Jurisdictions
Regions
Industry Sectors
The UN Tax Convention
Finally, A Level Playing Field For Tax?
Alex Cobham
Tax Justice Network, Oxford
In 2025, for the first time ever, every country will be able to participate in a process to set international tax rules. The negotiation of a UN framework convention on international tax cooperation has the potential to deliver a truly level playing field for all. With the Republicans’ clean sweep in the US elections, this long overdue triumph of multilateralism will now take place against a backdrop of aggressive unilateralism. But that might just provide the catalyst for the world to achieve a fair and ambitious outcome.
A Century Of International Tax Misgovernance
There has never been a level playing field, or anything close, in the history of international tax. We can think of three main phases to that history.
First, the ‘pre-governance’ phase in the centuries during which European empires dominated the planet. The only significant international aspects of tax in this phase were the ways in which tax was used as a channel for extractive exploitation – whether that took the form of charter companies like the British East India Company raising taxes (so that India effectively paid for the wholesale exportation of its own goods to the UK), or colonial authorities taxing local populations to pay for the costs of their own occupation (and sending anything extra back to the metropole).
The second phase saw the establishment of ‘imperial governance’. The League of Nations, the club of imperial powers, set tax rules in the 1920s and 1930s that sought for the first time to systematically address the distribu…
UN TAX CONVENTION
Realising Human Rights In International Tax Treaty Law
Protests in both rich and poor countries have exposed one of the biggest challenges facing governmen…
THE BIG DEBATE
Big Debate: Is Tax Competition Beneficial Or Harmful To Global Economic Stability?
The Big Debate Our latest Big Debate asks: Is tax competition among countries beneficial or harmful to global economic stability?
With contribution from:
- The Organisation for Economic Co-operation and Development (OECD), Paris, France
- Daniel J Mitchell, Senior Fellow, The Cato Institute, USA
- Tove Maria Ryding, Policy and Advocacy Manager for Tax Justice at the European Network on Debt and Development (Eurodad)
- Luke Dorman, Researcher/Analyst, and Mark Pragnell, Managing Director, Pragmatix Advisory, UK
- Andrew Morriss, Texas A&M University, US
- Aparna Mathur, Visiting Fellow, FREOPP & Senior Research Manager in Economics, Amazon
Sector Research
The Role Of International Organisations In Global Tax Policy And Regulation
International organisations play a central role in global tax policy and regulation. With the growin…
Global Tax
The Case Against The OECD
Daniel J. Mitchell
Center for Freedom and Prosperity
The Paris-based Organisation for Economic Cooperation and Development (OECD) was created after World War II for the ostensible purpose of promoting more prosperity among western-oriented nations. It was seen as the economic version of NATO, as compared to the Soviet Bloc’s COMECON. For several decades, the bureaucracy played a benign role, generating data about member nations and producing reports about various issues.
In the last two decades of the century, the bureaucracy’s mission began to evolve, especially with regard to taxation. Ronald Reagan and Margaret Thatcher had implemented major reductions in personal and business tax rates. Those reforms were very good for the US and UK, boosting growth and making their respective economies more attractive for global investors, entrepreneurs, and job creators. Indeed, the US and UK tax reforms were so effective that other governments felt pressure to lower their tax rates. Tax competition was leading to lower tax rates and better policy, just as competition in the private sector leads to lower prices and more efficiency.
Global Tax
The Right To Develop: How Tax Policy Can Empower Or Undermine National Growth
Niekia Horton
Bahamas Financial Services Board
The 1986 Declaration on the Right to Development states that “the right to development is an inalienable human right by virtue of which every human person and all peoples are entitled to participate in, contribute to, and enjoy economic, social, cultural and political development, in which all human rights and fundamental freedoms can be fully realised."
Trusts and Foundations
Sector Research
Trusts And Foundations: The Interaction Between Offshore And Onshore
Trusts are increasingly used as an estate planning arrangement of choice in many civil law jurisdict…
Global Shifts: Geopolitics and IFCs
Geopolitics
Global Elections Of 2024: A Geopolitical Shift And Implications For IFCs
The global geopolitical landscape has undergone transformational shifts throughout 2024, and as we h…
Geopolitics
Vox Populi: How 2024’s Elections Have Precipitated A New Geopolitical Chapter
Paul Marshall
Pragmatix Advisory
Mark Pragnell
Pragmatix Advisory
Alcuin of York could have very well been writing about what we have seen in 2024 when he wrote to Charlemagne in 798 to express his dismay at how the voice of the people had been misinterpreted as the voice of God, and that “the riotousness of the crowd is always very close to madness”.
We have certainly seen a sharp shift towards populist politics in this year’s general elections across the G7 and beyond, but whether that shift leads to the prediction made by Alcuin remains to be seen. What we do know, though, is that the general elections this year are the latest point on a broader set of geopolitical changes that have been in train since the global financial crisis of 2007/08. International financial centres have little control over these changes, and have to continue to adapt and evolve if they are to thrive in what is emerging as a new world order.
Three Scenarios For The Future
In our 2022 report for BVI Finance, Beyond Globalisation, we set out three potential future global economic scenarios: weaker internationalism, the bloc economy, and new economic nationalism. Following the major elections in the United States, United Kingdom, Germany, and France, we’ve revisited our scenarios to see which is likely to predominate over the coming years, and what that could…
Cayman Islands Report 2025
Cayman Islands
Balancing Regulation and Innovation: Insights from CIMA’s Journey Since 1997
Cayman Islands Monetary Authority (CIMA)
In an exclusive interview, IFC Review speaks with the Cayman Islands Monetary Authority (CIMA) about recent regulatory developments and initiatives in the jurisdiction, considering the challenges and opportunities which lie ahead for Cayman’s financial services industry. IFC: Looking back at CIMA's journey since 1997, what do you think have been its defining achievements? As a primary supervisory authority for the financial services in the country, the Cayman Islands Monetary Authority (CIMA or ‘the Authority’) has played a pivotal role in establishing the Cayman Islands as one of the world’s most respected financial centres. Since its establishment, CIMA has significantly progressed as a sophisticated and mature supervisory authority by strengthening its regulatory framework, adopting the relevant international standards and supervisory best practices.
The Authority represents the Cayman Islands in various global forums, including the Financial Stability Board, the Caribbean Financial Action Task Force (CFATF), the Bank for International Settlements (BIS), the International Organisation of Securities Commissions (IOSCO), the International Association of Insurance Supervisors (IAIS), and the Group of International Financial Centre Supervisors (GIFCS). CIMA not only contributes to developing global standards for financial services regulation but also ensures that the jurisdiction adheres to these standards and best practices. To foster effective supervision and combat financial crime, CIMA has to date entered over 65 MMOUs/MOUs with international organisations and jurisdictions worldwide.
CIMA has implemented a range of supervisory tools and issued numerous policy measures to support and provide guidance to the industry stakeholders for complying with relevant legislative obligations. The Authority maintains close collaboration with th…
FinTech
Innovations And Impact Of Blockchain On The Financial Industry
An awakening is taking place as blockchain technologies are being implemented across almost every in…
Cayman Islands
Cayman Islands: In Pursuit Of Robust And Efficient Justice
The Cayman Islands offers many advantages to global families: the structures available are modern and flexible; the jurisdiction's legislation is continually updated in line with the market and evolving international rules; and the legal system is supported by a well-developed ecosystem of lawyers, professional fiduciaries, and a specialist judiciary. The jurisdiction is also tax-neutral and highly values privacy. These factors combine to offer an environment that fosters the growth of attractive and efficient structures for private clients for the longer term. But, most importantly, they also generate practical and robust solutions when conflict arises.
Trust Disputes
Cayman Islands trusts remain a popular way to preserve family assets and to control how, when, and in what amounts wealth is passed down to future generations. Settling assets on trust can serve important asset protection functions, and professional trustees can ensure that valuable family and business assets are protected for generations to come, even in the event of the all too common family breakdown among members of the beneficial class of the trust.
However, the role of trustee of a Cayman Islands trust is not one to be accepted on a whim. In a modern and highly regulated world, which now includes families who may have generated their wealth in novel ways and individuals with a greater propensity for litigation, the position can involve exposure to great risk and liability. Raw family wounds, generational rifts, and suspicions of wrongdoing are the bread and butter of trust disputes in the modern world and are on the rise.
Cayman Islands: The State Of ESG In 2024
In 2022, the Cayman Islands Government reported that it was embarking on development of an ESG polic…
Global Financial Centres Index
IFCs Drive Ahead In The Global Financial Centres Index
Mike Wardle
Chief Executive Officer, Z/Yen Group Limited
Almost 20 years ago, the Z/Yen Group began work to develop its research on the performance and competitiveness of financial centres. With the support of the City of London, this research developed into the Global Financial Centres Index (GFCI). This index, which has been published every six months since March 2007, provides a dynamic review of the comparative strengths of financial centres. In September 2024, Z/Yen published the 36th edition of the index.
The GFCI is a factor assessment index that combines two distinct sets of data to create a rating for financial centres:
Instrumental Factors: Quantitative measures focused on cities and countries provided by a wide range of organisations including the United Nations, OECD, and World Bank. A total of 143 instrumental factors were used in GFCI 36.
Financial Centre Assessments: Ratings of the competitiveness of financial centres and of their strength in FinTech provided by finance professionals across the world by means of an online questionnaire which has run continuously since 2007. For GFCI 36, Z/Yen used almost 40,000 assessments of centres provided by over 6,000 individual respondents to the survey.
A feature of the development of IFCs has been the growth in the number of financial centres working across borders. In 2007, GFCI 1 provided ratings for 46 financial centres, including just two IFCs – Cayman Islands and Bermuda. GFCI 36, published in September 2024, provides ratings for 121…
Bahamas
Bahamas Report 2024
The Bahamas has solidified its position as a leading international finance centre, navigating an ever-changing global financial landscape with exceptional resilience and forward-thinking strategies. As the global finance industry continues to evolve, the Bahamas continues to set itself apart, offering a seamless blend of regulatory expertise, technological innovation, and world-class financial services.
Niekia Horton, CEO and Executive Director of Bahamas Financial Services Board, showcases the Bahamas’ firm focus on being the Caribbean’s most complete and thriving financial centre, committed to upholding integrity in the financial system.
Antoine Bastian from Genesis Fund Services showcases the transformation of the Bahamas' financial services through legislative reforms, public-private partnerships, and innovative solutions like crypto regulation and carbon credits.
Lakera A. Russell and Dwayne Whylly from GSO Legal explore how AB Capital launched a mixed asset investment fund, utilizing the Bahamas' robust regulatory framework, skilled workforce, and innovative financial services.
Next, Dr Iyandra Smith Bryan from Quantfury Trading shares her advice to traditional financial institutions: to thrive amidst FinTech innovations, they must adapt, prioritize client needs, and embrace technological advancements.
The Bahamas leads in sustainable finance with robust ESG regulations, offerin…
Investment Funds
Europe
The Recast ELTIF: Opening Of Private Market Investments For Retail Investors In Europe
Conor Durkin
Pinsent Masons, Ireland
The European Long Term Investment Fund (ELTIF) is a specialised investment fund that provides investors with access to long-term investments such as private equity, infrastructure or real assets. An ELTIF is an alternative investment fund that is subject to the EU's Alternative Investments Fund Managers Directive (AIFMD). ELTIFs have the benefit of an EU marketing passport and they are unique as they are the only type of fund that may be marketed to both retail and professional investors.
An amending regulation to the European Long-Term Investment Funds Regulation (Revised ELTIF Regulation) applies from 10 January 2024. The aim of the Revised ELTIF Regulation is to encourage long-term investments in the real economy, which includes listed and unlisted private companies, infrastructure projects, and real estate that may require long-term capital investment. ELTIFs have the potential to address financing required for environmentally sustainable investments. The Revised ELTIF Regulation provides retail investors in the EU an opportunity to invest in private market investments and infrastructure funds, which to date was not available to the retail market.
ELTIFs In Ireland
The Central Bank of Ireland (Central Bank) has introduced a new chapter in its AIF Rulebook. The ELTIF chapter sets out the domestic supervisory and reporting requirements application to Irish-domiciled ELTIFs. From 11 March 2024, the Central Bank is open to applications for authorisation of closed-ended …
The Rise Of NAV Lending In Asia
The Rise Of NAV Lending In Asia
In recent years, the Asian private equity landscape has experienced significant growth and evolution…
Singapore As An Asian Fund Hub: The Growing Trend Of ‘Onshoring’
Traditionally, private funds have been established in ‘offshore’, tax neutral jurisdictions such as…
Family Offices
The Art Of The Family Office: Effective Oversight
The Art Of The Family Office: Effective Oversight
Family offices have proliferated in the 21st century. They have existed in some form or other for hundreds of years, but it is only during our lifetime that they have become an indispensable appurtenance of serious wealth. They have sprung up all over the world, sometimes small and low-key, sometimes large and public facing. They have been given significant mandates from the world’s wealthiest individuals who, with an eye on future and current generations, give the office a simple instruction: “Feed my sheep”.
Structuring And Jurisdictional Selection For Family Offices
The selection of jurisdiction is a critical decision for family offices serving globalised families,…
Citizenship & Residency
Citizenship and Residency
In the dynamic sphere of offshore finance, citizenship and residency programs have emerged as compelling strategies for individuals seeking greater global mobility, tax advantages, and enhanced personal security. These programs, offered by countries such as Greece, Dominica, Cayman Islands and St. Kitts and Nevis, provide affluent investors and their families with the opportunity to obtain second citizenship or residency through significant economic contributions.
This feature examines the benefits and intricacies of these programs, including the legal frameworks, financial commitments, and strategic advantages they offer. By exploring the burgeoning market for citizenship and residency by investment, we reveal how these initiatives facilitate greater global flexibility and a pathway to a secure, diversified lifestyle.
Investment Funds
Investment Funds
In the realm of offshore finance, investment funds represent a cornerstone for global investors seek…
Around The Jurisdictions
Trusts and Foundations
Trusts and Foundations
In the intricate world of offshore finance, trusts and foundations stand out as pivotal instruments…
Regulation And Policy
Republic Of Ireland: Examining The Individual Accountability Framework
Recognised as one of the most significant legislative reforms to affect the Irish financial sector i…
Regulation And Policy
A Decade of Regulatory Change For Caribbean IFCs
As waves of international initiatives have transformed the regulatory landscape for the major Caribb…
Transparency vs Privacy
Transparency vs Privacy
Delve into the intricate balance between transparency and privacy in the evolving landscape of international finance with our feature. We explore the pitfalls of imposing intrusive surveillance on cryptocurrencies, the shortcomings of anti-money laundering laws, and the UK's experience with beneficial ownership registers.
Uncover the shifting focus of global initiatives like FATF and the nuanced implications of Public Registers of Beneficial Ownership, and stay informed on key legislative reforms shaping the future of economic transparency.
Around The Jurisdictions
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