The Guardian reported last night that:
Eight British overseas territories and crown dependencies, including Jersey, the British Virgin Islands and Cayman Islands, could face EU economic sanctions after Brussels identified them as having low or no corporation tax.
Experts have published a scorecard showing red flag warnings set against a list of the 81 countries that may attract companies or individuals seeking to avoid or evade European taxes.
They then added:
Of the 10 jurisdictions flagged on the scorecard for their low tax rate, eight are British overseas territories or crown dependencies: Anguilla, Bermuda, the British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey and the Turks and Caicos Islands.
And:
The UK's ability to influence discussions about which jurisdictions make it on to the final tax haven list will be limited following the Brexit vote. Britain has previously fought hard to protect the interests of crown dependencies and overseas territories in Brussels.
I have to say that this is welcome. I am not saying the EU proposal is without its own contradictions (it is absurd that no member state is considered a tax haven when some very obviously are) but let's leave that aside for now. The attack on tax havens is still too half hearted to not applaud a move from the EU, which is the organisation that has, in my opinion, done the most to crack down on them over time.
We will, of course, need to know how these lists will work: they have not had a great reputation in the past which means that to back them up the EU has to suggest enforcement by tax withholding if anything is really going to bite. But if that is done then this will be a very big step.
Even if the exercise was toothless though it still says that the UK is the epicentre of much of the tax haven world. And that is undoubtedly true, which means that at least this listing is heading in the right direction. Let's hope it continues to move that way.
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I bet out former Chancellor regrets his pro-Brexit campaigning now.
Now wouldn’t that be a turn up for the books if BREXIT did indeed mean that the rich liars behind the Leave campaign ended up being subject to some sort of tax!
Mind you, I bet they will react in time to shift the money somewhere else.
The boltholes are reducing in number
We’ll get them eventually
We’ll get them?
They’ll get them, for certain values of ‘they’.
The German tax authorities will, where our overseas dependencies facilitate evading German taxes.
I’m not so sure about our own authorities: I don’t think ‘we’ have the will; nor the Irish, and the only possible motivation of the French authorities in cracking down on Britain’s ‘Treasure Islands’ would be to shift these lucrative services to the bits of the Caribbean that are still notionally governed from Paris.
That being said, all progress is welcome. Pariah status for these secrecy jurisdictions – and real sanctions – will eventually happen.
I think we will get there in the end
Some of those BOTs have higher Corporation Tax than Ireland. Will you be advocating sending the gunboats in to Dublin Bay?
I think I made my point on that very clear