Tax havens must reveal true owners of the firms they shelter

MINISTERS were forced to back down in the face of a Tory rebellion over offshore tax havens yesterday.

The Government said it would accept plans to ensure greater transparency in British overseas territories.

These will require the territories to publish a register listing the true owners of companies based in their jurisdiction.

Foreign Office Minister Sir Alan Duncan had warned against imposing rules on territories which he said were separate jurisdictions with their own governments.

But yesterday he conceded that registers should be made publicly available and the amendment was added to the Sanctions and Anti-Money Laundering Bill.

In the face of a likely defeat Sir Alan agreed to the proposal, which had been pushed by Labour’s Dame Margaret Hodge and Tory MP Andrew Mitchell and supported by around 20 other Tory MPs.

Ministers will need to ensure registers of company ownership are publicly accessible. Overseas territories such as the British Virgin Islands and the Cayman Islands would be required to establish registers by the end of 2020. The amendment does not include Britain’s crown dependencies, Jersey, Guernsey and the Isle of Man.

MPs and campaigners have said public registers would make it easier to uncover money-laundering, corruption and tax-dodging.

But Tory former Foreign Office minister Sir Henry Bellingham said he feared some territories would be looking at the move and asking ‘why should we remain in the British family?’

Orlando Smith, Premier of the British Virgin Islands, said the plans were ‘deeply flawed’ and endangered its relationship with the UK.

‘Deeply flawed’