Offshore Havens To Disclose Hidden Beneficial Owners

Offshore Havens To Disclose Hidden Beneficial Owners - UK Treaties Signed More To Follow

Following the "shock revelations" that the rich and famous as well as large international companies set up anonymous ownership offshore companies and trusts potential behind money offshore to avoid taxes (we don't know who this was a shock to?), the British government has confirmed it has now signed multiple agreements with various British dependencies such as the Isle of Man, Jersey and Guernsey to provide a register of beneficial ownership interests in trusts and companies set up within their jurisdiction.

The Isle of Man has even claimed that it would be able to provide beneficial ownership details within one hour!

The British government has moved quickly to counter much of the criticism that it has received both personally and internationally and there is even a suggestion that the British government will look to implement a similar disclosure 20 with all 14 British dependent territories including the British Virgin Islands.

This means that governments around the world will be able via the British government to request hidden beneficial ownership details for offshore investment vehicles where beneficial ownership is for held by both their nationals and businesses..

Comment

We suggest this is all "smoke and mirrors" given that procedures for tax avoidance via offshore vehicles has been around for years. We have even seen written that some dependent territories already have registers of beneficial owners and as such this information has been available for a long time. This is a PR exercise and whilst we do believe these actions will enable greater tax transparency, it is something will inevitably damage the trade of tax haven and low tax jurisdictions but it will mean the reduction of tax evasion and tax fraud globally.