Morning:
14°c
‘Locals will suffer’ in curbs on tax havens
Lucy Tobin09.04.09
The local population of offshore tax havens could be plunged into poverty if Gordon Brown's plans to clamp down on these regions come to fruition, an expert warned today.
That would leave these nations, some of them Crown dependencies, looking for aid. Howard Bilton, chairman of offshore tax adviser The Sovereign Group, said: “Amid all the pronouncements from world leaders about clamping down on tax avoidance, no one seems to have given a thought to the local populations of the offshore centres.”
Gordon Brown wrote to the Organisation for Economic Co-operation and Development last week to “urgently” address the issue of “tax avoidance” through offshore shelters.
But residents of those havens would be crippled by such a move. British dependencies rely on income from their offshore status.
In Guernsey, financial services provide almost a quarter of jobs, and 55% of the island's income. Residents in Jersey, the Cayman Islands and the Isle of Man are also concerned.
Reader views (3)
Big deal!!!
Do away with the tax havens immediately! This will put extra pressure on UK authorities and UK finacial services companies to come up with viable investiment vehicles for EVERYONE. Also ensure that businesses (and their owners) based in the UK actually pay UK taxes!
Most UK pensioners are currently seeing their capital being SLASHED in real terms as they attempt to pay their every day expenses this is because their capital (lifetime savings) in either the banks and/or the building societies are earning them diddly-squat in terms of interest! Our fat-cat Cabinet Ministers and MPs who appear to spend most of their time working out how best to maximize their allowances and expenses MUST be well proud of themslves . . . An extra �20K here and another �17K there etc etc! Such a hard life . . . NOT!
- Fraser, Telford Park
Clamping down on tax havens, cant see how that will create high value sustainable jobs within the UK. Seems like a waste of time or a ruse to deflect voters from the domestic economic disaster Brown has created.
- Ian, dartford
In guernse almost 25% of jobs generate 55% of income, so 75% are not at threat. So the only ones to be worried appear to be the financial players who mastermind the tax avoidance schemes in the first place. Locals don't get paid £millions per year. Perhaps Gord and his mates could subsidise those locals from the extra tax recovered from the banks and other financial institutions!
- Al, Kingstown UK
