According to the new report by British company Capital Economics, the assets held offshore in the BVI jurisdiction are worth US$1.5 trillion, twice more than the 2010 statistics of the International Monetary Fund. Two thirds of the BVI-registered companies are for corporate structuring, meaning they are used for tax planning purposes.
By the Capital Economics estimations, offshore structures with British Virgin Islands companies allow to avoid up to US$750 million tax. Also offshore tools help businesses to maintain high level of secrecy, as BVI allows for less transparency than for example UK. The jurisdiction is convenient for UK businesses, as being a British Overseas Territory it applies legal system similar to the British one. The companies, many of which are British-owned, make billions of dollars in annual revenue.
The report stated that quarter of BVI companies are funds and investment tools, not the operating businesses, and 5 per cent are holding companies for property and family wealth.