IMF chief Christine Lagarde pays NO TAX on her £300,000 salary (despite attacking Greece for dodging payment)

Daily Mail, 29 May 2012

• Questioned about Greek crisis head of IMF said country can help itself collectively 'by paying all their tax'
• Suggests that IMF's money would be better spent on African children than on people in Athens
• Lagarde takes home £298,675-a-year untaxed
• Receives further tax-free allowance package of £52,000

  

Laughing all the way to the bank:
 IMF managing director Christine Lagarde
 criticised beleagured Greeks for not
 paying taxes, while she earns a tax-free
salary herself

The head of the International Monetary Fund who controversially proposed that struggling Greeks should pay taxes contributes nothing herself to the public purse.

Christine Lagarde openly criticised citizens of the ailing EU country in an interview last week, but it has now emerged that the former French lawyer takes home every penny of her own £298,675 a year salary.

In addition the IMF managing director also receives a tax-free allowance package of £52,000 a year.

Ms Lagarde told the Guardian that she believes children in Niger with little schooling deserve the fund's money more than people in Athens.

She continued: 'Do you know what? As far as Athens is concerned, I also think about all those people who are trying to escape tax all the time.

'All these people in Greece who are trying to escape tax.'

She added: 'I think they should also help themselves collectively. By all paying their tax.'

Lagarde also criticised Greek citizens 'who are trying to escape tax,' and said the country needs to club together to make more of an effort to solve its economic problems.

Her comments came as the IMF increases the pressure on the Eurozone nation and makes it clear it will not be softening the terms of the nation's austerity package that is deeply unpopular with the country's electorate.

More...

• The Greeksshould not expect sympathy, says IMF boss Christine Lagarde who is 'moreworried' about schooling in Africa
• The truthis unpalatable, but Christine Lagarde is right to tell Greeks to pay theirtaxes

The former French finance minister took over from disgraced countryman Dominique Strauss-Kahn in June last year with strong support including the British, U.S., Chinese and German governments and is now a year into her five-year term.

At the time the former French president Nicolas Sarkozy described her appointment as 'a victory for France.'

Others were less impressed however, with Oxfam labeling the decision 'farcical' because of what it judged to be a lack of transparency in the appointment process.

Imposing: The headquarters of the IMF in Washington is where representatives
 of 184 countries aim to work together to foster global monetary cooperation
and secure financial stability

Mr Strauss-Kahn had been forced to step down under a media storm after he was charged with sexually assaulting a New York hotel maid - the charges were later dropped.

Lagarde, 56, who began her career at Chicago-based law firm Baker & McKenzie, earns more than US President Barack Obama and British Prime Minister David Cameron who both pay taxes.

Mr Obama earns around £255,000 a year while Mr Cameron receives a salary of £142,000 for running the country.

Lagarde's salary could also go up in a few weeks as her contract entitles her to a pay rise on July 1 every year.

Lagarde does not pay tax in line with other international organisations such as the United Nations where workers are entitled to a similar tax break.

It comes under article 34 of the Vienna convention on diplomatic relations which declares that diplomatic agents are 'exempt from all dues and taxes, personal or real, national, regional or municipal.'

Contributors: Christine Lagarde earns more than both Barack Obama, left,
and David Cameron, right

Annual pay for UN workers start at between £29,000 to £51,000 with senior salaries range between £61,000 and £80,000 although this figure varies depending on where an employee is based.

A UN worker based in Geneva could expect to see their base salary increased by 106 per cent while even in Juba, the relatively poor capital of South Sudan, a UN worker could anticipate a 53.2 per cent top up of their salary.

Additional perks include rent subsidies and travel expenses, as well as subsidised medical insurance.

Frustration at the luxury, tax-free lifestyles of international public service workers is not a new issue, the argument dates back to the moment the IMF was created at the Bretton Woods economic conference in 1944.

British representatives felt salaries put forward by U.S. delegates were huge, but they were overruled.

The counter argument suggested by those who work for the organisation is that the whopping salaries are required to attract the best people from the well paid private sector.

However, studies have found that in fact most senior employees are already working in government positions.

Related Article:

Christine Lagarde, scourge of tax evaders, pays no tax