VI. CONCLUSION

properly scrutinising their affairs.341 A change to this arrangement should include transferring the responsibility for the OTs to the Cabinet Office and allowing their affairs to be subject to any parliamentary select committees that have an interest.342 Assigning them to the Cabinet Office may make their administration a matter of domestic concern and increase the frequency of extension of UK legislation to the OTs. In addition, allowing other select committees to scrutinise their affairs may raise the profile of issues of tax evasion and money laundering in the national consciousness.

This paper has addressed the problem of tax evasion for the British government, analysed various efforts to combat it and proposed a series of recommendations that amount to an ambitious multilateral strategy. Brexit marks a particularly crucial juncture in British politics for considering new strategies on tax evasion, as it will no longer be tied to the EU’s unanimous decision-making process. The paper has argued that a British strategy on tax evasion must be based on multilateralism, reciprocity, transparency and privacy, as well as pay attention to the historical role played by Britain in the development of offshore.

Britain’s history shows that it has to be careful in overstepping boundaries with its OTs and CDs. Yet, it has to take seriously the problem of tax evasion in its geographic vicinity. It is therefore imperative that it aims to secure agreement with the CDs on extending SAMLA (2018) to them through Orders in Council. However, Britain’s history also offers opportunities. The paper has recommended considering the commonwealth as a forum to engage with taxation matters. It is crucial to ensure representation of smaller states, as the case of the early efforts of the OECD highlights.

341 ibid., 17.

342 House of Commons Foreign Affairs Committee, Global Britain and the British Overseas Territories: Resetting the Relationship, 10–11.

The main problem in combatting taxation is lack of US reciprocity on AEI agreements. First, it is unclear how beneficial FATCA has been(see section II.I). Second, FATCA has led the US to refuse signing onto the CRS. Not only must the UK refrain from pursuing similar unilateral approaches, it is imperative that it draws on its special relationship with the US to push for US reciprocity. In this sense, the paper argues that Britain could take the lead in pushing for more multilateral cooperation on taxation matters in the form of a Global Asset Registry. However, such measures must consider concerns about privacy. It is imperative that the UK continues to raise this issue of privacy in OECD multilateral cooperation on taxation.

Tax evasion is a complicated and multi-faceted issue. It is, however, not beyond the reach of governments. There is a serious and ambitious strategy available. Brexit has made it possible for the British government to pursue it. It is up to the government to seize this opportunity.