BVI among top tax havens for US taxpayers to avoid taxes

According to the report from the left-leaning Citizens for Tax Justice and the U.S. Public Interest Research Group, the British Virgin Islands is among the top three offshore jurisdictions for U.S. companies. Along with the Cayman Islands and Bermuda, BVI is hosting subsidiaries of giant multinational companies which filter their profits through business units on these islands, to avoid high U.S. corporate taxes. The most recent figures available show that US-controlled companies in these three offshore jurisdictions reported US$155 billion in profits in 2010, while the gross domestic product of the countries in 2010 was just US$10 billion.

It is estimated by the Organization for Economic Co-operation and Development that due to tax loopholes the companies around the world can legally save in taxes US$240 billion annually. The new tax rules were formulated, with participation of over 60 countries, aimed to clamp down on
“aggressive tax planning arrangements” by corporations and encourage countries to share more tax information.

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