ANZ's intricate tax dodging continues

In an article that appeared in the Sunday Star Times, ANZ in intricate deal on eve of court battle (13 Dec), reporter Rob Stock details how ANZ (but not just not them) used shonky loan deals with foreign banks labelled "money go rounds" to avoid tax.

Rob Stock gives examples of one particular money go round set up within New Zealand:

The BNP Paribas transaction is not the only curious-looking structure on ANZ National Bank's books. There are several related-party loan deals that have a similar appearance to tax dodging money-go-rounds.

Cortland Finance, for example, was owed $437m by ANZ National Bank at the end of September 2008, though it is a wholly owned subsidiary of Arawata Finance, which is 100% owned by ANZ National Bank. In other words, ANZ had put capital into the company and then borrowed it back again.

Similarly, ANZ National Bank owes more than $2b to its wholly owned subsidiaries Tui Finance and Tui Endeavour, money that represents capital put in by the bank. Also at the end of September 2008, Arawata Finance was owed $717m by ANZ National Bank, but it owed the bank $533m.