The British government should compel its offshore territories and dependencies to publicly disclose corporate ownership data in a bid to prevent tax avoidance, a parliamentary group said in a report Thursday. The recommendations by the All-Party Parliamentary Group on Responsible Tax (APPG) would broadly attempt to close loopholes left unaddressed by the Organisation for Economic Co-operation and Development and the United Kingdom that permit corporations to use transfer pricing and other strategies to minimize their tax obligations, the report said. As part of that effort, U.K. officials should invoke their statutory powers to require some 17 British territories and crown...
U.K. overseas territories will not be required to set up public registers of beneficial ownership after Prime Minister Theresa May's government struck a deal with lawmakers to allow the passage of new anti-money laundering rules before national elections commence in June.
U.K. lawmakers will attempt to force the government to improve corporate transparency in its overseas, semi-autonomous jurisdictions, but could end up hindering the passage of key anti-money laundering legislation in the process, sources told ACAMS moneylaundering.com.
The British government has rejected calls by lawmakers to impose more-stringent corporate transparency standards on U.K. overseas territories and dependencies, claiming that the jurisdictions are already "well ahead" of other international tax havens.
U.K. overseas territories officials in London this week pledged to create central registries or similar effective systems to share data on beneficial owners more easily with financial crime investigators, but didn't disclose when and how they would comply with the initiative.