The system set up by the U.K. a century ago may be coming to an end and not before time imo.
“Britain created a loophole that made it a tax haven less than a century ago, when the House of Lords ruled in a case involving a UK company that traded in Egyptian land. The 1929 decision allowed foreigners to set up companies in the UK that would not be considered UK resident under British law because they were controlled from overseas. Crucially, they could be shielded from taxation at source because they were incorporated abroad. That judgment sent history scurrying towards the creation of an “offshore world” of tax havens through which nations compete to offer the least possible corporate tax and the greatest possible secrecy.
Many countries, led by the African Group, are seeking a right to tax economic activity where it takes place. If enacted, this could see the convention, legally binding on contracting states, to require multinational corporations to pay tax where they employ staff and do real work, instead of in tax havens where they hide profits. Many countries, led by the African Group, are seeking a right to tax economic activity where it takes place. If enacted, this could see the convention, legally binding on contracting states, to require multinational corporations to pay tax where they employ staff and do real work, instead of in tax havens where they hide profits.
Joseph Stiglitz, a Nobel laureate in economics, pointed out this month: “Tax avoidance has impeded governments all over the world from providing basic services to their citizens, contributing to global inequality, which is at an all-time high. Fewer than 3,000 people hold nearly $15 trillion – equivalent to the annual GDP of Germany, India, Japan, and the United Kingdom combined.”
The U.K. through its dependents and overseas territories is responsible for 25% of tax dodging.
Historically the U.K. began this mess and should show responsibility and help clean it up.
It is time for principles to be put over profit
Good Morning Tuesday 5th May 2026
