BVI, Caymans, Bermuda Tops in Tax Haven Abuse

Image: BVI Goverment Information Service. Yachts may only moor at officially approved sites in the BVI, where their quarantine status will be monitored. Failure to comply will attract fines of up to $1000 per person.
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The British Virgin Islands has topped the list of countries known for enabling the abuse of corporate tax.

The Corporate Tax Index is a ranking of jurisdictions most complicit in helping multinational corporations underpay corporate income tax.

According to the Tax Justice Network: “The Corporate Tax Haven Index thoroughly evaluates each jurisdiction’s tax and financial systems to create a clear picture of the world’s greatest enablers of global corporate tax abuse and highlight the laws and policies that policymakers can amend to reduce their jurisdictions enabling corporate tax abuse.”

Also making it on this years list were the Cayman Islands and Bermuda who ranked second and third respectively.

In the last two years, the BVI recorded a 15 per cent increase in the volume of financial activity from multinational corporations, TJN said this greatly contributed to them topping the tax abuse enablers list as it drastically increased the role the country played in facilitating profit sharing.

In it’s latest report, the Tax Justice Network openly criticised the Organisation for Economic Cooperation and Development saying though global tax laws were set by its members, the OECD and their dependencies are counted among the biggest enablers of global tax abuse.

The United Kingdom is a founding member of the OECD.

Ten British Overseas and two Commonwealth territories were included in the list of 70 tax abuse enablers.

According to the Tax Justice Network’s Corporate Tax Index, the world’s top ten biggest enablers of corporate tax abuse are:

  1. British Virgin Islands (British Overseas Territory)
  2. Cayman Islands (British Overseas Territory)
  3. Bermuda (British Overseas Territory)
  4. Netherlands
  5. Switzerland
  6. Luxembourg
  7. Hong Kong
  8. Jersey (British Crown Dependency)
  9. Singapore
  10. United Arab Emirates

Other Caribbean countries included on the list are The Bahamas, which ranked number 12; Curacao-29, Turks and Caicos Islands-36, Anguilla-39, Aruba-56 and Montserrat rounded off the list ranked at number 70.

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