Govt launches offshore finances investigation

Date: 3rd December 2008

Offshore financial centres are to be investigated by officials as part of an independent review announced at the pre-budget report.

Locations in the Isle of Man and the Channel Islands are among those to come under scrutiny, with taxation evasion being high on the government's list of priorities.

Chairman of the UK office of Promontory Financial Group, Michael Foot, will head the investigation, which will also closely examine the transparency of offshore services.

Paul Myners, financial services secretary, commented: "Offshore financial centres must play a responsible role in the global financial system.

"This review will take a serious and constructive look at the challenges these centres face in the current economic climate, and how they can best respond to these."

In a statement, the Treasury added that the territories would retain their "fiscal independence", including setting their own rates of taxation.

The review aims to have concluded its investigation in time for next year's budget announcement.