Jump to content
Manx Forums, Live Chat, Blogs & Classifieds for the Isle of Man
Grounds Keeper Willy

Public beneficial ownership register to be introduced

Recommended Posts

Just reading the Richard Murphy blog it looks more subtle than the headline would suggest 

The crown dependencies will "take steps towards ...". Also seems to only apply to companies and not trusts.

We are not doomed after all (yet)

Share this post


Link to post
Share on other sites
16 minutes ago, Rog said:

Dream on.  HMG would not permit that to happen. 

Whatever it is will be agreed with HMG in advance before it sees the light of day as with everything else important. It isn't us saying to them: "We're doing this." or even asking: "Is this OK?" It's more them "helpfully advising": "Perhaps this would be beneficial for you." It's a very well understood relationship. If HMG thought that our ambiguous constitutional position did not benefit the UK, we would not be in it for sure.

Share this post


Link to post
Share on other sites

What I'd like to know is, would the Beneficial Ownership register also need to include ultimate beneficial owner in another jurisdiction, or only the immediate beneficial owner as relates to the Isle of Man?

  • Like 1

Share this post


Link to post
Share on other sites
6 minutes ago, Rushen Spy said:

What I'd like to know is, would the Beneficial Ownership register also need to include ultimate beneficial owner in another jurisdiction, or only the immediate beneficial owner as relates to the Isle of Man?

How would we know? How could we be sure of the authenticity if we thought we knew?

Share this post


Link to post
Share on other sites
2 hours ago, Non-Believer said:

I don't think it's much to do with this administration. It's just another block out of the "Independent, self-governing nation" bollocks that is maintained to keep the local establishment in jobs and egos.

We do as we are told, simple as. And if that means making public who beneficiaries are, then we'll be told to do it. 

We don't even get a say in or know who uses our "independent" airspace either. It's all a very, very expensive sham.

Quite so, but I still don't have the confidence that our Chief Minister offers the most robust defence of the Island and is simply a nodding dog when it comes to the UK.

Share this post


Link to post
Share on other sites
5 minutes ago, woolley said:

How would we know? How could we be sure of the authenticity if we thought we knew?

Because Isle of Man CSPs are required by the regulations to hold that information and maintain up-to-date documentation to evidence it in the event of auditing.

Share this post


Link to post
Share on other sites

As ever it's worth looking at the actual wording of the joint statement[1]:

Quote

Joint commitment by Guernsey, Jersey and the Isle of Man

Registers of beneficial ownership of companies

1. The Crown Dependencies (Guernsey, the Isle of Man and Jersey) (‘we’) have a longstanding, and independently verified, track record of meeting international standards. We are proud of our global leadership in tax cooperation, transparency and in combatting money laundering and countering the financing of terrorism.

2. Through our work with the EU, the OECD and with other international partners, we meet international standards in respect of transparency of beneficial ownership information. As responsible jurisdictions, we have a proven good neighbour policy with respect to cooperation with the EU in matters relating to taxation, fighting financial crime and countering the financing of terrorism.

3. It is in our strategic interests and our standing as responsible jurisdictions to commit to further develop the accessibility and transparency of our register of beneficial ownership for companies consistent with the approach being adopted by the EU. We will do so in a way that is in line with the principles of the EU fifth Anti-Money Laundering Directive (5th AMLD) within a timeframe that we consider deliverable.

4. We are committed to the following staged approach:

a) During 2021, to work collaboratively with the EU on the interconnection of the Islands’ central registers of the beneficial ownership of companies with the registers in the EU. This is part of existing political commitments made by each of us to the EU to ensure that, on a reciprocal basis, legal and beneficial ownership information can be shared with EU designated competent authorities and Financial Intelligence Units (FIUs).

b) To enable access to our central registers of beneficial ownership of companies to obliged entities for due diligence purposes as soon as reasonably practicable following this interconnection referenced in (a) above and, in any event, before the end of 2022.

c) The EU is due to publish an Implementation Review of the 5th AMLD in January 2022. Within 12 months of that publication, we will each bring forward to our own parliament legislative proposals to establish public access to beneficial ownership data of companies held on a central register, in line with the principles of the EU’s 5th AMLD.

5. In order to develop and implement the legislation referenced in 4(c) above, we will be informed by global best practice including the progress being made in EU Member States to introduce processes to verify, vet and regulate trust and company service providers and the submission of beneficial ownership information.

June 2019 

As you can see most of it is boilerplate blather, but what they are actually saying is that they won't promise to do anything till 2023 (sorry "before the end of 2022") and even that is the sort of limited access ("obliged entities for due diligence purposes") that they were implying they gave anyway.  Any decision as to public access is actually put off to 2022 when they will be forced to comply with whatever the EU comes up with anyway.  And again nothing is promised before 2023.

The date of 2023 is significant because that is the latest date that even the UK government is promising public registers for the BOTs by and it's very possible that the House of Commons will insist on 2020 as it told the government to implement,  as the Guardian article of the latest announcement reminds us:

Quote

Last year Hodge and Mitchell ran a successful backbench campaign to force the UK’s overseas territories, including the Cayman Islands and the British Virgin Islands, to introduce public registers by 2020.

However, this year it emerged that the British government planned to interpret the amendment to require the introduction of the registers by 2023 if the territories failed to do so themselves by 2020.

So all that is happening here is that CDs are reluctantly saying they will jump at the same time as the last possible date for the BOTs. If everyone else gets their act together.

As @bankerboy implies above, a lot of the business that is done on the Island now relates to Trusts anyway, which seem to be untouched by this.

 

[1]  A download I'm afraid.  Why do 'PR professionals do this, by the way?  I could understand it for some vast dataset that they don't want a lot of people accessing at once, but a one page pdf?  For anyone wanting the words of wisdom of the three Chief Ministers, the link comes from the usual stilted and old-fashioned press release.

Share this post


Link to post
Share on other sites
3 minutes ago, Roger Mexico said:

As @bankerboy implies above, a lot of the business that is done on the Island now relates to Trusts anyway, which seem to be untouched by this.

 

What if the ultimate beneficial owner owns the company via a trust?

Share this post


Link to post
Share on other sites
4 minutes ago, Rushen Spy said:

Because Isle of Man CSPs are required by the regulations to hold that information and maintain up-to-date documentation to evidence it in the event of auditing.

Only as good as the information coming from other jurisdictions though, in the case of foreign registered corporate entities.

  • Like 1

Share this post


Link to post
Share on other sites
1 minute ago, woolley said:

Only as good as the information coming from other jurisdictions though, in the case of foreign registered corporate entities.

The "information" from other jurisdictions has to be evidenced with documentation. The CSPs here don't just take their word for information; it has to be verified.

 

Share this post


Link to post
Share on other sites
30 minutes ago, NoTail said:

Just reading the Richard Murphy blog it looks more subtle than the headline would suggest 

The crown dependencies will "take steps towards ...". Also seems to only apply to companies and not trusts.

We are not doomed after all (yet)

  • 2021: The dependencies plan to merge their registers with their EU equivalents 
  • 2022: Businesses will be given access in order to do their "due diligence"
  • 2023: The governments of Guernsey, Jersey and the Isle of Man will bring legislation before their parliaments to make their registers publicly available

     

Share this post


Link to post
Share on other sites
1 minute ago, MrPB said:
  • 2021: The dependencies plan to merge their registers with their EU equivalents 
  • 2022: Businesses will be given access in order to do their "due diligence"
  • 2023: The governments of Guernsey, Jersey and the Isle of Man will bring legislation before their parliaments to make their registers publicly available

     

These things tend to draw out over many years. As a case in point, look at the long process that has ensued from the EU declaring the IOM resident/non-resident company regime harmful in the late 90s. IOM announced zero/10 then took years to implement. Then implemented with DPC which was also found harmful. Then brought in ARI which was also declared harmful. Promised to abolish ARI and finally did so in 2012 with unspecified anti-avoidance measures to combat abuse. So we are almost 20 years on in this wrangle but we still have zero tax for non-resident companies and their members. It's an ongoing game.

  • Like 1
  • Thanks 1

Share this post


Link to post
Share on other sites
1 hour ago, Rushen Spy said:

What I'd like to know is, would the Beneficial Ownership register also need to include ultimate beneficial owner in another jurisdiction, or only the immediate beneficial owner as relates to the Isle of Man?

Ultimate so if the person at the top is American or from Peru then that’s who’s name is recorded. 

Share this post


Link to post
Share on other sites
6 hours ago, The Phantom said:

Is this anything to do with the alleged new VAT windfall I've heard mutterings about? 

 

This is the second or third time this has been mooted on these boards but nobody seems to be able to flesh it out.

Though I suppose if the VAT share had been increased they'd want to keep it quiet.

Firstly to keep Richard Murphy and Co. in blissful ignorance. And secondly to keep the local plebs off the streets who might otherwise be asking why they're still being personally taxed to the hilts whilst IoMG has started creaming it in from elsewhere again?

  • Like 1

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...