Data found £5.9 billion worth of suspicious funds has been used to purchase UK properties through shell companies registered in Britain’s Overseas Territories.
The figures prompted Bournemouth East MP Tom Hayes to urge the Government to take immediate action against offshore tax havens linked to illicit finance and tax avoidance.
Speaking in a parliamentary debate on the British Overseas Territories, which he co-sponsored, the Labour MP called the situation a “scandal,” accusing some territories of “doing all they can to fall short” while continuing to facilitate” illicit finance and kleptocracy.”
Mr Hayes highlighted the British Virgin Islands (BVI) as the worst offender, with the territory playing a key role in enabling individuals and multinational corporations to avoid scrutiny and sidestep taxes.
Since 2016, £11.1 billion of questionable funds invested in over 1,600 UK properties has been identified, with more than half of these assets by value (£5.9bn) purchased using companies registered in UK Overseas Territories.
During the debate, Mr Hayes linked tax avoidance to the underfunding of essential public services.
He said: “Tax abuse and corruption go hand in hand. Leaked confidential documents dating back over a decade reveal a global spider’s web of secretive offshore tax havens. The super-rich and multinational corporations evade scrutiny and avoid paying their fair share of tax.”
He also spoke about his personal motivation for tackling financial secrecy, recalling his own childhood: “I grew up in poverty, with parents who I cared for unable to get a foot in the door of public services starved of resources. That is why I stood to be a Labour MP who campaigns against tax secrecy.”
Mr Hayes is calling on the Government to require British Overseas Territories to introduce transparency measures to prevent illicit finance and to hold an Anti-Corruption Summit to address tax avoidance.
He added: “Our determination as a Government to be on the side of working people will require decisive action towards tax secrecy and tax avoidance,” he said. “We can secure tax justice, and when we do, we will help the hungry to be fed and help families to know that politics is once again on their side.”
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