Treasury committee to grill tax havens over safeguards

Accountants and regulators from tax havens face having to reassure MPs over their money laundering and tax evasion safeguards.

The Treasury select committee is considering calling witnesses from British Overseas Territories, which include the Cayman Islands (pictured) and Bermuda, as part of its inquiry into offshore tax centres.

MPs are visiting Jersey and the Isle of Man this week to gather information for the investigation, due to produce recommendations for the government by September.

The committee is also set to call professionals from the Foreign and Commonwealth Office and financial services companies with offices in the UK.

The inquiry comes amid concerns that tax havens have become virtually impossible to regulate properly and have destabilised the global economy.

Richard Murphy, an adviser to the Tax Justice Network, said: ‘Why are there so few suspicious activity reports filled in [by overseas offshore centres]? And why are so few investigated or prosecuted? Basically, this means the system is not working.’

An Isle of Man government spokesman said it had submitted information to the Treasury select committee and was cooperating with the review.