#27 The Legal Profession This Week: Mischon vs the U.K. and Baker McKenzie's Role in the Pandora Papers​

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By Dheepa​


Mishcon vs the U.K.

Mishcon de Reya is launching a legal claim against the UK government on behalf of a group of 35 Afghan refugees. The refugees in question are all judges who have previously handed down countless judgements against Al-Qaeda and Taliban operatives in the region. After having their visa applications to the UK rejected, the judges are now at the mercy of the newly established Taliban government in Afghanistan.

In the US, the government is struggling to deal with a backlog of special immigrant visa applications. These visas were designed specifically for Afghan nationals who aided the US government as translators, interpreters or informants. Contrast this with the UK government’s response. Despite the establishment of the Afghan resettlement scheme, one source at the firm commented that the government has been “incredibly unhelpful so far”. Law.com reports that the UK Foreign Office email account responded to emails from a Mishcon lawyer with an automated response that “This mailbox is now closed” and that “no emails would be read or responded to”. While several other law firms have begun pro bono efforts by drafting reports for the International Refugee Assistance Program, this is the first reported legal action on behalf of refugee groups.

Baker McKenzie and the Pandora Papers

Last Sunday, The International Consortium of Investigative Journalists, a non-profit newsroom, released over 150 files detailing how a large number of politicians and global leaders have used offshore tax havens to avoid taxes. The report implicates Baker McKenzie as playing a role in creating the modern offshore tax avoidance system through lobbying for specific finance and tax laws around the world (Law.com).

Most notably, the report alleges that the firm advised on creating a network of companies across Malaysia and Hong Kong to help international fugitive Jho Low (embezzling $4.5 billion from the 1MDB economic development) hide his wealth. Late last year, Goldman Sachs was forced to pay the Malaysian government over $3bn for its involvement in the embezzlement.

In a statement released on Sunday, the firm acknowledged its lobbying activities stating that “like other law firms and relevant industry or subject matter experts, Baker McKenzie is regularly requested to assist governments and regulatory bodies”. The line between tax avoidance and evasion is difficult to discern in practice. Many law firms regularly help multinational corporations avoid taxes through offshore companies and the use of more favourable laws in tax havens like the Cayman Islands, Luxembourg and more. The question here is, do law firms realise they are partaking in tax and financial scandals in the making when providing this advice?

‘Business as usual’ – the notable deals and cases which went ahead this week:

Linklaters and Travers Smith successfully defended Caffè Nero against a claim from one of its landlords. The landlord, represented by CMS Cameron McKenna and backed by the Issa Brothers (last year’s successful purchasers of Asda), attempted to challenge Caffè Nero’s company voluntary arrangement (CVA), an insolvency procedure triggered by the business’ COVID-19 woes. The judge upheld the CVA stating that it was not in the best interests of the remaining creditors to postpone the CVA despite the Issa Brothers' bid for the coffee chain.