The United Kingdom’s “Treasure Island” tax mounts could be in jeopardy a century after the United States and its agencies have pledged to abolish high taxes on large, multinational corporations.
The remotest islands of the former British Empire have served as the first world power for everyone from high-income Chinese officials to Russian oligarchs to Western corporations to protect low-income taxes – or to hide them.
But a seven-year tax agreement (G7) in the 20th-century mansion near Buckingham Palace should hit the UK islands hard after decades of trying to make more money to reduce costs.
“Now is the time for change,” said Alex Cobham, chief executive of the Tax Justice Network, a pro-tax advocacy group. “We will remember five or ten years and say: ‘Yes, that’s when it changed.’
“There is a strong change – a commitment to ending the race,” Cobham said, although he acknowledged that this could not be written and that politicians for years had promised to drive them out.
The world loses about $ 427bn a year due to corporate and personal fraud, according to a report by the Tax Justice Network. About $ 245bn of it has been lost to foreign exchange earners and another $ 182bn has been lost to wealthy people who are wasting their resources.
If much of the promise of the G7 is fulfilled, then all the hidden benefits can be re-introduced in a significant way since the fall of the British Empire in the 20th century.
As Britain’s power began to fall, some of its members became independent territories that were not part of the United Kingdom but formed a coalition with the British government and maintained strong ties with London.
Some of the 14 regions of the British Overseas – including Bermuda, the British Isles (BVI), the Cayman Islands, Gibraltar and the Turks and the Caicos Islands – began to have coastal and foreign economic attractions that freedom fighters say have left all local and remote taxpayers unchanged. .
British taxpayers account for 29% of the $ 245bn tax levied on corporations, according to the Tax Justice Network, which lists BVI, Cayman Islands, and Bermuda as the world’s largest corporate taxpayers.
The financial offices of the BVI, Cayman Islands and Bermuda did not immediately respond to a request for comment.
The British Isles, which have been hit hard by the recurrence of corporate recession, are being monitored and could jeopardize the business they have been running for years and could lead to more unemployment, Cobham said.
In fact, two anti-apartheid networks were created: the British cable and the rest of Europe, which includes Ireland, Cyprus, Luxembourg, Malta in the Netherlands and Switzerland.
The G7 tax alliance makes corporate taxation less attractive because it gives countries the right to add higher taxes on corporate income in countries where taxes are lower than in the world.
“Those who have been selling their market – it is the palm market if you will – have saved a lot,” said Richard Murphy, a company accountant and professor of law at Sheffield University Management School.
“It’s a big place for companies like Luxembourg, like Ireland, like the Netherlands that will be found here,” he said.
The worst-affected countries are expected to apply for as much tax as possible. The basic definitions of “profit” and “tax paid” have not yet been defined, Murphy said.
When Murphy saw little in many British taxpayers, he said in the end the most important thing about G7 communications was that it sent a notice to companies: “clean up your actions”.
He added that this would be a special concern as many Western organizations are meeting with stakeholders who are pushing for governments to take better care of the environment, financial institutions and institutions.
“For traders, this sends a very strong message to ‘get out of this place – you could be in trouble’ and the rest of us would be in trouble,” he said.
“Obviously the technology will be hit, but so will financial services in a big way,” Murphy said. “All the banks and the economy want to blow up, just like other pharmaceutical companies.”