The British Virgin Islands have topped the list of countries known to allow corporate tax abuse.
The Corporate Tax Index is a ranking of the jurisdictions that contribute the most to multinational corporations underpaying corporate tax.
According to the Tax Justice Network (TJN): “The Corporate Tax Haven Index thoroughly evaluates the tax and financial systems of each jurisdiction to provide a clear picture of the world’s greatest contributors to global corporate tax abuse and to highlight the laws and policies enforced by Policy makers can reduce their jurisdictions, which allows corporate tax abuse. “
Also on this year’s list were the Cayman Islands and Bermuda, which were in second and third place.
Over the past two years, the BVI has seen the financial volume of multinational corporations grow 15 percent. TJN said this went a long way towards getting them high on the list of tax abuse promoters as it dramatically increased the country’s role in facilitating profit sharing.
In its most recent report, the Tax Justice Network openly criticized the Organization for Economic Co-operation and Development (OECD), saying that although global tax laws were set by its members, the OECD and its dependencies are among the greatest facilitators of global tax abuse.
The United Kingdom is a founding member of the OECD.
Ten British overseas and two Commonwealth territories were added to the list of 70 taxpayers.
According to the Tax Justice Network’s Corporate Tax Index, the top ten drivers of corporate tax abuse worldwide are:
- British Overseas Territory
- Cayman Islands (British Overseas Territory)
- Bermuda (British Overseas Territory)
- Hong Kong
- Jersey (British Crown Dependency)
- United Arab Emirates
Other Caribbean countries that make the list include the Bahamas, which is number 12; Curacao-29, Turks and Caicos Islands-36, Anguilla-39, Aruba-56 and Montserrat rounded off the list at number 70.