Crackdown on tax havens completed

The UK is about to complete the crackdown on offshore tax havens required to avoid being subject to the proposed European Union withholding tax regime.

Link: Rich hide $11.5 trillion in tax havens

The Commons is expected to approve four more regulations tomorrow authorising the exchange of information about the holdings and tax liabilities of EU citizens required under the Savings Directive with the Netherlands Antilles, Aruba, the Virgin Islands and Monsterrat.

Similar orders have already been approved covering Jersey, Guernsey and the Isle of Man, and non-reciprocal arrangements have been agreed with Anguilla, the Cayman Islands and the Turks and Caicos Islands.

Gibraltar – whose compliance caused difficulties – does not require a separate agreement, as it is technically part of the UK.

The directive is due to come into force on July 1.

Implementation has required decisive arm-twisting by Treasury ministers of island administrations concerned at the effect the crackdown will have on their economies.

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