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Offshore company formations have slowed

The war against tax evasion led by the US, Britain and Europe has slowed down the rate of offshore company formations.

 

So claims financial website iExpats.

 

In it's article it claims popular offshore destinations for wealthy individuals and companies including the Isle of Man, British Virgin Islands and Cayman Islands have seen incorporations tumble by 10% in a year.

 

The research has come from legal services consultancy the Appleby Group.

 

The firm attributes the fall in incorporations on uncertain global economic conditions – but it's stated the reality is more likely that the US Foreign Account Tax Compliant Act - or FATCA - and the British squeeze on crown dependencies and territories aiding tax avoidance are making taxpayers reconsider their options when moving offshore.

 

Some offshore financial jurisdictions did see an increase; Bermuda reported a 7% rise and Hong Kong saw 9% growth.

 

The Appleby Group reckons the British Virgin Islands is still the leading offshore corporate jurisdiction, especially for companies in technology and mining.

It's claimed 2013 looks to be a watershed year, as we see a return to a level of incorporations that is equivalent to pre-downturn numbers for offshore financial centres. 

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