Study Highlights BVI's Role As An Investment Conduit
by Mike Godfrey, Lowtax.net, Washington
22 June, 2017
The British Virgin Islands enables global investment and trade that supports more than two million jobs worldwide, says a new report.
The report - Creating Value: The BVI's Global Contribution - was prepared by Capital Economics, an independent economics consultancy firm, and analyzes the British Virgin Islands' global economic contribution.
It finds the territory facilitates over USD1.5 trillion of cross-border investment flows, equivalent to two percent of global GDP. It says that over USD15bn of tax revenues are generated annually for governments around the world via investment facilitated by the British Virgin Islands and from resultant economic activity.
The UK (USD3.9bn), the EU excluding UK (USD4.2bn), and China and Hong Kong (USD2.1bn) are the largest beneficiaries of this tax generation, the report claims.
Lorna Smith of BVI Finance, the territory's financial services promotion agency, said: "The results of this study clearly demonstrate the significant contribution the British Virgin Islands makes to the global economy. Not only does the British Virgin Islands enable cross border trade and investment, it also supports millions of jobs and generates substantial tax receipts for governments globally. This brings tangible benefits to the lives of employees, voters, families and businesspeople around the world."
Smith continued: "The report is unequivocal: contrary to some accusations, the British Virgin Islands is a sound and reliable center which has worked harder than many bigger nations to meet international standards, and is not a tax haven. This independent and authoritative report is equally clear in stating that the British Virgin Islands is not a center for corporate profit shifting. This helps clarify once and for all some of the inaccuracies and misunderstanding about what the British Virgin Islands is and the valuable role it plays in the global economy."
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