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UN: Foreign Investment in Caribbean Tax Haven Dwarfs India and Brazil

January 30th, 2014 | Tags: Tax Haven Brazil India foreign investment
Zero corporation or income tax is levied in the British Virgin Islands, which saw $92bn of foreign investment flow in during 2013. Photo: Reuters
By International Business Times

More foreign investment was pumped into the British Virgin Islands, a tax haven in the Caribbean, than some of the world's largest developing economies during 2013.

According to the United Nations Conference on Trade and Development (Unctad), total foreign direct investment (FDI) that flowed into the British Virgin Islands was $92bn (£55.4bn, €67.3bn).

This compares to $63bn of FDI into Brazil, one of the world's biggest emerging markets and a potential future superpower to rival China and the US.

Just $56bn flowed into Singapore over the same period and even less – $28bn – into India.

Moreover, Luxembourg, another tax haven, rocketed from 198th place in 2012 for FDI to 15th the following year with inflows totalling $31bn.

There is zero corporation, income or capital gains tax in the British Virgin Islands.

The net is closing on tax avoidance, however. Leaders across the G20 have agreed on a set of principles to tackle firms and individuals trying to dodge taxation by sheltering their money in havens.

Amid austerity programmes undertaken by governments the world over, which are seeking to balance their budgets by cutting back spending on welfare and public services, public anger over tax avoidance has intensified.

One by one, havens are signing up to information-sharing deals with developed economies as various tax offices hunt down exported and untaxed profits.

In November, UK Chancellor George Osborne signed a deal with the Cayman Islands that will see information handed over on British taxpayer with accounts in the haven.

The Cayman Islands is a tax free jurisdiction where no income or capital gains tax is levied on money that flows through the tiny state.

Top of Unctad's list for FDI in 2013 was the US at $159m. Second was China at $127m and third Russia at $94m – just ahead of the British Virgin Islands in fourth.

6 Responses to “UN: Foreign Investment in Caribbean Tax Haven Dwarfs India and Brazil”

  • 911 (30/01/2014, 08:52) Like (1) Dislike (0) Reply
    well saw they keep coming and coming after us
  • bay yute (30/01/2014, 11:52) Like (0) Dislike (0) Reply
    Again jah
  • xxxxxxxx (31/01/2014, 07:15) Like (0) Dislike (0) Reply
    What is the NDP government doing to save this industry?
  • yellow (01/02/2014, 17:17) Like (0) Dislike (0) Reply
    Who will save us from these attacks...Is it Alvin, Fraser or dr. smith
    • @ yellow (02/02/2014, 22:20) Like (0) Dislike (0) Reply
      Fraser will
    • reality (03/02/2014, 08:52) Like (2) Dislike (0) Reply
      If you understood the larger picture you would understand that this is mostly out of our control and the local Government only have limited control. If we clamp down on those foreign companies they would pull out and go elsewhere to do business. If our local people would only understand the industry and how they operate it would give us a much better understanding of what we're up against.

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