Media ›

British overseas territories deals push information exchange debate closer to "tipping point"

British overseas territories deals push information exchange debate closer to "tipping point"
1 May 2013
The debate around information exchange remains very much in focus for individuals, multinational companies and governments across the globe.

This has been highlighted today with a number of British Overseas Territories with significant financial centres, including the British Virgin Islands and Cayman Islands, signing up to the UK government's strategy on global tax transparency. The agreements also mean that information is exchanged multilaterally with other members of the G5 - France, Germany, Italy and Spain.

Whilst today's announcement largely impacts individuals, with the information exchange agreements relating to personal bank accounts, there is a strong possibility that this will pave the way for further pressure for greater transparency around those companies based in these jurisdictions, creating a tipping point for the level of disclosure that is demanded.

More than ever, companies need to be comfortable with the entire structure of their business activities to show sufficient substance at all levels. Tax planning must be on the Board's agenda as an integral part of commercial decision making. Having a considered strategy in place with the right people, the right location, the right documents, at the right time is crucial to ensure multinationals can pass increasingly challenging substance requirements, across the locations in which they operate.

Amidst these multiple conflicting interests, multinationals must consider the potential tax implications of a reformed tax system for their business, particularly given that another sudden burst of information exchange activity, extending beyond individuals to corporates, may result in a period of rapid change for the international tax landscape.


Your media contact for further queries is:
Barnaby Fry, MHP
T. +44 (0)203 128 8215
E. taxand@mhpc.com

Quality tax advice, globally

 

Taxand's Take

"Amidst these multiple conflicting interests, multinationals must consider the potential tax implications of a reformed tax system for their business, particularly given that another sudden burst of information exchange activity, extending beyond individuals to corporates, may result in a period of rapid change for the international tax landscape."

Taxand's Take Author