THE race is on to see which will become independent first. For Scotland has a new competitor in the race to get out of Britain, and many citizens of the British Virgin Islands hope they will do so as soon as possible.
The BVI, as they are known for short, have been plunged into a major constitutional crisis after a corruption scandal and the European Parliament voting to add British overseas territories such as BVI to their blacklist of tax havens.
In a move which could cost BVI its main economic activity – hosting shell companies to avoid paying tax in other countries – the European Parliament made the blacklisting one of its first decisions after Brexit was completed.
The European Parliament voted by a majority of 537 to say that territories with 0% tax regimes should be automatically included on the tax haven list, meaning the 27 remaining EU countries will not allow their companies to have BVI accounts.
While the UK was in the EU, BVI and the other British overseas territories such as the Cayman Islands had some protection, but all that is gone.
The motion before MEPs mentioned Brexit and suggested that the UK’s deal with the EU was based
on “mutual values and geared towards common prosperity, which automatically excludes aggressive tax competition”.
It’s all part of the jousting between the UK Government and the EU over post-Brexit arrangements.
Robert Palmer, the director of the Tax Justice UK campaign group, told the Guardian: “Post-Brexit the UK tax havens have lost their protector within the corridors of Brussels. I’d expect to see the EU ramp up pressure on places like Jersey to clean up their act.
“The UK itself has been warned that if the Government tries a Singapore-on-Thames approach, with a bonfire of regulations and taxes, then the EU will act swiftly.”
Further complicating issues in BVI, whose constitutional arrangements with Britain are due to be reviewed soon, is the announcement of a commission to investigate allegations of widespread corruption on the islands.
The outgoing Governor Gus Jaspert announced the commission earlier this week, leading to open speculation that the British Government might take control of the BVI completely, as it did with the Turks and Caicos islands after a similar scandal in 2008-9.
Foreign Secretary Dominic Raab has backed the commission. He told the House of Commons: “The UK is extremely concerned about the state of good governance in the British Virgin Islands.
“A consistent and deeply troubling array of concerns have been put to the governor by local institutions and the community.
“The UK Government is responsible for ensuring the security and good governance of BVI.
“We have a constitutional and moral duty to protect the interests of the people of BVI. We cannot ignore such serious allegations.
“The commission will inquire into whether there is information to substantiate claims that corruption, abuse of position and serious impropriety has taken place in public office in recent years, and it will make recommendations.”
Islanders are worried that the commission will suspend the political arrangements in BVI and some have taken to social media to suggest that it might be time for the territory to start discussing independence. However, unlike in Scotland, it is for now the minority view.
Premier Andrew Fahie said that BVI is seeking a “just outcome” in the Commission of Inquiry which was not discussed with his government.
Fahie said: “I am determined that the elected government of the Virgin Islands will play a full, cooperative and constructive part in the work of the Inquiry.”
The Government has appointed as its leading counsel Sir Geoffrey Cox QC, the former attorney general of England and Wales, who will advise and represent BVI in all matters relating to the Commission of Inquiry.
The outcome could yet see BVI changing its constitutional status.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel