Tax Havens are under threat

The UK government is putting pressure on its overseas territories. The British Prime Minister has requested to disclose information about the beneficial owners of each company registered in tax haven jurisdictions. In particular, the request was sent to Bermuda, The British Virgin Islands, Jersey, Guernsey, The Isle of Man, Turks and Caicos, Gibraltar and Anguilla.

At the same time, the US and the EU are demanding on increasing of tax fairness as governments are struggling with high debts, low growth and tough measures that are hitting ordinary taxpayers.

It is clear that there is a big change in attitude towards tax heavens but it could take years to implement any changes in national tax laws. Also, obviously it is impossible to curb tax fraud and evasion in an individual county but the international coordination of tax policies would be required.

Meanwhile, we can see that the transfer of businesses from tax heavens to low tax jurisdictions like Singapore or Hong Kong has already begun to avoid difficulties with tax authorities in the future.