TaxPersonal TaxTaxation – Caribbean tax havens refuse to comply

Taxation - Caribbean tax havens refuse to comply

UK dependent territories have rejected pleas by the government to toughen their rules on financial regulation and crackdown on tax evasion, the Foreign Secretary Robin Cook will say this week.

The islands, which include Bermuda, the Caymans and the British Virgin Islands, argued they should determine their own tax regimes and that financial regulation in the territories was sufficient to deter money laundering.

Their response follows a six-month review of constitutional relations with the dependent territories by the Foreign Office.

Cook’s statement, which was due to be delivered yesterday in the Commons, is the result of a full-scale review of relations with the dependent territories because of fears about the potentially destabilising effect of the illegal drugs trade and its effect on the territories’ financial services industries.

In the House of Lords, foreign minister Lord Macin-tosh of Haringey, confirmed the review included the state of financial regulation in the territories. He said: ‘The UK has been active in supporting international agreements to tackle harmful tax competition.’

He was pressed by for-mer Treasury minister Lord Barnett if the objective was the removal of tax haven status which would ‘damage the investment of those islands from non-UK taxpayers’ or concerned with UK taxpayers making use of the shelters.

No peace for island havens, page 10.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

7m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter