Beautiful Virgin Islands

Tuesday, Jun 03, 2025

British 'Treasure Island' tax havens face a tempest

British 'Treasure Island' tax havens face a tempest

Britain’s exotic network of “Treasure Island” tax havens could be facing the biggest threat to its existence in half a century after the United States and its allies pledged to squeeze more tax out of large, profitable multinational companies.

The often distant islands of Britain’s former empire have served as the premier jurisdiction for everyone from cash-rich Chinese officials to Russian oligarchs to Western firms to hedge funds seeking lower taxes – or complete secrecy.

But a tax deal hashed out by Group of Seven finance ministers in a grand 19th Century mansion near Buckingham Palace is likely to hit Britain’s treasure islands hard after decades of dodging attempts by major economies to claw back revenue.

“This is a turning moment,” said Alex Cobham, chief executive of the Tax Justice Network, an advocacy group which campaigns against tax avoidance. “We’ll look back in five or 10 years and say: ‘Yes – that is when it shifted’”.

“There is a narrative shift – this active commitment to end the race to the bottom,” said Cobham, though he accepted that the specific details could still be poorly drafted and that politicians have for years promised to crack down.

The world loses out on $427 billion a year due to corporate and personal tax evasion, according to Tax Justice Network estimates. About $245 billion of that is lost to multinationals shifting profit into tax havens and the other $182 billion is lost to wealthy individuals squirreling away assets.

If the details of the G7 pledge become an enforceable reality, then global flows of hidden profits could be redirected in one of the most fundamental ways since the days when the British empire crumbled in the 20th Century.

As British power collapsed, some of its possessions became self-governing territories that were not part of the United Kingdom but which came under British defence agreements and preserved strong links with London.

Some of these 14 British Overseas Territories – including Bermuda, British Virgin Islands (BVI), Cayman Islands, Gibraltar and Turks and Caicos Islands – started to live off a blend of beach tourism and exotic finance that activists say left both locals and distant taxpayers short-changed.

RIVAL NETWORKS


British tax havens are responsible for 29% of the $245 billion in tax the world loses to corporates, according to Tax Justice Network, which ranks BVI, Cayman Islands and Bermuda as the top three enablers of corporate tax abuse on the planet.

The finance ministries of the BVI, Cayman Islands and Bermuda did not immediately respond to requests for comment.

Those British islands worst hit by the looming re-routing of corporate profits face a reckoning that will undermine the business model they have lived off for decades and that could lead to high unemployment, said Cobham.

Essentially, two rival and intertwined tax haven networks developed: a British lattice and a more continental European-flavoured one which includes Ireland, Cyprus, Luxembourg, Malta the Netherlands and Switzerland.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
China Accuses US of Violating Trade Truce
Panama Port Owner Balances US-China Pressures
France Implements Nationwide Outdoor Smoking Ban to Protect Children
German Chancellor Merz Keeps Putin Guessing on Missile Strategy
Mandelson Criticizes UK's 'Fetish' for Abandoning EU Regulations
British Fishing Boat Owner Fined €30,000 by French Authorities
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
×