Posts Tagged ‘transparency’

The Thyssen Art of Tax Avoidance . . . and Philanthropic Feudalism

During our research for ‘The Thyssen Art Macabre’, we became witnesses to the art of what is now being called ‘aggressive’ tax avoidance, as a result of our participation in a lengthy masterclass with one of the world’s leading exponents. It was Heini Thyssen himself who admitted to us that his primary mission in life had not been the collecting of art or the maintenance of an industrial fortune, but the avoidance of paying tax. Indeed on page 319 of our book we quoted his astonishingly frank statement word for word: ‘I am a tax evader by profession. If you wanted to be correct, I should be in jail’.

The most intensive part of this masterclass came when Heini chose to take his son Heini Junior (Georg Thyssen) to court, in order to break up a Bermudan trust and regain control of the family fortune. This was not only a structure that had been designed to make such disassembly as difficult as possible and thus protect the fortune from alimony claims, irresponsible siblings and, in Heini’s case, his own extravagance, but it was also meant to minimise its exposure to tax liabilities.

I was astonished that, considering the financial importance of this process to the Thyssen-Bornemiszas, the cost of which, one way or another, they would all be contributing to, not one member of the family displayed any interest in visiting the island, to see if their legal and financial representatives were handling the task with due diligence; a process that would eventually result in a legal bill of some $150,000,000. So I offered to go on their behalf, in the knowledge that the very rich rarely do anything for themselves, even collect art; preferring to have others do things on their behalf.

It was in Bermuda that Caroline and I got to know Heini’s barristers, Queen’s Counsellors Michael Crystal and Robert Ham and their local solicitors, Appleby Spurling & Kempe; experts in tax efficient, financial logistics – and in whose gardens we would complete each day’s activities with refreshing bottles of chilled champagne. Then, more recently, I was reminded once again of their existence when a vast cache of their highly privileged clients’ records were mysteriously leaked to the International Consortium of Investigative Journalists from the offices of what had now been rebranded as simply Appleby. This resulted in a spectacular media exposure which has come to be known as the ‘Paradise Papers’.

Around the same time that this financial pasta was beginning to slide off the edge of the plate, the less financially privileged were starting to realise just how iniquitous the super rich really can be. There is increasingly a perceived imbalance reminiscent of feudal conditions, which seem to be favoured not least by those whose marriage has led them to co-opt scions of defunct aristocratic dynasties. The highly paid advisors, meanwhile, had started putting strategies into place in order to meet the PR-challenges of the forced increase in transparency now being applied to offshore financial instruments and their wealthy users.

With this backdrop, Heini Thyssen’s daughter, ’The Archduchess’ Francesca von Habsburg, whose name featured prominently in the ‘Paradise Papers’, wasted no time in announcing to the world her own seemingly admirable ‘mission statement’. This was to use part of her estimated $350,000,000 personal fortune, – inherited from her father, some of which was provided by the Spanish tax payers, when he sold them half his art collection – to save the world’s oceans from pollution.

She also began referring to herself as an ‘executive producer’ and ‘agent of change’.

Soon her London-based organisation TBA21-Academy was said to be ‘curating a top level conference at the Bonn Art Museum’ (a publicly funded organisation!) at the 23rd session of the Conference of the Parties (COP23) to the United Nations Convention on Climate Change (UNFCCC). But in truth this was but a one-day coming together of some of the privileged recipients of her ‘altruism’.

In order to assist her in such an intellectually complex activity, she had recruited the services of a major Broadway-based public relations organisation called Resnicow and Associates, which specialises in ‘online strategy’, ‘core missions’ and ‘sponsorship“; though considering her exceptional wealth one would not have thought that Francesca Habsburg-Thyssen needed the latter. But I know from my own experience that she has invariably asked others to contribute financially to her various socio-cultural activities over the years. And this has also included those in control of public funds.

Meanwhile, I noticed that she still had her British Virgin Islands-based Fragonard art sub-trust in place, into which her inherited Thyssen-Bornemisza art collection share had been placed in 1993 and which was said to have engendered a presumably Cayman Islands-based trust with the assistance of Appleby Trust Cayman Limited in 2008. Then there is the Alligator Head Foundation Jamaica. She also continues to enjoy the amenities of Thyssen Bornemisza Group (TBG) AG Zurich, TBG Holdings Limited Bermuda, Favorita Investment Limited Malta and other such tax-efficient facilities.

The apple seemed not to have fallen far from the tree and her father’s influence possibly continued to affect Francesca Thyssen’s exposure – or not, as the case may be – to tax in Austria, Switzerland, the Czech Republic, the United Kingdom, Jamaica or anywhere else she may see fit to lay her head.

And it looks as if even a supra-national entity such as the United Nations may be ‘endorsing’ her enterprise in philanthropic feudalism, which would be viewed with a distinct lack of sympathy by polemicists, such as myself and my collaborator. Indeed the latter told me: ‘Aggressively avoiding the payment of tax can hardly be considered helpful to governmental agencies who are responsible for the protection of the environment. Using tax payers’ money to fund one’s own, indulgent self-promotion is even less so’.

But presumably Resnicow is intending to garner sufficient public enthusiasm for Francesca Habsburg’s cultural endeavours in the months ahead to successfully persuade those who care, that should she indeed be aggressively minimising her exposure to the payment of tax, she will nevertheless be perceived as a true philanthropist, acting only in the public’s cultural and environmental interests.

And Resnicow will surely be able to help with disaster management advice, if German academia and the media is ever obliged to accept the truth of our account of where Francesca Thyssen’s fortune comes from. Or if she is held accountable for fulfilling her promise of assisting in locating the graves of one hundred and eighty Jewish slave labourers put to death by the SS ‘guests’ of her Aunt Margit Batthyany-Thyssen in the grounds of the family’s Rechnitz castle in 1945.

Meanwhile, one should perhaps be reminded that the last time there was a Thyssen financial interest on Broadway was during the Second World War, when it was the location of the Thyssen family’s Union Banking Corporation in which they and, so it was rumoured, a number of prominent Nazi party members kept a few million emergency dollars, and Prescott Bush, grandfather of George W Bush, was a director!

 

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The indispensability of “impertinence” or An explanation to a Berlin book blogger concerning Sacha Batthyany and the Thyssen-Bornemiszas (by Caroline D Schmitz)

The aggressiveness of the reaction of many German-speaking commentators following our article in the Feuilleton of Frankfurter Allgemeine Zeitung in 2007, „The Hostess from Hell“ (previously published in Britain in The Independent under the title „The Killer Countess“), has always shocked me deeply. Here was the powerful Thyssen dynasty, who not just kept quiet about their overwhelming participation in the National Socialist regime, but who had their role pro-actively denied through the propagation of misleading reports. And there were we, an English author and a German researcher, who chance had brought together in England in 1995 and who, through a very small number of outstanding personalities, namely Steven Bentinck, Heini Thyssen, Naim Attallah, George Weidenfeld, Frank Schirrmacher and Ernst Gerlach, were put into the lucky position of being able to pierce the narrative of the corporate-academic-media establishment on the subject of Thyssen and save the truth from being entombed.

From the beginning, we were „impertinent“ in the original sense of the word which is „not being part of (the establishment)“, and our research always took place at the original locations. We did not learn of the Rechnitz massacre on the Internet, but in Rechnitz itself and from Rechnitz people. At the time our article was published in FAZ, we knew nothing of Eduard Erne, who had made a documentary film on the event entitled “Totschweigen” (i.e. “Silencing to Death”) as far back as 1994 (and who currently works for Swiss television), or of Paul Gulda, who in 1991 founded the Rechnitz Refugee and Commemoration Initiative (Refugius). When we met them both at the Rechnitz-symposium at the Burgenland County Museum in Eisenstadt (Austria) in 2008, they too treated us in an unfriendly manner, which we thought could only be because they felt we had ignored their work on purpose. This was not the case and moreover, because of us, their work was now much more prominent than before. So why were they attacking us and protecting the Thyssens and the Batthyanys who had obviously rejected or ignored their work in the past?

Now, a decade later, a sizeable statement by a member of the dynasty, Sacha Batthyany, has been published in Germany in the form of the book „What’s that to do with me?“, and is due to be released in Great Britain by Quercus in March 2017 (translator: Anthea Bell) under the title „A Crime in the Family“, (a line remarkably similar to the cover headline „Shame and scandal in the family“ we used on our book „The Thyssen Art Macabre“, and which was a statement originally made to us by Heini Thyssen himself). Great efforts of promotion are being lavished on Mr Batthyany’s book, which is to be distributed as widely as Israel and the USA.

In his press work, Sacha Batthyany tirelessly pretends that it was „chance“ that he came across the negative sides of his family history and in particular the Rechnitz massacre. He says it was all „unknown“ until one day he started investigating things of which he knew absolutely nothing before, which he says is because he grew up in the „padded“ country of Switzerland, where one knows nothing, for instance, about the Second World War… This from a journalist, whose family was financially supported by the Thyssens’ wartime profiteering organised from Switzerland, who is a member of one of the most influential European (originally Austro-Hungarian) dynasties, has studied in Madrid, has worked for various big international newspapers (e.g. Neue Zürcher Zeitung) and spent a big part of his youth not in Zurich, but in Salzburg (although he admits the latter very exclusively only when he happens to be speaking in the major Austrian towns of Salzburg or Vienna – his press work does not seem to have led him to the Burgenland provinces of Eisenstadt or Rechnitz so far, whose mayor Engelbert Kenyeri, poignantly, does not seem to be too impressed by Batthyany’s book).

Even FAZ (Sandra Kegel), which during its original coverage of our story had to fend off huge ill will from Neue Zürcher Zeitung and others and without whom the German-speaking version of our book would not be available, now withheld mention of our impulse and, as so many others showered by the promotion of the Kiepenheuer & Witsch publishing house, praised Batthyany’s work as a heroic act of self-motivated honesty. And this despite the fact that his book would not exist if FAZ, ten years ago, had not had the courage to allow our „impertinence“, thereby exposing itself to the risk of serious reputational attack at the hands of their rivals in the media.

At the end of May, the Berlin book blogger „Devona“ (www.buchimpressionen.de), having reviewed 75 works of fiction, decided to review a non-fiction audio book for the first time in her life and chose „What’s that to do with me?“ to do so. In her review, she made statements about the role of Margit Batthyany nee Thyssen-Bornemisza in the Rechnitz massacre, which, according to the rudimentary state of her knowledge about the case, were not hers to make. For instance, she described the fact that Margit covered up for two main perpetrators of the crime after the war as mere „conjecture“. So we wrote a comment to her, pointing out the inaccuracy and coarse fatality of her statement. Even the statement concerning the Rechnitz massacre on the official website of the Batthyany family, which is still far from extensive enough, has been admitting for a few years now that this cover-up did happen. So why should an anonymous person, who is obviously not part of the family, disseminate contradictory information?

Devona reacted at great speed and very angrily to the content of our critical analysis. Then she revised her reaction. Now, it was no longer so much the content of our criticism that angered her, as our manner of expressing it, which she alleged to be „impertinent“. And then the author of „Buchimpressionen“ did something truly astonishing. She first took off the name of the German version of our Thyssen book („Die Thyssen-Dynastie. Die Wahrheit hinter dem Mythos“) from her platform, which had been part of our statement. She then accused us of not having provided the German public with a German-speaking version of our work. When she subsequently found out that a German version of our book has existed since 2008, she refused to recognise this fact, because, as she said, „to this day Wikipedia does not refer to a German version“.

The blogger now added that she would „not research to the ends of the Internet after every commentator“. But in truth she had not researched anywhere near the ends of the Internet, she had come to rest at its very first stop. Our book on the Thyssens exists in German, but for Devona it did not exist in German, because on Wikipedia it did not say that it exists in German. This was so indicative of German-speakers’ refusal to engage with the factual content of our book. Was this information handler just too lazy or did she not want to know about the correction? Devona’s statements, in their unfiltered emotionality, were highly revelatory. She had now also stopped addressing me and directed herself exclusively to „Mr Litchfield“, as if the book were the product of an Englishman only and not an English-German co-production.

Wikipedia as a reference point is problematic to us, particularly because FAZ in 2007, during the translation of our article from English to German, carried out several changes to our text, after, amongst other things, conversations with the presumptious head of the ThyssenKrupp archives, Professor Manfred Rasch, and after checking various Wikipedia-pages. The most important one of these changes is this: Heinrich Thyssen-Bornemisza did not settle permanently in Switzerland in 1932, i.e. one year before Adolf Hitler came to power, but only in 1938, as we found out during our research. The Independent article said 1938, but the FAZ article says 1932. People with adequate historical knowledge know what that means and the roles of Heinrich Thyssen-Bornemisza and of Switzerland during the Second World War have been explained at length in our book. To the less experienced we say simply this: it is a swap that might appear tiny, and which yet has a meaning that is both fundamental and monumental.

Devona thought of our comments to her as being „impertinent“, although they were merely strict. And she refused emphatically to look into the matter in a way that was befitting its gravity. The „impertinence“ of the matter, however, does not lie with us. The outrageousness and the aberration lies with the crimes that were committed in the name of the German people during the Second World War. The impertinence lies with the fact that the Thyssens (who had married into and financed parts of the Batthyany family) gave aid to the anti-democratic, grievously inhumane Nazi-regime, that they set the parameters in which the monstrous crimes against above all the Jews, but also against other people, including the crimes against the German people and their honour, could be carried out. It is impertinent that they have remained silent about it for 70 years, have denied their role and glorified their deeds. It is impertinent that they, in short, have misled the general public and that in large parts they continue to do so. It is only because of their behaviour that this book blogger at this time was still able to express her assumption of Margit Batthyany-Thyssen’s guiltlessness.

The families in question enjoy a comfortable supremacy in society, within the public discourse and in the „regard“ of people, based on their membership of both the world of the financially privileged and of the aristocracy. (NB: the latter is strictly long since defunct both in Germany and in Austria and can be accepted in a democracy only if it does behave in an impeccably democratic manner). Furthermore their status is due to the fact that ThyssenKrupp is still one of the major German employers and that the coal and steel industries, which the Thyssens were unfortunately allowed to continue to control after 1945, helped prevent a total collapse of the country following the Second World War (as Herbert Grönemeyer sings in his song „Bochum“: „your pit gold lifted us up again“).

In arch-conservative Austria, the Batthyanys (who Sacha Batthyany obviously considers himself part of and vice-a-versa, as he lets himself be and is pictured in their midst on their homepage – last row, second from right in the big group picture of the younger generation) continue to have a special status which derives from their long feudal history (the current head of the clan, Count Ladislaus Pascal Batthyany-Strattmann, is a Gentleman of the Papal Household!…).

In view of this, the general public continues „pertinently“ to content itself with its submissive role of being recipients of Thyssen and Batthyany misinformation. One member of the dynasty, Sacha Batthyany, has now written a book, which purports to be an honest examination of the past. But not everyone remains convinced (see in particular Thomas Hummitzsch in “Der Freitag”, but also Michael André on Getidan, and even Luzia Braun, Blue Sofa, Leipzig Book Fair).

Most of the commentators of the Rechnitz massacre say they agree that the graves of the victims have to be found. But while local people have claimed they know where the graves are and the original Russian investigations certainly located them, not everyone amongst the more powerful members of the community, both past and present, seem to be equally willing to contribute to such transparency.

While it appears to be utopic to hope that this might change, times have moved on rapidly since 2007, when our book first appeared. Thyssenkrupp is now an ailing colossus, whose name quite possibly might not exist in its present form in the foreseeable future, following a sale or take-over of all or parts. And German legislation concerning the prosecution of Nazi crimes no longer assumes automatic guiltlessness if a direct participation in acts of killing cannot be proven. A presence and role in the overall crime suffices, and an administrative office some distance away from a gas chamber is close enough for its essential contribution to the effectiveness of the killing machine to be proven. The same goes in the case of Rechnitz for the castle (which was requisitioned by the SS but continued to be financed by the Thyssens) and the Rechnitz murder pit of the night of 24/25 March 1945.

Today it is still mainly the small fish that get dragged before the courts, people such as John Demjanjuk, Oskar Gröning and Reinhold Hanning. But the clock of historical honesty is ticking relentlessly for the big fish too, who still are not working through their past voluntarily and comprehensively. Those Thyssens and Batthyanys, who played unsavoury roles during the Second World War, are dead. It is the democratic duty of their descendants finally to cut through the web of misinformation and stick by not only the positive sides of their history but the negative sides too. Only through their confession can the general public learn the last serious lessons from this history. Only then can permanent healing and reconciliation happen.

But the Thyssen-Bornemiszas and Batthyanys, it seems, do not wish this to happen, possibly because a free, enlightened, democratic public can be better controlled through unsettling, divisive manipulation. The history of the Holocaust could be comprehensively settled by now, if these families had not shirked their responsibilities. The German people could finally be released from a continuation of the drip-drip-drip of Aufarbeitung which is so bone-grinding and thereby effectively counter-productive, if these families did now come clean and accepted the fact that our book is an accurate, independent, historical record.

Deep in the souls of the German and Austrian people, the names Thyssen and Batthyany are inextricably linked to the feelings of honour and pride. However, these families (the Thyssen-Bornemiszas through their head Georg Thyssen, board member of the Fritz Thyssen Foundation and backer of the series „Family – Enterprises – Public. Thyssen in the 20th Century“ (which so far does not mention the Rechnitz massacre at all) and the Batthyanys through their head Count Ladislaus Batthyany-Strattmann, backer of the tomes „The Batthyany Family. An Austro-Hungarian Dynasty of Magnates from the End of the Middle Ages until Today“, which rejects outright any involvement of Margit Batthyany-Thyssen in the Rechnitz massacre!) fail to act honourably by avoiding independent scrutiny and controlling their cooperation in authorised historical publications.

Their shielding leads to a situation where even Germans and Austrians who are anti-Nazi, or purport to be so, cannot recognise the full extent of the Holocaust and thus unwittingly help cover up the true nature of some Nazi crimes, such as the Rechnitz massacre, a process that can all too easily appear to be that of a silent approval.

In the case of Germans and Austrians this is of course particularly devastating. But this kind of dodging is also especially contraindicated for citizens of supposedly „neutral“ countries such as Switzerland, and particularly for Sacha Batthyany. The number of statements he makes in his book and in his press work that are offensive, such as „Marga and Mirta had the Holocaust that they could hold on to. What did I have?“, is also inacceptable.

As long as Sacha Batthyany will continue to claim sympathy rather than guilt for the questionable honesty of his revelations, we will be persistent in this matter. And that is not an „impertinence“. It is our holy duty.

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Is there really a new Thyssen humility on the horizon?

Nearly a decade has passed since the publication of our controversial, 500-page book on Thyssen („The Thyssen Art Macabre“), following which a large official response was set in motion, the logic for which is sometimes difficult to understand, except perhaps to reaffirm the academic credibility of the Fritz Thyssen Foundation and assuage the Thyssen family’s guilt.

Two years ago, the Fritz Thyssen Foundation, with the consent of its board member Georg Thyssen-Bornemisza and the support of the ThyssenKrupp company archives, finally started releasing a series of ten books (anything around 5000 pages in total!) entitled „Family – Enterprises – Public. Thyssen in the 20th Century“. So far, three books have appeared (two of which were doctoral thesis) and were reviewed by us: Donges on the United Steelworks, Urban on Forced Labour and Gramlich on Art.

Then, in November 2015, somewhat at odds with the chronology, volume five, „Thyssen in the Adenauer Period. Concern Formation and Family Capitalism“ by Professor Johannes Bähr was issued. The author’s status, track record and purported commitment to transparency in company-commissioned research gave rise to hopes for a genuine, critical analysis of the regaining of power, after World War Two, in Germany, of a family who had been major war profiteers and Hitler supporters.

Unfortunately, the book’s almost Disney-style, yet haughty superficiality once again displayed all too obviously the hallmarks of a Thyssen-authorised work. We will thus be postponing our review until the end of the series, not least because another tome, out sometime around 2017 (?), is set to deal with the „confiscation“ of Fritz Thyssen’s assets during, and their restitution after World War Two, a topic without which volume 5 cannot really be fully appreciated, assuming that anybody out there will have the stamina to actually get that far.

The remaining books of the series to be published are on the one hand: Simone Derix, „The Thyssens. Family and Fortune“ and Felix de Taillez, „Fritz and Heinrich Thyssen. Two Bourgeois Lives for the Public“ (both due out in June 2016), whereby the latter title represents an unbelievable turn-around for an organisation which in the past has denied any serious representation of Heinrich Thyssen-Bornemisza, the darkest character of the family, who had the closest bonds – not least through banking – with the evil Nazi regime.

And finally, four books, whose publication dates remain so far undisclosed: Jan Schleusener on the „confiscation“ and restitution of Fritz Thyssen’s fortune; Harald Wixforth on the Thyssen-Bornemisza Group 1919-1932; Boris Gehlen on the Thyssen-Bornemisza Group 1932-1947; and Hans Günter Hockerts on the history of the Fritz Thyssen Foundation.

Almost in parallel, ThyssenKrupp (or thyssenkrupp as it is now known, with its new, filigree logo) has seen a major image change campaign taking hold under Heinrich Hiesinger who, since taking over as chief executive in 2011, has been fighting on several fronts against huge deficits from past mismanagement and corruption scandals, as well as the rapid decline of the European steel-making sector.

Hiesinger’s programme of streamlining and transparency has been described by Martin Wocher in Handelsblatt as „the end of the era of the self-aggrandising Ruhr barons“ (of which, of course, there have not really been any left for quite some time) and by Bernd Ziesemer in Capital as a „change in culture and mentality“ that is allowing thyssenkrupp to distance itself from the „tradition of corruption“ within the steel industry.

But how believable and successful can this fight for the polishing of thyssenkrupp’s tarnished image really be against a background of persistent opacity in the company’s historiography?

As if to illustrate the contradictions involved in the situation, Francesca Habsburg, nee Thyssen-Bornemisza, grand-daughter of Heinrich, this month on German TV’s „ZDF Hallo Deutschland Mondän: Wien“ feature, having let herself be described as a „super-rich Thyssen heiress“, who „has no need to mince her words“, used the programme to attack the Austrian state as „hypocritical“ for using the Habsburg name to help tourism while refusing to fund her art exhibition activities with tax payers’ money. She then denigrated her husband’s name by stating (in English rather than German throughout!):

„The name Habsburg did not dazzle me. I was not overwhelmed by it. I was overwhelmed by my father-in-law, and how he kept the family together. I think the family has come to understand that I have accepted the history of the family and that it has a comfortable [clearly meaning financially comfortable] future through me“. (all quotes approximate from memory).

Of course, it is not the Habsburg family history that is difficult to accept. It is the history of her own, the Thyssen family and their industrial and banking endeavours from which her fortune came, that Francesca Thyssen should, in fact, start being sufficiently humble to concern herself with.

Thyssen without steel. A symbol of their fast disappearing corporate identity.

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