Island still suffering from ‘tax haven’ stigma
Friday 24th July 2009, 2:30PM BST.
UNFAIR criticism continues to be levelled at Guernsey as a finance centre, according to KPMG tax partner Tony Mancini (pictured).
The past week has seen life assurer Friends Provident reject a takeover proposal from Guernsey-based buyout vehicle Resolution because of what it described as its ‘totally inappropriate governance’ structure.
The UK firm then added that it would refuse to consider a deal unless Resolution altered its offshore base, which it sees as lacking in transparency.
And yesterday saw the island come under fire again in The Times for being the home to EMI and Terra Firma owner Guy Hands, who earlier this month vowed to stay away from the UK because of soaring taxes.
According to the paper, his arrival has sparked a debate on whether Guernsey should be a Monaco-style-low-tax bolthole for refugees from the financial crisis.
Mr Mancini said all the ‘Guernsey bashing’ was unfair.
In terms of Resolution’s pursuit of Friends Provident, he said the company’s set-up would be little different from any other buyout vehicle looking at purchasing a life assurer or other large company, so the comments against it, and the island were a little strange.
- To read Guernsey Press stories in full, click here for subscription details. Individual editions are now available online.
Island Life
All about Guernsey
Ambassador of the Year 2011
History & Heritage
Visitor Information
Guernsey's government
Campaigns
Voice For Victims
Voice for Victims is a campaign aimed at promoting the rights of those affected by child sexual abuse.
This is Guernsey
Guernsey Press
Useful Links
The attacks on the island as an offshore finance centre will continue as long as the UK Government,and the EU see Guernsey as an easy target.The UK today is no friend, and the island should move closer to total independence. The price for not doing this is to be told more and more what to do.Do you want to become just another part of the UK? A note of caution to the states, revenue from finance is good, but it can be overdone.Guernsey needs diversity, and affordable housing for it`s people.
Report abuse
Has it ever occurred to the tax haven benefactors like Tony Mancini that the reason the island suffers from a tax haven ‘stigma’ is because it is one?
Some of the critism may be unjust, but much of it is fair as far as the rest of the world is concerned. We welcome and embrace money that morally rightfully belongs to other jurisdictions tax intake, end of. If it was Guernsey’s taxes that were bleeding elsewhere we’d be looking to stem the flow too. We need to diversify, even if it means being poorer, at least we will be more stable in the long-term.
Report abuse
Marcel
If Mr Mancini is correctly quoted as saying “in terms of Resolution’s pursuit of Friends Provident, he said the company’s set-up would be little different from any other buyout vehicle looking at purchasing a life assurer or other large company, so the comments against it, and the island were a little strange” then he clearly doesn’t understand the case agains tax havens.
Perhaps he should look at Robert Peston’s blog on the Resolution business. He then might find the opposition not so strange after all.
Report abuse