Offshore experts applaud Commons debate on IFCs

22/07/2010

The International Finance Centre forum has praised the debate on offshore finance centres in the House of Commons this week, calling it an “informed, consistent and balanced” debate.

The debate was sponsored by Conservative MP, Mark Field, who argued that small international financial centres (IFCs) had suffered undue “political attacks and misguided criticism as major governments seek to understand the cause of the global financial crisis.”

He said it was crucial to not inaccurately blame small IFCs for recent financial shortcomings, and that they were invaluably important for businesses wishing to register and incorporate offshore.

Mr Field noted that many small IFCs offer stable, well-regulated and neutral jurisdictions through which to facilitate cross-border business, as well as causing limited impact on the UK tax base.

He welcomed the Government’s decision to cut corporation tax from 28 per cent in recognising the need to keep the UK competitive rather than attempting to defend high tax rates by criticising any tax competition.

Geoff Cook, Chief Executive of Jersey Finance, said it was a clear demonstration of the recognition of the importance of offshore finance to certain jurisdictions.

“It is also very encouraging that Mark Field MP outlined the beneficial role that IFCs play in the global economy and called for recognition of this at the G20 Summit in Korea," he said.

"This is further positive recognition of the high regulatory and supervisory standards that Jersey has," he added.