Oxfam lists captive domiciles as tax havens
Bermuda, the Cayman Islands, Singapore, Ireland and Luxembourg are among the world’s 15 “worst” corporate tax havens, according to new Oxfam research. According to the report, cvalled ‘Tax Battles,’ the world’s worst tax havens are: (1) Bermuda (2) the Cayman Islands (3) the Netherlands (4) Switzerland (5) Singapore (6) Ireland (7) Luxembourg (8) Curaao (9) Hong Kong (10) Cyprus (11) Bahamas (12) Jersey (13) Barbados, (14) Mauritius and (15) the British Virgin Islands.
Oxfam said its researchers compiled the “world’s worst” list by assessing the extent to which countries employ the most damaging tax policies, such as zero corporate tax rates, the provision of “unfair and unproductive” tax incentives, and a lack of cooperation with international processes against tax avoidance (including measures to increase financial transparency).
Esme Berkhout, tax policy advisor for Oxfam said: “Corporate tax havens are helping big business cheat countries out of billions of dollars every year. They are propping up a dangerously unequal economic system that is leaving millions of people with few opportunities for a better life.”
Bermuda responded to the Oxfam report by stating that the report “ignores the substantial global economic contribution of this British Overseas Territory”.
“Unfortunately, many of the Oxfam assertions are based on flawed economics and lack of understanding,” said Ross Webber, CEO of the Bermuda Business Development Agency (BDA). “We consider it an inaccurate, ill-informed and disturbingly prejudiced attack on a small north-Atlantic archipelago that exerts an enormously positive impact globally-including on the very regions and populations Oxfam wrongly accuses us of threatening.
“Bermuda’s economic model is different to any other international financial centre,” Webber said. “We support close to a half-million jobs globally, creating employment not only on the island itself, but also in onshore trading partners.”
The BDA also explained that the island’s global reinsurance market is vital to other countries’ economic health and survival, noting that Bermuda is home to companies that provide 35% of capacity for Lloyd’s. It also pointed to the African Risk Capacity (ARC) and Blue Marble Microinsurance as initiatives that help African states become more resilient, and help to close the protection gap in the developing world. It also said that Oxfam’s labelling of Bermuda as a tax haven contradicts the OECD’s opinion.
