The Society of Trust and Estate Practitioners (STEP), the worldwide professional body for practitioners in the fields of trusts and estates, today welcomed the release of Michael Foot’s review for the UK Treasury of the long-term opportunities facing the British Crown Dependencies and Overseas Territories as financial centres.
The report highlights the significant positive contribution these jurisdictions make to the liquidity of the UK market, providing net financing to UK banks of $332.5 billion in Q2 2009. It also acknowledges that most jurisdictions in the developed world seek to make their tax regimes internationally competitive. It recommends improved standards in financial regulation and tax information-sharing alongside moves by the Crown Dependencies to broaden their tax bases by collecting income or sales taxes.
STEP particularly welcomes the solid research base that the Report’s recommendations are based upon. Too often in this area debate has been based upon political pre-conceptions rather than factual analysis.
Director of Policy and Communications Keith Johnston said: “The release of the Foot Review finally recognises the key role these jurisdictions serve in securing liquidity for the city of London. The G20 needs to take account of the potential this positive role has in helping the global economy recover. The report gives them a platform to secure their future with some certainty. Many of our members are based in the jurisdictions concerned and we look forward to working alongside them to make sure their concerns are addressed.”
STEP would note, however, that the review’s calls for a move to automatic exchange of information must be met with caution in the wake of the results of the recent STEP survey, Offshore Evolution: The STEP Membership Perspective. The survey highlighted real concerns that exchanging tax information in an effort to flush out a minority engaged in evasion may compromise the confidentiality of those who are totally tax compliant, particularly if information is passed to unstable governments or potentially corrupt institutions in some countries.
STEP particularly welcomes the solid research base that the Report’s recommendations are based upon. Too often in this area debate has been based upon political pre-conceptions rather than factual analysis.
Director of Policy and Communications Keith Johnston said: “The release of the Foot Review finally recognises the key role these jurisdictions serve in securing liquidity for the city of London. The G20 needs to take account of the potential this positive role has in helping the global economy recover. The report gives them a platform to secure their future with some certainty. Many of our members are based in the jurisdictions concerned and we look forward to working alongside them to make sure their concerns are addressed.”
STEP would note, however, that the review’s calls for a move to automatic exchange of information must be met with caution in the wake of the results of the recent STEP survey, Offshore Evolution: The STEP Membership Perspective. The survey highlighted real concerns that exchanging tax information in an effort to flush out a minority engaged in evasion may compromise the confidentiality of those who are totally tax compliant, particularly if information is passed to unstable governments or potentially corrupt institutions in some countries.
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