How to end offshore secrecy: a new proposal

Offshore secrecy is a problem. Tax avoidance, tax evasion, sanctions evasion, drug cartels, corruption, questionable government contracts – all have been enabled by offshore companies whose ownership and accounts are hidden from public view.

We believe everyone would benefit if all companies, everywhere in the world, had to publish basic information: their shareholders, directors, beneficial owners and accounts. But previous attempts to persuade or force this result have stalled.

We’re presenting an alternative. Companies across the world would be invited to publish their basic corporate information on Companies House. Companies that wouldn’t be subject to a 10% “transparency levy” on all payments received from the UK, and barred from public sector procurement contracts. Companies from countries with fully open corporate registers would be entirely exempt.

The UK could introduce the transparency levy unilaterally. We’d anticipated it would then be implemented by many other countries – OECD members and developing countries alike. We’d see a new wave of corporate transparency. All it takes is for the UK to take the first step.

The full proposal is here.