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New Tax Avoidance ranking published

As tax transparency keeps being a priority in government agendas, studies and index continue to pile up showing different aspects of corporate law, tax calculation of profit shifting.

A recent study found Bermuda, the British Virgin Islands and Cayman as top jurisdictions for corporate tax structuring and tax optimisation.

As per the tax justice network publication, 40% of direct cross border investments go to 10 jurisdictions which happen to offer corporate taxation of 3% or under.

The top 10 of the ranking shows, the following jurisdictions as centers of global finance with tax optimisation regimes:

  1. British Virgin Islands (British territory)
  2. Bermuda (British territory)
  3. Cayman Islands (British territory)
  4. Netherlands
  5. Switzerland
  6. Luxembourg
  7. Jersey (British dependency)
  8. Singapore
  9. Bahamas
  10. Hong Kong

The same report shows that about 52 percent of the accumulated risk of tax avoidance is linked to the aforementioned top 10.

The top Three is composed of solely British Territories, which brings some extra pressure over the UK while Brexit is weakening its position within the EU.

The report notes that : “Of the 10 jurisdictions whose tax systems received the highest corporate tax haven scores for enabling corporate tax avoidance, 8 are part of the UK network: the British Virgin Islands, Bermuda, the Cayman Islands, the Isle of Man, Turks and Caicos, Anguilla, Jersey, and Guernsey.”

The editorial piece of publication criticises EU “Hypocrisy3 in the fight against tax avoidance.

In previous versions, the USA and Switzerland have seen the same criticism for lack of action against tax avoidance.

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Jaime Prieto

Mr. Jaime Prieto is a lawyer experienced in Financial Crime, Anti-Money Laundering and Counter Terrorism Financing having extensive professional experience in both public and private sectors. Mr. Prieto has been a Head of Compliance in the European Union, the Americas and the Caribbean for banks, trust companies, asset managers, Big Four audit and advisory firms, RegTechs, government agencies and other types of financial professionals. In addition to his experience, he has been legal and educational chair in several compliance and sectorial organisations and performed as a teacher and speaker for a number of organisations and in several local and international forums. Furthermore, Mr. Prieto is an experienced Money Laundering Reporting Officer anda Data Protection officer with additional experience in risk management.
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