Dominic Grieve, MP for Beaconsfield, thinks that changing the way our overseas territories do their business and possibly shutting down the way they operate as tax havens, would be “a bit of a nuclear option.” As long as they are carrying out their governments properly, he says there would be no proper grounds to intervene.
He thinks the best way of ensuring people do not go to the British Virgin Islands to avoid paying their taxes is "to provide the right environment" in the UK. If you have a tax environment that people find onerous, they will shift their tax affairs elsewhere.
So there you have it - tax havens are OK and if you want to keep rich people and companies registered in the UK, we have to let them off their taxes here.
Derek Berry, Wycombe Labour's spokesperson said
"Mr Grieve is correct in stating that independent states should be free to develop and enforce their own tax laws and regulations. It is however not generally permissible for an independent state to facilitate, by negligence, indifference or corruption, citizens of other states to break their own tax laws.
The tax regulations in the UK require us all to declare our profits, earnings and capital gains every year to the H.M. Revenue and Customs. The UK government would be justifiably condemned by all civilised nations if it encouraged non-citizens to use the UK to hide their incomes from their own tax authorities.
Mr Grieve's objections to stopping these offshore abuses that help people launder stolen money or use secret accounts to avoid paying their taxes legally due to their own tax authorities are puzzling. To try and claim that tackling these crimes in the BVI will encourages greater crimes elsewhere is an odd thing for lawyer to say. The solution is simple: the details of these offshore funds should be available for disclosure to all legitimate tax authorities"
Full article is at http://www.bucksfreepress.co.uk/news/14407611.Cracking_down_on_tax_havens_could__destroy__their_economy_and_livelihoods__says_MP/