When is a tax haven not a tax haven?

Fiduciary Wealth Team

One of the definitions of a tax haven is that there might be “lack of effective exchange of information with foreign tax authorities.” Unfortunately the dictionary definition needs to be amended as the recent spate of tax initiatives following on from the US FATCA means that many jurisdictions once thought of as being a safe home for sheltering investments from the prying eyes of your local tax authorities can no longer claim this to be the case. Whether you hold investments in the Channel Islands, IOM or more exotic locations such as Switzerland, the Cayman Islands or BVI information will be made available to your home state.