January 22 2016
You’d expect the registered offices of 20,000 companies to occupy a significant financial district all of their own. But not when they base themselves in the Cayman Islands.
In fact, almost that many are listed in the Caribbean tax haven at just one quiet, five-story office block called Ugland House. Another 80,000 are registered elsewhere on the British Overseas Territory, meaning there are twice as many firms as inhabitants.
However, businesses don’t go there for the blue skies and glorious beaches – it’s because they don’t have to pay any tax. They may not be breaking the law, but legal tax avoidance – as opposed to illegal tax evasion – is thought to keep £20billion a year out of the British Treasury.