possibly even become a 6 figure amount - maybe of a couple of hundred thousand pounds.
Now the individual has his budget, his bank account and an investment portfolio.
c) Now lets say this individual has well off parents to whom he can go to in times of trouble -
One month his car breaks down and the repair bill is £500 so on paper he needs £1200 for that month in his budget . Rather than transfereing money from his invesment portfolio into his bank account to balance his budget for that month he goes to his parents and shows them his budget of £700 and his disposable income of only £300, he does not mention his investment wealth, his parents think the budget is all that there is, so they lend him £200 towards getting his car repaired.
d) The following month, his boiler breaks down and it needs £800 to repair it. Again he goes to his parents showing he needs in his budget for that month £1500 to cover his outgoings and the repair and they give him £500 towards repairing the boiler. Nothing is mentioned about the investment wealth.
e) Now substitute the "individual" for "the Local Authority" and "the parents" for "the taxpayers", and times all of the above figures by 1000 and you now have a comprehension of how government accounting works.
Remember -
Enron promoted their profit and hid their debt. Government does the exact opposite: they promote debt and hide profit.
Governments have two sets of books, one is the budget and the other is their off balance sheet investments, you will only ever hear about the budget due to the amount of "public" money involved with these investments.
When you vote, you are actually just deciding who gets access to the investment till.
There are several creative accounting schemes that Local Authorities use to move their money off balance sheet and into investments.
1) The Long Term Liabilities Trick- With the changes in government accounting over the last 15 years, they now project out their “liabilities” 2-35+ years cross-matched with 1 year of income. If Bill Gates, you, or I did the same, we all would look like we are on death’s financial door.
If we read the affidavit 4 of Mark Cawkwell we can see how this scam works. Mark is a public sector whistle blower living in south wales and in his affidavit he has attempted to expose what is known as the "Long Term Liability Scam".
Upon discovering creative accounting hiding taxpayer monies in his Local Governments accounts, he with-held his council tax payments in protest, upon being summoned to Magistrates Court he used his affidavit as a defence citing fraud, misrepresentation and maladministration had committed against him. However the Magistrates Court would not look at the affidavit and said it did not have the jurisdiction to look at an allegation of fraud. The court referred him to the regulating bodies of “The Public Sector Ombudsman and Audit Wales.
However the above bodies when approached stated that either the Local Authority wasnt regulated by them or that they wouldnt be investigating the matter as the Local Authority was following the appropriate reporting standards for Local Authorities. Unfortunately these reporting standards are written by Government bodies for other Government bodies to follow and therefore allow Local Authorities to use creative accounting to hide taxpayer monies in this way.
a. An affidavit is a statement of Truth.
b. It is contempt of Court to sign a statement of truth knowing that the information is false.
c. Affidavits serve as evidence in civil actions and criminal prosecutions in certain instances.
d. An un-rebutted affidavit stands as truth in commerce. Claims made in an affidavit if not rebutted, emerge as the truth of the matter. Legal Maxim: "He who does not deny, admits."
e. An un-rebutted affidavit becomes the judgment in commerce.
2) Loan/Investment Trick - Local Authorities 20-30 years ago had so much cash coming in the door they did not know what to do with it all. So, a scheme went into effect of promoting debt, and then funding that debt with their own cash: turning cash into debt as an investment for them, and as a “parking zone” for that cash.
a) You may have one Local Authority loaning money to another Local Authority (this can sometimes be seen in their accounts).
b) A local government may have several million invested (off balance sheet) with a bank, building society, or insurance company, and that institution is now loaning (on the balance sheet) that same local Authority several million which its paying interest on.
c) A Local Authority may have massive investment in a foreign country and their investment manager in that country makes the funding “look” like it is coming from that country. I.e. A large investment from a company based in China or India, however that Chinese/Indian based company may have a 50-75% of its shareholders belonging to the UK public sector.
3) Funds Trick
- A Local Authorities "Net Assets" are also called its "Reserves". The Funds Trick is where Local Authorities removes money from the "Usable reserves" and places it into "Unusable reserves", stating the money is reserved for a specific project.
Have you ever noticed that when a local authority project gets passed in your area for a construction or land development, the actual project itself sometimes isn’t scheduled to begin until months or years in the future? It’s even written in the project plans that the project wont start until a set future date.
Well the money for that project is immediately released or set aside upon aproval of the project. Now you might ask yourself, if the money is there why doesn’t the project begin immediately?
Here is the answer…
That “taxpayer money” gets sent directly into what we’ll call a government “holding account” for a while, sometimes years and years before that public project actually begins.
Now, that money doesn’t just sit there… It is invested. It gains interest. It builds up extreme wealth – months or years of interest and capital gains on investments from that originally taxpayer funded money. This is all transpired digitally, of course.
But when it comes time to use that original amount of money for the project of which it was intended months or years later, the capital gains (profits) of that supposedly dormant money are separated from the original amount placed into the “holding account” and stay in the governments discretionary investment coffers and are then reinvested not for the benefit of the people, but for the wealth and profit of the local authority. The problem and the inherent crime here is this – that profit is no longer considered tax-payer (public) owned money, since it was earned by investment or by accrued interest. That “extra money” goes elsewhere… mainly into other investments or funds which grease the pockets of the “in the know” politicians and companies and other people and groups involved. And the cycle goes on and on and on and on…
Also as the money in "Unusable Reserves" is no longer "Usable" the Authority can cry poverty stating that it does not have enough in its budget and the public has to accept increases in taxes, school closures, austerity and cuts to services.
Some examples of "Unusable Reserves" are -
Earmarked Reserves
Revaluation Reserve
Pensions Reserve
Capital Adjustment Account
Financial Instruments Adjustment Account
Short Term Accumulating Absences Account
Have you ever noticed that when a local authority project gets passed in your area for a construction or land development, the actual project itself sometimes isn’t scheduled to begin until months or years in the future? It’s even written in the project plans that the project wont start until a set future date.
Well the money for that project is immediately released or set aside upon aproval of the project. Now you might ask yourself, if the money is there why doesn’t the project begin immediately?
Here is the answer…
That “taxpayer money” gets sent directly into what we’ll call a government “holding account” for a while, sometimes years and years before that public project actually begins.
Now, that money doesn’t just sit there… It is invested. It gains interest. It builds up extreme wealth – months or years of interest and capital gains on investments from that originally taxpayer funded money. This is all transpired digitally, of course.
But when it comes time to use that original amount of money for the project of which it was intended months or years later, the capital gains (profits) of that supposedly dormant money are separated from the original amount placed into the “holding account” and stay in the governments discretionary investment coffers and are then reinvested not for the benefit of the people, but for the wealth and profit of the local authority. The problem and the inherent crime here is this – that profit is no longer considered tax-payer (public) owned money, since it was earned by investment or by accrued interest. That “extra money” goes elsewhere… mainly into other investments or funds which grease the pockets of the “in the know” politicians and companies and other people and groups involved. And the cycle goes on and on and on and on…
Also as the money in "Unusable Reserves" is no longer "Usable" the Authority can cry poverty stating that it does not have enough in its budget and the public has to accept increases in taxes, school closures, austerity and cuts to services.
Some examples of "Unusable Reserves" are -
Earmarked Reserves
Revaluation Reserve
Pensions Reserve
Capital Adjustment Account
Financial Instruments Adjustment Account
Short Term Accumulating Absences Account
4) Debt Servicing Funds Trick
- This is a trick where a Local Authority could settle a debt immediately with available funds but instead chooses to pay the debt off over many years (including the interest). This keeps the Local Authority in perpetual state of debt in the taxpayer/residents eyes and the money that could have settled the debt can then gradually be moved off balance sheet into investments.
But is this money ours
