On the The exchange of information between UK sovereign tax havens and HMRC

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The Bahamas Benefits by being Independent

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Could the Bahamas as an independent nation be perfectly poised to benefit from a very British form of FATCA? (Foreign Account Tax Compliance Act)

British “Crown Dependencies and Overseas Territories” (CDOTs) will have to exchange information with Her Majesty’s Revenue & Customs (HMRC) from 2016 onward.  Some of the territories to be effected are:

  • The Turks & Caicos Islands
  • The British Virgin Islands
  • The Channel Islands
  • Monserrat
  • Bermuda
  • Anguilla
  • Gibraltar

This is a major step forward in eroding offshore confidentiality. In particular, if the UK makes the information available to all double tax agreement partners, the impact of such information could be far more reaching than FATCA.

The European Parliament has voted to adopt the amended Fourth Money Laundering Directive, requiring EU member states to set up publicly accessible registries of the beneficial owners of companies and trusts. The decision created a “back door” by which CDOTs have been asked to do the same. After all, how is the UK expected to comply and not request that it’s CDOTs adhere to a similar process.

Have you had a discussion with your wealth planner concerning CDOT compliance?

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