British offshore havens should raise taxes: report

A Treasury report wants British overseas financial havens to improve standards of regulation and raise taxes.

British government is worried that valuable sources of tax revenue are still going oversees.

The Crown Dependencies reviewed include Jersey, the Cayman Islands, the Isle of Man, Bermuda, and British Virgin Ilands.

Sir Michael Foot, who wrote the Treasury report, suggested that the Crown Dependencies should find ways to diversify their tax bases.

It may be noted here that British overseas financial havens have sovereignty over their tax affairs. Thus, many will try to maintain their reputation of low-tax economies.

According to an estimate, the British government loses up to £2 billion a year as companies prefer low-tax economies to mainland.