VI under fire from international media over no ‘Tax Haven’ label
The report paid for by the Government body and done by the consulting firm Capital Economics based in the United Kingdom said the VI is responsible for providing some 2 million jobs worldwide.
In addition, the report entitled ‘Creating Value’ The BVI’s Global Contribution, stated that the tiny British Overseas Territory of some 30,000 residents “mediates over US$1.5 Trillion of cross border investment flows, the equivalent of two percent of the global GDP.”
The report from Capital Economics also claims that the VI helped the United Kingdom with some US$3.9 Billion in investments, the European Union, excluding the UK with US$4.2 Billion and China and Hong Kong with some US$2.1 Billion.
The report also stated that the Virgin Islands is not a Tax Haven as the international media likes to label the jurisdiction.
Negative international headline
However, the international media is lashing back. In about three published articles circulating, two by critics of the VI’s legitimate offshore centre, Business Insider and Tax Justice, they have sought to discredit the Capital Economics report.
In an article by ‘Business Insider’ headlined: 'The British Virgin Islands trying to prove it’s not a tax haven- campaigners aren’t buying it' by Camilla Hodgson, dated June 25, 2017, it stated that “critics have questioned whether a strong legal framework, which is available in other countries, is really what makes the BVI such an attractive destination for investors and businesses.”
They went on to say “tax campaigners point to the fact that the islands do not charge capital gains or corporation tax and are known for being secretive about who owns the companies that are registered there.”
Additionally the article stated: “the ‘not a tax haven’ line is basically only one you ever hear from tax havens,” Alex Cobham from Tax Justice Network told Business Insider.
In another article critical of the Capital Economics Report and the VI is by the Tax Justice Network with the headline ‘The BVI: Responsible for worldwide tax losses of $37.5 Billion a year’, an even more harsh report of the VI.
They claim “the rest of the world is paying around $1.25 Million every year for each of the 30,000 inhabitants of the BVI, as a massive subsidy of the islands’ secrecy model. And that’s before we factor in the undoubtedly large, non-tax costs of the corruptions that BVI facilitates through its anonymous companies.”
Julian Willock defends again while others are AWOL
However, Julian Willock, a former Permanent Secretary and local businessman who often speaks to the international media on the Territory’s offshore financial sector, disagrees with the international criticism.
In an invited comment, Mr Willock said, “the state of Delaware, USA is the biggest tax haven in the world and people in the industry knows that, but I often ask why are there no articles and headlines about that?...I am sure most progressive thinkers can draw their own conclusions…it’s just not fair, as we remain the most transparent and highly regulated offshore sector in the world…”
Mr Willock, who spoke last year to BBC Radio and this year to the National Public Radio heard in the New York City, New Jersey area in April, said “our laws are tougher than those in London, Paris, Switzerland and many states in the USA, and we comply with all the global regulatory bodies set up to ensure transparency.”
“Do you know that the United States have not even signed on to new global disclosure standards that are forcing companies to reveal their real owners around the world, compared with other developed countries. Where are the headlines about that and the labeling as a tax heaven?” Mr Willock asked.
When asked what the VI should be doing, the political aspirant told our newsroom, “the VI should continue to defend our offshore sector, while remaining calm and point out the double standards and that we continue to comply with all local and international regulations, and laws…. We should not be afraid to promote what we do here…”
When ask if this could be the end of the Financial Services Sector in the VI, Mr Willock replied “No, but there will be a shift from volume incorporations to value added services.”
Despite the three articles in the international press being critical of the VI's financial services sector within the past 2 days, the Dr The Honourable D. Orlando Smith (AL) led Administration has remained mum.
See links to reports from Business Insider and Tax Justice Network:
http://www.businessinsider.com/british-virgin-islands-a-tax-haven-or-legitimate-business-hub-2017-6
http://www.taxjustice.net/2017/06/21/bvi-blagging-venal-income/
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39 Responses to “VI under fire from international media over no ‘Tax Haven’ label”
What we need are true fighters- that is, intellectuals who haven’t been too refined and still possess their naturally sharp streets instincts- to defend our industry and not another set of comfortable, money-sucking, linear-thinking intellectuals who have completely lost their fight or flight instincts in order to acquire the taste for more undeserving materialistic white-collar type inclinations.
These international organized critics are making serious chess moves and this government continue to counter like they are still trying to master checkers.
In the meantime, once again, wasting hard earned tax dollars on such an unbalanced report. In fact, it strongly seems like these consultants are milking the opportunity by being paid, big bucks, twice for a similar report which they used to promote Jersey in 2016 in the same light.
NDP has failed us both locally and internationally and to save what’s left of their reputations they have become desperate and fiscally irresponsible: waste, waste, waste, and more waste of taxpayers’ funds.
And let’s not be mistaken, the ministry of education is not off the hook either.
We were only waiting for the “spin” to subside because we didn’t want to deflate the happy moment for our children. However, for those who know better, we understand how the “grade curve” was applied to justified this extra wasted year and how it has been used as a tool to justify its apparent success. Further comments will be presented after the methodology has been thoroughly evaluated against the outcomes; that is, if we are given the opportunity to do so knowing the track record of secrecy and non-transparency of this current government who have politricked/duped/swindled/conned us into voting them into office.
Taxpayers/Voters, listen-up! We need to rid ourselves of all these current coons and coonettes before they further brainwash, hoodwink, bamboozle, and trick us all once again into voting them in. The fabric of our society is, at present, being torn from every direction because of these current detached, self-absorbed, delusional, power-hungry (even to the point of using our children as checkers in the game), and “allegedly corrupted” elected leaders.
I wonder how much they paid Capital Economics to repeat the Jersey job but with less success.
Why does it focus on the local economy so much.
What is the message it is trying to put forward, apart from meaningless guessed figures which can be easily turned around?
I said that years ago .I also told some ministers if they do not be careful the crystal ball will go into pieces . I blog on it recently and some people blog sh*t . But believe me if the premier do not wake up he will ruin what is left of the BVI. They think only them have common sense but some of them only have book sense and not common sense. When people travel aboard to those big countries you learn a lot just listening to people. Those big countries does send their spies all over the globe even here and I am quite sure these power hungry /////////does dine and give out information to them.
Ask them if this happens in Delaware USA
Leave the bvi alone us full a sh***t
in their full control. england much the same - nothing new here except the psychotic made up situations like the
panama papers being created to whip up the moron masses into a riot. usually rioting them against a little place
like this one. but it is true most of the banks here that are big foreign multinational ones - do suck and get away
with murder when they should be kicked out. this is against the customers.