BVI News

REPORT: BVI responsible for 3.8% of global tax loss

A section of the BVI’s main island — Tortola.

A new study published by global advocacy group, the Tax Justice Network (TJN) shows that annually, the BVI accounts for some 3.81 percent of global tax loss.

This data means the BVI accounts for almost four percent of the money that other countries around the world would have collected as tax from corporations and used to fund public services.

The report titled “The State of Tax Justice” is the first study to measure thoroughly how much every country loses to both corporate tax abuse and private tax evasion.

Its data shows the top 15 countries that account for the most tax losses in the world. The BVI places eighth on the list. In figures — the reported tax loss inflicted on other countries because of wealth said to be hidden in the BVI is more than $16 billion.

The country that placed first on the list is the Cayman Islands, which is responsible for 16.5 percent of global tax losses, equal to more than $70 billion. The others that rounded out the top five are:

2. The UK (10 per cent — over $42 billion)
3. The Netherlands (8.5 per cent — over $36 billion)
4. Luxembourg (6.5 per cent — over $27 billion)
5. US (5.53 per cent — over $23 billion).

The report shows that countries around the world are losing a total of over $427 billion in tax each year because of international corporate tax abuse and private tax evasion.

Multinational corporations and private citizens account for this amount taken away from countries’ tax coffers yearly.

The report shows that $245 billion is directly lost to corporate tax abuse by multinational corporations while $182 billion is lost to private tax evasion.

According to the report, multinational corporations paid billions less in tax than they should have by hiding $1.38 trillion worth of profit in tax havens, “where corporate tax rates are extremely low or non-existent”.

“Private tax evaders paid less tax than they should have by storing a total of over $10 trillion in financial assets offshore,” the report said.

The BVI’s Financial Services industry has come under fire from global groups in recent years. The territory was previously under threat of being blacklisted by superpowers such as European Union who accused the BVI of being a notorious tax haven. But later said it recognised the territory as a cooperative jurisdiction as it relates to its tax policies.

Be that as it may, the the aforesaid study has found that, collectively, “EU blacklisted jurisdictions cause less than 2% of global tax losses, EU member states cause 36%”.

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10 Comments

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  1. Finance says:

    This is why the financial sector is dwindling and will continue to do so. Governments around the world are increasingly on the hunt for tax evaders, money launders and criminal enterprises. Although this report indicates tax loss through corporations it says nothing of the illegal criminal money being hidden. Once again, the financial sector is dying so pump up the tourist sector or there will be nothing to generate income into the Territory

    Like 7
    Dislike 6
    • Agriculture says:

      Don’t lost hope in me BVI. Our seeds are sown. The Future is Green. When is time to Reap, ALL AH WE GOIN REAP!!! Then we going be seeing the “all blues no greens”.

      Like 1
      Dislike 2
    • Oracle says:

      @Finance you are just plain wrong. We are OECD compliant. This is a political hatchett job on flaky premises that make Rudy Giuliani seem kosher.

  2. Wow says:

    So it’s okay for US, UK etc. to be responsible for such a large chunk of taxes that other countries could have collected, but they label the offshore financial centers as the devil and making us jump through all these hoops.

    Like 18
    Dislike 4
    • Ha says:

      @Wow
      Well you can cherry pick data and present any way you like.
      The really figures that should be published are NET tax losses per capita.
      If this was the case then the BVI and other offshore tax havens would be responsible for the largest tax losses by a country mile.
      So the BVI and other offshore financial jurisdictions can save their victimhood for another day.

      Like 3
      Dislike 8
  3. Good Job BVI says:

    Top 10! Hire some consultants to show the governments low 150 basis point fees on AUM lead to sustainable development.

  4. Rubber Duck says:

    What’s great about tax? Mostly wasted by corrupt and incompetent governments or used to buy votes and socially engineer by arrogant politicians.

    The less they get their hands on the better.

    Like 12
    Dislike 4
  5. SOWHAT!!!!! says:

    SOO WHAT! LOOK AT WHO’S TOPPING US ON THE LIST! It doesn’t seems like they are to concerned about their positions? Does the position really prove or cause any legit effect to their/our industries? STOP LYING ON OUR BVI. LEH WE TAKE PRIDE IN THE POSITION THENN, IS BEST! Chupsss

  6. Hmmm says:

    None of the crooks who compiled that flawed document that is merely far left propaganda will be turning down the vaccines. But it is ok for them to do sweet tax deals to invite the Astra Zenecas and Pfizers to have bases in their countries?

    Of course, because remember corporate tax is actually a much smaller part of the expected tax take of well managed western nations.

    Same for other industries like manufacturing.

  7. White is Right says:

    Guess the man with the Big mic, most weapon decides what is right and what is wrong even when he is the one doing the wrong

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