Offshore Centers Told To Make Central Register

LONDON – Offshore companies may soon have to reveal the identities of their ultimate beneficial owners, with the information to be recorded on a central register.

Late last week the UK government instructed the British Virgin Islands and the Cayman Islands to set out a timetable for the implementation of a central register of companies.
As part of the proposed central register, information about the ultimate beneficial owner of each company will be made available in the register.

The central register is intended to help combat international tax evasion, as it will become more difficult to use offshore shell companies to unfairly dodge taxes.

However, authorities in both the British Virgin Island and in the Cayman Islands have already objected to the proposed register, saying that it will raise compliance costs, will reduce competitiveness, while also introducing more opportunities for fraud.

Similar requests to create a central register has been sent to Bermuda, which has already complied and create such a register.