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Brexit Blows: EU pressured to add BVI to tax haven blacklist

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The territory is beginning to feel the effects of Brexit as Members of the European Parliament (MEPs) recently voted to add British Overseas Territories such as the BVI, Guernsey, and Jersey to its tax havens blacklist.

Several jurisdictions have been taken on and off the list since it was first launched in 2017. However, in the past, the UK had lobbied to protect its Overseas Territories from scrutiny.

EU member states have also typically avoided inclusion from the list. However, in a press release published after the vote, the EU politicians said: “EU member states should also be screened to see if they display any characteristics of a tax haven, and those falling foul should be regarded as tax havens too”.

A majority of 537 members of the European parliament voted for the resolution which called on the EU to revise the blacklist.

The European politicians said the blacklist failed to “live up to its full potential” as it currently covers less than two percent of worldwide tax revenue losses.”

They also said the Cayman Islands, the Bahamas and Guernsey should not have been taken off the blacklist a few months ago.

They singled out the Cayman Islands questioning why it was removed when it has a zero percent tax rate policy.

They also called for countries that have no taxes on companies’ profits to be automatically added to the list.

“Criteria should be added to ensure that more countries are considered a tax haven and to prevent countries from being removed from the blacklist too hastily, they say.

In February 2020, the EU upgraded the British Virgin Islands to whitelist status, which signals the country as a fully cooperative tax jurisdiction that is observing all of the tax good-governance standards.

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13 Comments

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  1. Reality says:

    If the BVI had not been protected by the UK, it would have been blacklisted decades ago.

    Like 30
    Dislike 1
    • Doh says:

      And down goes the other pillar of the economy…

      No offshoring, no tourists = no money. I fear for our future.

      But carry on.

  2. The Prof says:

    Guernsey and Jersey are not Overseas Territories, they are Crown Dependencies. There is a material and legislative difference. Please ensure you report this correctly in future as you could be swaying public opinion with fake facts.

    Like 15
    Dislike 2
  3. EU Citizen says:

    Ref. BVI in Panama Papers and Paradise Papers.

    Like 1
    Dislike 1
  4. Yawn says:

    The BVI Financial Services is better regulated than all of Europe. Every time they come with something the BVI enacts some law to reasonably comply whether BOSS, Economic Substance, Mandatory filing of Directors etc. They salty because we wont allow any old Tom, Dick and Harry to access confidential information that has nothing to do with them. Only law enforcement should be able to get information when they need. You cant just go to the bank or any reputable institution and ask how much money I got or what I own and get it so why would they think it is right for someone to be able to access my info publicly just so.

  5. EU RIGHT says:

    Idiots should have been collecting at least a fraction of one percent of the profits earned by companies registered. Leadership matters.

    Like 2
    Dislike 1
    • Second the motion says:

      I could not agree with you more. If zero taxation is the salient argument of the EU then simply enforce a very low taxation rate in order to remain compliant with International expectations. We can justify low rates by explaining that our needs are not great because of our smallness. Our customers won’t go anywhere because of the “increased” taxation and the territory would automatically receive additional money for their budget. Win Win!!! But of course the local(indegenous) companies may complain but incentives could be given to rebalance their position but if not they will have to understand that suggested taxation is what is needed to keep the economy robust. Locals will then because to continue to afford to support their businesses. So win win win.

  6. .... says:

    If they put us on the blacklist, let us repeal the Economic Substance Act, as nothing but our destruction will please the EU.

    • It says:

      is a well known historical fact that the EU man does not want to see the Black man and people prosper. It is not in his DNA to feel otherwise. So, he is doing what comes naturally to him.

      Create hardship for those obviously successful Caribbean, third world dependencies. Put them in their place.

      It grieves him to his core to see a prosperous Black person, country or nation.

      Say that isn’t so.

    • @..... says:

      And repeal CRS reporting too 🙂

  7. Poor BVI says:

    The BVI in the Late 80s into the 90s was the envy of the region and the world,,it was considered the richest and most prosperous little nation in the world,,, Now look where we at Now at the bottom becoming of bad leaders with no vision,, Focusing on enriching themselves,,No proper revenue investment,, We continue to eat up our annual budget with government rental of buildings,, By now government should have had At least two or more of the most beautiful building as offices,,, Every time we get New leaders they get worst,, selfish, ignoring the people,

    • Actually says:

      All the above is true except “it was considered the richest and most prosperous little nation in the world” because that is simply not true and never has been true,

  8. Citizen says:

    Imagine. We are in the year 2021 where they say systematic racism does not exist in the “developed” countries when the term blacklist and whitelist is ok and normal. What is so bad about a blacklist? Is it because most of the jurisdictions on it are mostly populated by non-caucasians? Why not simply call it what it is, a BLOCKLIST, won’t this term be more effective for its cause? They keep using these terms to continue the portrayal of being black as a bad thing subconsciously, from infancy in all races. What these caucasians are sowing they will reap in due time. They have been inhumane and barbaric to other races for most of their history. It’s only a matter of time.

    Like 1
    Dislike 1

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