Britain 'may be forced to bail out tax havens'

mattheman · 14 Sep 2009 at 17:44

http://www.guardian.co.uk/business/2009/sep/13/british-tax-havens-need-bailouts

Britain could be forced to bail out one or more of its offshore tax havens at huge cost, according to early drafts of a Treasury report, because the economic crisis has wrecked their finances.

Offshore expert Michael Foot will next month set out a number of options to government ministers in the report as anxiety grows within Whitehall over the health of Britain's overseas territories and crown dependencies.

Senior insiders say early drafts of Foot's report suggest that the government may need to make provisions for the financial failure of British tax havens. Experts suggest the failure of a major tax haven could potentially cost the UK tens, if not hundreds, of millions of pounds.

Government officials say they are aware that some British overseas territories are facing serious problems which could get worse. In the event of further economic deterioration, they could become failed states and be dragged into the illegal drugs trade, Whitehall insiders warn.

your views plz.

mattheman · 14 Sep 2009 at 17:50

Wicksta said:
How about your views, Mr RSS.

lol well just sums up this government, bail out the banks bail out the people that dislike tax as long as its in the interest of the british government yet strike out at non british tax havens.

mattheman · 14 Sep 2009 at 18:31

Well you possible already know my view, why should we bail out those tax havens, just seems like robbery bailing out again the rich.

mattheman · 14 Sep 2009 at 18:36

rypt said:
We should bail them out in return for them seeding complete political control to us ... so that we start charging some proper taxes

We cant have that, the rich wouldnt like it, nor would many uk politicians. but better point out that its all fault of the poeple on the dole.

mattheman · 14 Sep 2009 at 18:47

starfighter said:
So let me get this straight,

people put their money in these offshore accounts to earn more intrest on their money and pay less tax. So they don't contribute to our society or help our economy.

They took the risk knowing these havens have no big government to bail them out or protection, they gambled and lost.

Why should us lot who are likely poorer bail them out, bailing english banks out is bad enough but understandable.

Unless there is a very good chance they will return a profit in a short timeframe then no way.

Makes you wonder why the british govenment was persuing with a vengence secret tax nations like lichtenstein etc...

mattheman · 14 Sep 2009 at 18:50

dante6491 said:
Well welfare spending has increased by £10bn in 5 years

I really don't think that any particular group can be solely blamed, sure the banks went wrong big time, but at the same time Labour's spend spend spend policy has caused huge debts, and also meant that people feel it is OK to borrow huge amounts of money. If you want to really point a finger look at our illustrious PM who took away the Bank of England's power to regulate the financial markets.

gave the FSA powers to regulate the market, btw FSA senior and directors also work for various funds and banks, i wonder whose interests they were more in line with...

mattheman · 14 Sep 2009 at 22:16

scorza said:
Just to be clear, the article is talking about bailing out the governments of tax havens, not the tax avoidance financial services that exist there correct?

.

well they have certain tax rules, if it doesnt work then change them. On another note, could it be that gordon brown policy on tax havens has caused this mess? could it be the withdrawl of those funds thats creating this mess?