A Labour government would push for UK overseas territories to be put on an international ‘blacklist’ if they refuse to co-operate in the drive against tax avoidance. Ed Miliband recently stated “Billions of pounds are being lost in tax avoidance. Today we’re serving notice on ‘tax havens’ linked to Britain that they must open their books within six months of a Labour government, or face international action.”
He added, “Britain is losing billions of pounds in lost revenue that could be invested in our future.” Mr Miliband dismissed claims that Labour was anti-business, saying: “It’s not pro-business to defend tax avoidance.” Are you in agreement with Mr Miliband’s comments?
There are many UK and international companies that choose to operate “offshore” so do you think this could spell the end of the lucrative “tax havens”? Is it a reasonable request that these companies should be expected to contribute to the UK economy?
Following the financial crisis in recent years, the UK economy has endured highs and lows, and taxation is one of the many sources keeping the economy robust. You will be aware of the many cuts to services and subsequent job losses being made over recent times and so it seems the Government is always seeking new ways in which to generate cash into the coffers. Labour cites research suggesting that nearly £5 billion a year is lost to the UK Exchequer from tax evasion in offshore financial centres. This is a huge sum; do you agree this figure is an accurate reflection?
By targeting overseas territories this would ensure that any companies operating offshore effectively ‘pay their way’ in the future? Are you in favour of this? What are your views on transparency in overseas finances? Do you agree with Ed Milliband that offshore territories should be pursued?
Guernsey International Business Association said Guernsey was committed to transparency. Chairman Peter Mills said Mr Miliband’s view was ‘based on ways of old and not what is going on nowadays’.
Bermuda also issued a statement expressing ‘surprise and disappointment’, though it was prepared to discuss ‘sharing best practice across borders in areas of corporate transparency’.
“Calling for the blacklisting of a jurisdiction that already operates to a higher standard than the UK, and indeed most other countries, will not impress the Organisation for Economic Co-operation and Development,” commented Jersey Finance Chief Executive Geoff Cook TEP. “Miliband’s statement sadly seems to bear all the hallmarks of electioneering, and is designed to put pressure on the Cameron administration.” Do you agree with this statement?
In a report issued in 2000, the Organisation for Economic Co-operation and Development (OECD) identified a number of jurisdictions as tax havens. Between 2000 and April 2002, 31 jurisdictions made formal commitments to implement the OECD’s standards of transparency and exchange of information. 7 jurisdictions did not commit to transparency and exchange of information at that time and were identified in April 2002 by the OECD’s Committee on Fiscal Affairs as uncooperative tax havens. All of these jurisdictions subsequently made commitments and were removed from the list of uncooperative tax havens.
British Finance Minister, George Osborne, said Miliband’s plan would alienate allies like the United States, France and Germany because the Labour leader was saying he’d blacklist any country that didn’t have a central register. “I think he makes it up as he goes along and if you actually look at what he’s saying, he’s saying he wants to blacklist almost every country in the OECD because they don’t have these central registers,” Osborne told the BBC’s Andrew Marr Show. Miliband’s office dismissed Osborne’s comments as ridiculous. Do you agree with his comments?
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