TFIGlobal
TFIGlobal
TFIPOST English
TFIPOST हिन्दी
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
No Result
View All Result
TFIGlobal
TFIGlobal
No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

Infamous Tax Havens: British Virgin Islands

Akshay Narang by Akshay Narang
December 25, 2021
in Americas
British virgin Islands, tax haven
Share on FacebookShare on X

Imagine a territory with no industry, not much farming, no taxes and just tourism and finance. Well, that’s the British Virgin Islands for you. People say that it’s a tax haven. In fact, many identify it as a leading tax haven though British and local authorities deny the allegation. So, let’s dive in and see what makes the British Virgin Islands famous (or infamous).

Colonial roots

As a Caribbean territory, the British Virgin Islands have a history similar to many other countries and islands in the region. In the medieval era, Europeans were travelling around the world. You know they were doing a favour to the rest of the world by taking all their wealth and ‘civilising’ them. They did this favour to India, Africa and the Caribbean.

Also Read

EU’s Rule of Law Witch Hunt: Greece Under Fire!

The Unexpected Reunion of Austria and Russia

Castro’s Child Protege is Bringing Castroism Back to Cuba

So, Christopher Columbus spotted BVI on his second voyage in 1493. The Spanish claimed it, and then the Dutch came in. But ultimately the British Empire took over in 1672, and well the Crown decided that it will never leave the archipelago.

Tourism

Located in the Caribbean, the British Virgin Islands are, of course, tourist-friendly. In fact, the islanders earn 45% of their income from tourism.

And since there aren’t natural resources to exploit or many other sources of income, authorities in the British Virgin Islands are quite enthusiastic about all the tourism coming in. 

An offshore paradise

So, you would be thinking that tourism is the biggest economic activity in the Caribbean archipelago. Well, no. British Virgin Islands (BVI) get much of the rest of their income from financial services.

So, financial services account for over half of the local economy. But how? There are no famous banks in the region. Nor is the archipelago known for non-banking financial corporations. If you walk through Road Town, the archipelago’s capital, you will see hens and roosters on a chaotic, narrow lane of Main Street. There is nothing to suggest that there is much financial activity happening in the archipelago.

So, how does it manage to derive so much of income out of financial services? I will tell you.

The presence of offshore companies is what brings all the money to this Caribbean archipelago. The authorities get 52 percent of revenues from license fees of offshore companies.

BVI is home to 400,000 companies, holding $1.5 trillion in assets. For a territory of 30,000 people, the number of companies is way too large and don’t even get me started on the value of assets they own.

Offshore companies made BVI a tax haven

BVI do not work like say the Swiss banks. Let me explain. In the case of Swiss banks, there is strict secrecy in banking. So, if for example, you were fortunate enough to have a billion Dollars and happened to have deposited them in a Swiss bank, the bank won’t disclose it to your government. Now, your government can’t zero down on you with your financial details.

There is no secrecy in the case of the British Virgin Islands, rather there is a zero percent taxation policy- no capital gains tax, gift tax, inheritance tax, sales tax or value-added tax. And this allows businesses to set up offshore companies and evade tax. Let me take an example. Let us take the example of the UK itself.

The UK has a corporate tax rate of 19 percent. This means a company has to pay 19 percent tax on its operations in the UK. Now, the same company moves its company headquarters to the British Virgin Islands, where there is zero percent corporate tax, and books its profits in the British Virgin Islands. Now, it will pay the lower tax rate, which will be- well zero, instead of paying taxes where business activity actually took place.

This makes BVI popular as an offshore destination. At one point, almost half of the world’s offshore companies were located in this archipelago.

While authorities may deny that BVI is a tax haven, 50 percent of the shell companies unearthed in the Panama Papers were set up in BVI. The Papers showed that 140 politicians and public officials, as well as tax evaders, drug traffickers, and fraudsters had links to secret companies.

The Panama Papers leak thus served as a barometer of how popular BVI has been with shell companies. Zero tax and a system that encourages setting up offshore companies is what makes BVI an infamous tax haven.

Tags: British Virgin IslandsExhaustive Reads
ShareTweetSend
Akshay Narang

Akshay Narang

Patriot, Political Analyst, International Relations expert

Also Read

‘Free Palestine’ Attacker Injures 8 at Jewish Event in Boulder — FBI Investigates Hate Crime

Eight Injured in Colorado Terror Attack Targeting Jewish Community Rally

June 2, 2025
U.S. Trade Court Blocks Trump’s Tariff Plan

U.S. Trade Court Blocks Trump’s Tariff Plan, Citing Overreach of Presidential Authority

May 29, 2025
Elon Musk bows out of Trump Administration in a blaze of criticism

Elon Musk Bows Out of Trump Administration in a Blaze of Criticism and Controversy

May 29, 2025
King Charles in Canada: A Visit to Support Canadian Sovereignty

King Charles in Canada: A Visit to Support Canadian Sovereignty

May 27, 2025
Massive Loggerhead Sea Turtle ‘Pennywise’ Rescued After Boat Strike Off Florida Coast

Massive Loggerhead Sea Turtle ‘Pennywise’ Rescued After Boat Strike Off Florida Coast

May 26, 2025
Trump Signs ‘Take It Down Act’ to Combat Revenge Porn and AI Deepfakes

Trump Signs ‘Take It Down Act’ to Combat Revenge Porn and AI Deepfakes

May 21, 2025
Youtube Twitter Facebook
TFIGlobalTFIGlobal
Right Arm. Round the World. FAST.
  • About Us
  • Contact Us
  • TFIPOST – English
  • TFIPOST हिन्दी
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy

©2025 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIPOST English
TFIPOST हिन्दी

©2025 - TFI MEDIA PRIVATE LIMITED

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.