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O La La! Madame Lagarde (IMF) Does Not Pay Taxes…

Ο la la! Quelle blamage! What a mean exposure! Madame Christine Lagarde, the head of IMF, who suggested parents of impoverished Greek children should pay their taxes, does not pay taxes herself. No, she is not exactly a tax-dodger. She simply enjoys a tax-free and lots of bonuses status due to her  international work place. Of course, her tax free salary and her living large and sunbed lifestyle are paid by international taxpayers. No, I am not jealous. but I can’t hide my pleasure to see  who’s talking…

 

Lagarde Tax Lessons: 1 Tax, 2 Tax, 3 Tax…

Christine Lagarde, scourge of tax evaders, pays no tax

IMF boss who caused international outrage when she suggested that Greeks should pay their taxes earns a tax-free salary

IMF Managing Director Christine Lagarde

Christine Lagarde, the IMF boss who caused international outrage after she suggested in an interview with the Guardian on Friday that beleaguered Greeks might do well to pay their taxes, pays no taxes, it has emerged.

As an official of an international institution, her salary of $467,940 (£298,675) a year plus $83,760 additional allowance a year is not subject to any taxes.

The former French finance minister took over as managing director of the IMF last year when she succeeded her disgraced compatriot Dominique Strauss-Kahn, who was forced to resign after he faced charges – later dropped – of sexually attacking a New York hotel maid.

Lagarde, 56, receives a pay and benefits package worth more than American president Barack Obama earns from the United States government, and he pays taxes on it.

The same applies to nearly all United Nations employees – article 34 of the Vienna convention on diplomatic relations of 1961, which has been signed by 187 states, declares: “A diplomatic agent shall be exempt from all dues and taxes, personal or real, national, regional or municipal.”

According to Lagarde’s contract she is also entitled to a pay rise on 1 July every year during her five-year contract.

Base salaries range from $46,000 to $80,521. Senior salaries range between $95,394 and $123,033 but these are topped up with adjustments for the cost of living in different countries. A UN worker based in Geneva, for example, will see their base salary increased by 106%, in Bonn by 50.6%, Paris 62% and Peshawar 38.6%. Even in Juba, the capital of South Sudan, one of the poorest areas of the world, a UN employee’s salary will be increased by 53.2%.

Other benefits include rent subsidies, dependency allowances for spouses and children, education grants for school-age children and travel and shipping expenses, as well as subsidised medical insurance.

For many years critics have complained that IMF, World Bank, and United Nations employees are able to live large at international taxpayers’ expense.

During the 1944 economic conference at Bretton Woods, where the IMF was created, American and British politicians disagreed over salaries for the bureaucrats. British delegates, including the economist John Maynard Keynes, considered the American proposals for salaries to be “monstrous”, but lost the argument.

Officials from the various organisations have long maintained that the high salaries are a way of attracting talent from the private sector. In fact, most senior employees are recruited from government posts. (Guardian)

Waiting to read about the tax-free and full of benefits life-style of our esteem EU leaders, officials, bureaucrats, technocrats and doormen.

PS Some Greek media claim Lagarde was slammed about her Greece comments even by her colleagues at the IMF. And that she would give an interview to a Greek media to make things right.

Lagarde: Do YOU pay taxes (,idiot) ?

Madame Lagarde on her knees asking for forgiveness? THAT I want to see hehe!

 

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22 comments

  1. I asked this somewhere else on your site, but maybe you know the answer. Do Greek MPs pay taxes over their salaries? And over their complementary cars? I really do not know.
    I found this on Greek Reporter or so a couple of months ago:

    Greek politicians receive:
    •MP’s salary: 8594 euros per month
    •Supplementary salaries during Christmas (500 euros), Easter (250 euros) and vacations (250 euros)
    •4 secretaries and 1 consultant
    •3300 euros per year for using 4 telephone lines
    •Free transferring on trains, buses and ships
    •Up to 60 free of cost flights for MP coming from district areas
    •1000 euros allowance per month for housing
    •Interest free loans
    •All Members of Parliament over 65-years-old receive not only pension but also compensation.
    •Members of Parliament can receive a pension after a 4 year tenure.

    Guess this gives Mrs. Lagarde almost a run for her money.

  2. keeptalkinggreece

    I think salaray is down to 5,000 something meanwhile. of course they pay taxes.

  3. Therre are however many “representatives of international organisations” in Greece, for starters 40 permanent inspectors for the Troika in Athens, headed by M. Horst Reichenbach. As far as I know these guys don’t pay any taxes anywhere. And I think that every nation (not just Greece) that has these guys staying (voluntarily or otherwise) should be entitled to tax them pro rata for the time they spend in that country, and at the going rate in that country. When in Rome, do as the Romans…

  4. A lot of their benefits have been slashed for example phone lines, large cars, salaries, etc. I could not find a link on these but the info was oresented on Greek tv.

  5. Once again a “fat cat” tells the “mice” they must pay through the nose for their “cheese”.

    Whilst the “fat cat” lives on “caviar and champagne” for free.

    Sickening and time for change.

    An apology to the Greek people of this slur on the many honest and tax paying people in this nation needs to be given, but doubt it ever will be because they are too powerful and seemingly immune……..:(

  6. Diplomats still pay tax in their home country. They are exempt from tax in the country they serve obviously. I imagine that Lagarde based in NY would not pay American tax.

  7. keeptalkinggreece

    I think I will write a post “I want a tax free life” lol

  8. keeptalkinggreece

    Re-negotiating some MoU key points would be more proper than an verbal apology.

  9. of course they pay taxes

    Why “of course”? They can’t be prosecuted either. Allright, when this is their ‘compensation’ (I think they call it that?) might be nice to know if this before or after tax. And I seem to remember that, because it is a ‘compensation’ this is not added to their total income, but taxed at source. Nice way to don’t fall under high income measures.

  10. I haven’t heard nor read that. Would be nice to have a link or so for that.
    Anyway… “large car” has now become a free ‘smaller car’? “phone lines” are now replaced by free kinito?
    Sorry for going on like this, but as much as I do not like the clichés Mrs. Lagarde was reviving for her own good, and as much as I do not like this tax-regime she is living under, I also am very surprised that so many seem to see the speck that is in the others eye, but suddenly not t mind so much the log that is in their own (in this case Greek MPs) eye?
    Or: change the world start with yourself.

  11. keeptalkinggreece

    it is taxable income no matter what you call it, Antonis

  12. Yes it is. But taxed different from the rest of us, mere mortals.

  13. Christine Lagardes contract specifically states that as a “representative of an international organisation” her earnings from that organisation are NOT SUBJECT TO TAX. And that means anywhere…
    This is where you’ll find the sickening news:http://www.bloomberg.com/video/71921…disclosed.html

    the same preferential treatment is given to UN representatives, World Bank and their cronies, and many. many more.

    Diplomats are not representatives of an “international organisation”. I still believe that these people are just creaming it, and should, possibly unilaterally, be made cough up at the same rate that Joe Soap would have to if he was earning that kind of money in whichever country tis may be. And on a pro rata basis. In Greece for 100 days? Pay 100 days worth of tax on $551,700 Mme Lagarde. That would be fair, just leaving them off scott-free is anything but fair

  14. Who really cares?

    Lagarde is not breaking any laws is she?

    She could have been more diplomatic, and she is foolish for saying what she said and especially the way that she said it, but just because she has no obligation to pay taxes does for her post does it mean that nobody should?

    As usual in Greece, looking for any means to avoid an obligation is path most choisen.

  15. keeptalkinggreece

    it was British and French media that brought up the news, man! Blame the Greeks is the easy way.

  16. “but just because she has no obligation to pay taxes does for her post does it mean that nobody should?”

    The real question here is of course WHY does she have no obligation to pay taxes while everybody does? What makes her so special? Obviously not her high levels of tact, diplomacy or compassion for that matter?
    Who decides that people earning obscene wages like she does do not have to contribute to the cost of running of society like everybody else does? Probably the same people who decide that somebody with an income below the poverty line can and should still be taxed into oblivience.
    It would be nice to hear a coherent, acceptable justification for her status as world-wide non tax payer.

  17. Never mind her taxes.Let’s have a look at what this compassionate mid=Antlanticised Frnch lawyer and wrung=out accountant does for the poor children of Africa(for whom her heart continually bleeds.) Well….the IMF(she runs it,I believe,when she’s not slagging off the Greeksfor competing with her in tax dodging) the IMF DEMANDS THAT AFRICAN PRIMARY SCHOOL CHILDREN PAY FOR A PRIMARY SCHOOL PLACE.That will,of course,be AFTER their parents have paid their taxes. TheIMF also insists that all African countries under its benevolent care must enforce the privatisation of water supplies. IT EVEN PROHIBITS THE POOR 9for whom Madame’s tender heart bleeds) FROM HARVESTING RAINWATER. This compels those African poor to buy their water from the privatised water companies favoured by the IMF….No wonder this ghastly hypocrite wants the Greek people to return to power the parties of Tsocatsopoulos….of the Siemens and o0f the Church/political land scandals No wonder she doesn’t want anyone in power with a clean bill of political health.

  18. keeptalkinggreece

    I ‘ve read it too that children have to pay for primary school place…

  19. That policy was retracted, with the immediate result of the amount of school going children doubling.
    I would however make 2 points here. Just because the bigger picture is even seedier, doesn’t mean that the detail should be overlooked and not acted upon. Mme Lagarde’s tax status might not seem much in light of the bigger picture, but it is most definitely part of it and should be treated with the “never mind” attitude.
    Secondly, IMF policy will ALWAYS involve privitization, obviously with juicy pickings for their buddies, be they companies like Coco Cola controlling drink water supply, or worse… Here is a link worht following:
    http://www.oaklandinstitute.org/sites/oaklandinstitute.org/files/LandGrab_final_web.pdf
    This 29 page document outlines policies supported and facilitated by amongst others the IMF, either through direct financing or negotiating on behalf of.
    It was first highlighted about a year ago on BBC. In the BBC report one of the authors of this report recalled the “purchase” of 600,000 acres of tribal lands for the price of 2 bottles of whiskey, leaving 1000’s without any means of growing thier food or hunting. what is done with the land. The new “owner”, a hedge fund active in Europe as well and holder of some “bonds”, grows flowers for the cut flower business in Europe. that’s where the cheap bouquets of cut flowers you can buy at your local petrol station or friendly neighbourhood supermarket come from. Not exactly nice reading, but a serious eye-opener…
    the Lagardes of this world have a lot more to answer for than offensive, tactless remarks!

  20. I obviously meant that it shouldn’t be treated with the “never mind” attitude…

  21. keeptalkinggreece

    this sounds like “go west” mentality and seize land from locals.

  22. It’s not called the great land grab for nothing. In Somalia alone they displaced over 800,000 people in 1 faul swoop. Only God knows how many in the Sudan and Ethiopia and everywhere else. Not to mention Pakistan. But where do all these illigal immigrants come from….