To end offshore tax evasion and corruption the United Nations has been urged by the Tax Justice Network(TJN) to coordinate a global effort, amid warnings that the and warns UK is still protecting overseas territories from financial transparency.
TJN’s chief executive, Alex Cobham said, “The 2018 release confirms the long-term picture that the richest and most powerful countries have continued to pose the greatest global risks – with Switzerland and the US established as the key facilitators of illicit financial flows.”
“If we are to end tax evasion, corruption, fraud and money laundering, the world’s major financial centres need to clean up their act. And since they are not willing to do that voluntarily, the UN should create a global convention to end financial secrecy once and for all.”
Switzerland, the US and the Cayman Islands are the biggest contributors to global financial secrecy according to the survey, which is published every two or three years.
The UK does not feature in the top 10 secrecy jurisdictions. However, the TJN warned that the country was continuing to frustrate moves towards greater transparency by protecting its overseas territories former colonies, some of which have since become prominent tax havens from reform.
The TJN acknowledged the UK had made progress at home, including by introducing a register of beneficial ownership for domestic companies, but said government efforts to encourage reform in Britain’s overseas territories had stalled following the 2017 general election.
“In recent years the government of the UK refused to impose more financial transparency on these territories, especially with regard to trusts, and “there is now real concern about the damage this promotion of illicit financial flows, the group said.
A spokesperson for HM Treasury said: “Overseas territories are separate jurisdictions with their own democratically elected governments and they decide their own fiscal matters.
>Juthy Saha
