The BVI has ranked number one on the Corporate Tax Index (2021) — a ranking published biennially by global watchdog, Tax Justice Network (TJN).
The new report comes as the BVI government gets ready to pass new laws to tackle tax evasion and money laundering in its financial services system.
According to the TJN, “the Corporate Tax Haven Index thoroughly evaluates each jurisdiction’s tax and financial systems to create a clear picture of the world’s greatest enablers of global corporate tax abuse, and to highlight the laws and policies that policymakers can amend to reduce their jurisdiction’s enabling of corporate tax abuse”.
Sister territories the Cayman Islands and Bermuda ranked second and third on the list, respectively.
Why BVI beat all others countries
TJN said the BVI placed first because in two years, the territory increased the volume of financial activity it hosts from multinational corporations by nearly 15 per cent, thus increasing the global role it plays in enabling profit shifting.
In speaking of the new index, TJN criticised the Organisation for Economic Co-operation & Development (OECD), saying its members set global tax laws yet they and their dependencies are the biggest enablers of global tax abuse.
The United Kingdom was a founding member of the OECD.
Here’s the list of world’s top 10 biggest enablers of global corporate tax abuse, according to the 2021 TJN’s Corporate Tax Index:
- British Virgin Islands (British Overseas Territory)
- Cayman Islands (British Overseas Territory)
- Bermuda (British Overseas Territory)
- Hong Kong
- Jersey (British Crown Dependency)
- United Arab Emirates
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