RBS Nationalisation to end Channel Islands Tax Haven status

a seemingly informed comment in the papers is worth reading

Will Cyclops not only use his new power and opportunity to end those pesky offshore tax havens but also use the crisis to ‘rationalise’ the status of the channel Islands, with a wink from Brussels, the Nonce Island (Jersey) scandal providing extra cover?

The UK it is reported at the time of writing (Sunday October 12th) will take a major stake in the Royal Bank of Scotland (RBS) which also operates Royal Bank of Scotland International on the Isle of Man. Barclays, Lloyds TSB and HBOS are also candidates for government share ownership and likewise have operations in the Isle of Man, Jersey and Guernsey.

RBS controls NatWest and Isle of Man Bank. Isle of Man Bank in turn is the bank of Isle of Man Government being roughly the local equivalent of the Bank of England and which handles, redeems and issues the Island's banknotes.

Fiscal autonomy away from direct UK financial control and political influence is the key to the Island's autonomous status and the bedrock of the offshore Finance Sector in both the Isle of Man and Channel Islands.

Westminster may not be able to nationalise the RBS International and Isle of Man Bank without back to back legislation from Tynwald the Isle of Man's parliament, but it would be naive to think that a tremendous amount of political power over the Island's financial activity will not come about as a result.

The RBS will be a beggar and beggars cannot be choosers. The UK will have placemen on the RBS board. With so much UK taxpayers money being risked it is inevitable that the UK will turn its attention to the question of delinquent tax funds in the Island(s) some of which will probably have exited by now anyway.

This same scenario applies equally to Jersey and Guernsey and it is hard to see how the Islands can survive in their present constitutional status and relationship with the UK nor even hold on to their Finance Sectors as we have known them.

If the UK is forced to nationalise all UK banks as many seem to think will be inevitable then how can there ever be a viable offshore banking sector in the three Crown Dependencies?
Yes I would agree with your point of view.
Brit Governments and I would suspect Nue Labour do find the UK's Offshore Tax havens embarrassing.
I moved my cash from Jersey early last month, to where I live. I got just short of 67 Baht to the pound, as of Friday Pound was down to 56.
Mind you there is talk of devaluation to get Baht up to 39-40 to Yankee $.
Yes Jon, I suspect its only a matter of time before Broon launches a major attack on the CI, if he has not already started.
The CI have already caved in to EU and UK pressure over most banking conditions - e.g. withholding deemed income tax on interest, and passing account details to HMRC. Already you have to provide an increasing pile of evidence that you are a non-EU resident and thus not liable for tax.
People will just move their cash further afield. Wherever you choose to stash it, your cash is never more than a web site away.

Globalisation cannot be stopped. The days when UK governments could help themselves to most of their citizens' income are coming to an end.
I can't believe blue_sophist hasn't been in here rending his(tax free) shirt. :D

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