HMRC has received data on 277 businesses from tax authorities in 12 no-tax or only nominal-tax jurisdictions (Anguilla, Bahamas, Bahrain, Barbados, Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey, Turks and Caicos Islands, and United Arab Emirates) as part of the OECD’s ‘no or only nominal tax jurisdiction project’, reports multinational law firm Pinsent Masons.
The project involves these 12 jurisdictions exchanging tax information under the OECD’s Forum on Harmful Tax Practices global standard (part of BEPS Action 5) – the aim of which is to ensure that business income is not booked to low tax jurisdictions with the core functions of the business carried out elsewhere. The exchanges of information started in March 2021 and are conducted annually.
Pinsent Masons reports that ‘HMRC is particularly on the lookout for ‘high risk’ UK businesses in tax havens. This includes those set up only to hold intellectual property, without having any significant operations in the tax haven’.
Jake Landman, Partner at the firm commented: ‘HMRC has received a total of 429 records, relating to 277 UK taxpayers, which may suggest that some taxpayers are engaged in more than one tax haven. This may heighten HMRC’s assessment of the taxpayer’s risk profile.’
HMRC has received data on 277 businesses from tax authorities in 12 no-tax or only nominal-tax jurisdictions (Anguilla, Bahamas, Bahrain, Barbados, Bermuda, British Virgin Islands, Cayman Islands, Guernsey, Isle of Man, Jersey, Turks and Caicos Islands, and United Arab Emirates) as part of the OECD’s ‘no or only nominal tax jurisdiction project’, reports multinational law firm Pinsent Masons.
The project involves these 12 jurisdictions exchanging tax information under the OECD’s Forum on Harmful Tax Practices global standard (part of BEPS Action 5) – the aim of which is to ensure that business income is not booked to low tax jurisdictions with the core functions of the business carried out elsewhere. The exchanges of information started in March 2021 and are conducted annually.
Pinsent Masons reports that ‘HMRC is particularly on the lookout for ‘high risk’ UK businesses in tax havens. This includes those set up only to hold intellectual property, without having any significant operations in the tax haven’.
Jake Landman, Partner at the firm commented: ‘HMRC has received a total of 429 records, relating to 277 UK taxpayers, which may suggest that some taxpayers are engaged in more than one tax haven. This may heighten HMRC’s assessment of the taxpayer’s risk profile.’
