Can the UK force its modern-day “colonies” to introduce registers of beneficial ownership, asks James Brockhurst
A bitter debate has been simmering between the UK and the British overseas territories regarding the proposed introduction of registers of beneficial ownership. The proposal is that each overseas territory should create a public register which will document the ‘real’ ownership of shareholders of every company registered within its borders. Although this article focuses on the legal position concerning the overseas territories, the matter is also relevant to the UK’s Crown dependencies.
This development will have wide-reaching practical implications for company, finance and private client lawyers in the UK and beyond.
The UK Parliament is legislating to introduce such registers in the UK under the Small Business, Enterprise and Employment Act 2015. Alongside its own legislation, the UK is making rigorous demands that the overseas territories follow suit and introduce their own internal registers.
The UK government and its G8 partners believe that beneficial ownership registers will help combat cross-border tax avoidance and evasion. With this electorally popular objective in mind, the two largest UK political parties
.tmb-mov69x69.jpg?sfvrsn=7806223b_1)
