29 May 2019
Britain’s offshore territories the British Virgin Islands (BVI), Bermuda and the Cayman Islands were named in a study released on Wednesday as the most significant jurisdictions used by global companies to minimise their tax bills.
Governments are stepping up efforts to recoup more tax from multinationals, with the European Commission forcing iPhone maker Apple to repay 13 billion euros after it used Ireland to cut its tax on European profits to almost zero.
The Tax Justice Network, a group campaigning for transparency, said its study measured multinational activity in each country in 2017, as well as tax rates and loopholes.
While tax evasion is illegal, companies are not forbidden from reducing their bills by taking advantage of loopholes such as moving profits through countries or territories that impose lower taxes, including those with close legal ties to Britain.
A British government spokesman said tackling tax avoidance was a priority and that the country had “been at the forefront of international action to reform global tax rules”.
By John O’Donnell, Reuters, 28 May 2019
Read more at Reuters
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