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Evasion agreements made by British Overseas territories

The overseas territories of the UK, namely the Turks and Caicos Islands, Montserrat, the British Virgin Islands, Bermuda and Anguilla, have decided to allow greater transparency when it comes to tax collections.

They have come to an agreement to bilaterally exchange information automatically with the United Kingdom, and on a multi-lateral basis with countries in the G5 (Spain, Italy, Germany and France).

The agreement essentially means that countries taking part in the initiative, including the UK, will automatically be given information on bank accounts of taxpayers, including account balances and numbers, names, addresses and details of deposits made into the accounts. Accountants in Liverpool, on the Wirral, and in other areas in the UK, are expecting to be called upon for advice.

This further includes information pertaining to specific accounts kept by such entities as trusts.

David Cameron, Prime Minister, this year described transparency of tax as a major issue for the G8 summit.

George Osborne is encouraging others to take up the scheme. He said:

“I now hope others follow these governments’ lead and enter into similar commitments to this new level of transparency, removing the hiding places for those who seek to evade tax and hide their assets.”

The agreements follow on from those that the UK made with Jersey, Guernsey and the Isle of Man to automatically exchange information regarding tax based on their innovative agreement they have with the US, which implemented the US FATCA law. The law was designed to combat tax evasion.

Posted by Louise
May 15, 2013
Tax

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