The new fiscal policy in the dependent territory of the UK

30.11.2012

The United Kingdom is actively negotiating with its dependent territories, including the British Virgin Islands, about the possibility of a more thorough exchange of tax information. According to some reports, the British authorities are developing an act that would be similar to the U.S. law on fiscal compliance requirements for foreign accounts (Foreign Account Tax Compliance Act, or FATCA).

It is obvious that FATCA was thoroughly investigated by the British authorities, which resulted in pressure from the metropolis to the dependent territories, including Jersey. Correctly and on time, that the official representatives of Jersey, Guernsey and the Isle of Man are going to hold a meeting with representatives of HM Treasury, to understand what measures British officials are going to take and to state its position on the matter.

On the basis of: http://www.tax-news.com/

Expert’s opinion

"It is not a secret that almost no offshore jurisdictions signed agreements on the exchange of information, or the DTA. These agreements will go counter to the purpose of offshore companies. However, almost all of the offshores are the former colonies of European states. And just as they signed such agreements with a number of his former powers.

Nowadays, the United Kingdom seriously attended to the preparation and signing of such agreements with a number of its client states, such as the British Virgin Islands. Note that in 2008, the UK Government has already signed an agreement on the exchange of information with respect to taxes and avoidance of double taxation with respect to taxes on income with the islands. However, according to the authorities, it is not sufficiently mature.

To replenish the state treasury the government had to work out all the new agreements and protocols. Of course, residents of England are not recommended to have offshore companies, especially next to the Queen."

Irina Lomakina ( Director of Moscow office “Honest&Bright”)