Having made tackling tax avoidance a key priority for the UK’s one-year term as president of the G8, the Prime Minister wrote to the leaders of the overseas territories, including jurisdictions such as the British Virgin Islands, Jersey and the Isle of Man, in May asking them to sign up to tax sharing agreements.
In the letter, Cameron also invited the leaders to London on 15 June.
According to The Guardian newspaper, which is heavily campaigning against tax evasion, Cameron is particularly keen to ensure he is seen to be doing as much as possible to tackle tax evasion in “his own backyard”, before chairing the G8 Summit in Northern Ireland later this month.
Steps already taken
It should however be noted that many of the jurisdictions in question have already made significant steps to increasing tax transparency and information sharing, not only with the UK, but with Europe and the United States.
For example, the Isle of Man, Jersey and Guernsey are all well ahead with plans to enact intergovernmental agreements with the US, similar to those signed between the US and key European countries last year, having announced their intention to do so in October last year.
All three jurisdictions have also announced plans to enact agreements “based on the principles of FATCA” with the UK, with the Isle of Man becoming the first to sign, followed by Guernsey and Jersey.
The Cayman Islands was also quick to offer to sign up to a pilot scheme for banking and tax sharing being developed between the UK, France, Germany, Italy, Spain, after it was announced in April this year.
