This from the full Pre Budget Report:
Many crown dependencies and overseas territories are significant financial centres in their own right and the financial sector plays a vital role in their economies. The Government recognises the progress made by most offshore financial centres to improve financial regulation and transparency, and tackle financial crime. However, crown dependencies and overseas territories, like all offshore financial centres, face challenges and opportunities as the world is changing. In particular, severe financial turbulence has raised questions for all jurisdictions, while there is growing international pressure to line up standards of financial regulation and meet international norms with regards to taxation.
The Government will shortly commission an independent review of British offshore financial centres; their role in the global economy; and their long-term business strategies. The review will not consider changes to the UK's constitutional relationship. It will work with the crown dependencies and overseas territories to identify current and future opportunities, risks and mitigation strategies, including issues such as:
- financial supervision and transparency;
- fiscal arrangements;
- financial crisis management and resolution arrangements; and
- international cooperation.
In the light of comments Alastair Darling made about the Isle of Man a week or so ago I do not think there is anyone who can doubt his intentions: the mood of Barack Obama has reached Whitehall.
This is not a token: this is an indicator that real change is on its way.
As he made clear: it is now very obvious that these places seek to undermine tax revenue but cannot provide investor protection: they demand services and do not pay for them. The world can no longer afford them. The question now is not how reform happens, it is a matter of when it happens. It is not a question of whether they comply with regulations, it is a question of whether the regulations we have are appropriate. And it is not a question of whether their tax strategy is appropriate or not, it is a question of how they are required to comply with international norms which they currently seek to undermine at cost to us all.
Exciting times. He got this bit right.
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Isn’t a review the classic Government cop out when it wishes to defuse a politically awkward issue? I suspect that New Labour will sweep the whole thing under the carpet. Then again maybe pressure from Obama and the desperate need to find revenue to pay down the debt will stiffen their spine.
A campaign against tax havens and details of how the super rich are cheating the rest of us would be a fine issue to raise come the election. It could prove deeply embarassing for the Tories.
Could not agree more with Robert.
The Domicile “review” lasted 5 years.
Wake me up when the report is published.
Whoever wins the next election is going to find themselves in a fairly desperate position financially. Bills will have to be paid – interest on the huge loans, the ongoing PFI fiasco. Whoever wins may have no choice but to open up the tax havens to get cash. This country is one of the few, which have never ever gone bankrupt (OK it’s been a close call at times) but no party will be able to afford to lose that status.
Thanks.
Perhaps I might ask that you would be so kind as to post the chapter / page number that the quote from the PBR appears at.
Bill
3.55
Page 59
Richard
Destroy the tax havens and London’s status as a financial centre will disappear pretty rapidly, if the funds/ trusts etc are forced to move from Jersey/ Isle of Man, then the funds will move to Bermuda/ Caymans/ Dubai and the managers will move out of the UK..
Still if you’re going to shoot yourself in the foot by lowering VAT rather than increasing the personal allowance, then shoot yourself in the chest by borrowing more at a time of record debt, why not finish the job and blow out your brains by clamping down on the offshore jurisdictions that support the one industry that’s left (finance)
Last one out, turn off the mains
I am sorry, but the temptation was just too much.
In paragarph 3.55 above our friends at the Treasury tell us:
”The Government recognises the progress made by most offshore financial centres to improve financial regulation and transparency, and tackle financial crime.”
I have made a request under the Freedom of Information Act asking for copies of any information that supports the assertion.
I suspect that I may be in for a long wait.
[…] note that Isle of Man Treasury Minister Allan Bell has said of the up-coming review of the Crown Dependencies […]
Adrian
If we can only live off immoral earnings then I’d much rather have a lower standard of living
In practice that’s very unlikely. I might remind you, after all the bluster the non-doms have not left
You can only play that card once: it’s been played and did not work
Richard
Adrian – In case you hadn’t noticed the finance industry has just collapsed thanks to its own greed, arrogance and stupidity. That’s why it’s had to be bailed out with billions of taxpayers money on both sides of the Atlantic. The City in its present form is a liability to Britain, not an asset.
If the banks still refuse to lend to small business and the productive economy there will be no alternative but to nationalise the lot, sack the corrupt and incompetent management and order them to lend. The “free market” is dead and the future is a form of state capitalism.
The conservative fixation with holding down public debt and attempting to force poor and middle income debtors to shoulder the burden rather than the Wall Street/City elite is what caused the last Great Depression.
Wake up and smell the coffee, my good Tory. Keynes is still alive and Barack Obama is the 44th President of the United States.
Bill- post 7
http://www.oecd.org/document/19/0,3343,en_2649_33745_1903251_1_1_1_1,00.html
Straight from the horses mouth, who needs FOI when a simple search will find the results?
or is ignorance bliss?
Creg
They’re hardly worth the paper they are written on
See http://www.taxresearch.org.uk/Blog/2008/11/01/tieas-before-bed-time/
Richard
Richard
‘If we can only live off immoral earnings then I’d much rather have a lower standard of living’
So you’d see people lose their houses, become ill and potentially starve and die just to try and stop a wealthy minority avoid tax?
Stalin would have thought twice before writing something that stupid…
As for financial crime that you mention- I do believe the IMF found that there was more money laundering through London as a % of transactions than any of the dependancies.
The dependancies are no more than ‘feeders’ for the city- Jersey, Guernsey, Isle of Man etc are no more than administrative centres with lower tax regimes- they stimulate onshore business, not take anything away from it.
As for the city, Robert, without it GB is a 3rd world country! (maybe we should all live in communes and become farmers?)
I’m not a Tory, Keynes is dead and Obama will be no different to Bush.
Creg hit it on the head- ignorance is bliss.
This should be called ‘Socialist workers with an IQ under 10.org.uk’
[…] Darling has announced his independent review of British offshore financial […]
[…] Darling has announced his independent review of British offshore financial […]
[…] gather that the recently announced review of UK tax havens is to be run by Michael Foot, a former Bank of England and FSA […]
[…] gather that the recently announced review of UK tax havens is to be run by Michael Foot, a former Bank of England and FSA […]