A report for the British government last month said Anguilla and other overseas UK territories must find new methods of raising taxes as they battle the economic crisis.
Whereas the report does not specify the action that should be taken in every case, but it could include raising significant extra revenue through income tax, value-added taxes, a consumption tax and corporation tax. The report further states that many of the territories were running out of money as tourism and finance withered away amid the worldwide economic meltdown.
The Turks and Caicos have already exhausted their government reserves, while in Anguilla reserves are forecast to run dry by the end of the year, the report added.
The British Overseas Territories and Crown Dependencies have sovereignty over their own tax affairs. Many will fiercely defend their reputation as low-tax economies.
The Minister of Finance, the Hon. Victor F. Banks confirmed that the British government will fund the “study”; and has suggested that any recommended tax changes would depend on wide public “consultation”… first.