Financial Transparency Coalition

The UK's Channel 4 News decided to go to the Channel Island of Jersey, where over 600 of these subsidiaries are registered, to investigate the problem further. Its a great summary of the issues facing the United Kingdom, and how companies use jurisdictions like Jersey to brazenly avoid taxation.

I have the following comment on the Guardian site this afternoon: George Osborne said this was a budget to tackle avoidance. How wrong he was. Lawyers and accountants all over the country must be jumping for joy this afternoon – unless they’re in the Channel Islands. Employee benefit trusts – often based in Jersey – are going to be hit hard by this budget, and rightly so. These are last remnants of the age-old pursuit of avoiding PAYE. If they’re consigned to history Osborne’s done at least one thing right. And Osborne gets full marks* for tackling another abuse long overdue to...

Outlook: And so Liechtenstein has surrendered. Following on from the tax information exchange deal with the US comes a similar one with the UK. There will be an amnesty for around 5,000 account holders who could have stashed up to £3bn in the tiny principality, together with a tacit assurance that they won't be prosecuted if they agree to assume the position and pay up. They'd be well advised to do so because it is more than people in other tax havens may be offered.