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Banking secrecy will soon be a thing of the past, a leading offshore tax adviser has claimed, following the recent run of concessions to financial transparency by offshore jurisdictions.
The agreements – including Switzerland’s decision last week to adopt the Organisation for Economic Co-operation and Development’s tax information guidelines – confirm that pressure from the major economic powers to be open and forthcoming with the details of financial dealings can no longer be resisted, said Howard Bilton, the chairman of international tax specialist The Sovereign Group.
These major concessions to an ‘international gold standard’ of tax information exchange are good news ahead of the G-20 summit next month, when world leaders are expected to step up the fight against tax havens, added Mr Bilton.
He went on to assure ‘responsible’ tax advisers and their clients that they will not be affected by the recent and mooted developments.
‘If taxpayers have genuine cross-border economic interests, it should be possible to use structures that are fully transparent and compliant,’ he said.
‘Advisors can achieve tax efficiency offshore in the same way as onshore: by using Government-approved pension and insurance products designed to encourage citizens to look after themselves.
‘This in no way means the end of the offshore industry,’ concluded Mr Bilton. ‘Increasingly, offshore centres provide stable, user-friendly and well-regulated platforms for international investment.
‘In many instances the onshore jurisdictions are cumbersome, slow and expensive by comparison. Hong Kong, for instance, acts as a crucial conduit for investment into China because it offers very good tax treaty, excellent professional services, rule of law and bilingual skills not available elsewhere.’
