Posts tagged ‘tax’

August 15, 2010

Constrictions on the rising International Class: the case of Kinnock

By Tal-Anna Szlenski

As reported by the Daily Telegraph, Stephen Kinnock, the son of a certain Neil Kinnock, is facing scrutiny regarding his taxes in Denmark.

Why is this interesting? Well, not only is Kinnock the son of a former Labour leader, he is also the husband of Danish opposition and Social Democrat leader, Helle Thorning-Schmidt. Kinnock’s international career path sees him splitting his time between his work abroad and the family home in Copenhagen whilst owning property in London.

It is this un-orthodox, yet rising, way of navigating between multiple national bases that has placed the couple in a bit of a political tangle – some fearing it could cost his wife her prominent position as Danish prime minister in waiting.

It is alleged that the couple has declared varying information regarding Kinnock’s stays in Denmark for tax evasion purposes. The couple itself claims a genuine mistake was made and that their finances are otherwise handled appropriately and by the book. As for now, the Kinnock case has opened a can of worms as to where exactly he should be paying taxes, and not just how much.

Whilst the mainstream media is preoccupied with the aspect of power-greed by the political elite, another important issue  has foregone scrutiny: current failures to accommodate growing internationalism into existing state structures.

Now, I am not going to excuse Kinnock’s current tax mess. That is up to him, his lawyers and accountants to sort out. However the lack of clear-cut legislation on taxation matters (and more), applicable on a global scale, is peculiar. In a time when national economies and defense policies are increasingly intertwined, when corporations are no longer just international but transnational, and when an emerging and growing group of people lead a cosmopolitan existence in accordance to such developments, one would assume a supportive legislative framework to be available in order to drive this process further and more efficiently.  Unfortunately, it isn’t so.

As this case has managed to highlight, it seems rhetoric and discourse has overtaken reality when it comes to the actual extent of the globalization which is so often heralded on the international scene.