aimed at abolishing the Pacific nation’s reputation as an international tax haven, according to The Australian newspaper.
The Vanuatu Financial Services Commission said the country will replace its company law secrecy provisions — which allow for the creation of companies with hidden owners and undisclosed cash deposits — by the end of the year.
The move follows the arrest last week of 58-year-old Vanuatu-based Australian businessman Robert Agi, who is accused of masterminding a $93 million offshore tax scam involving more than 400 people.
Vanuatu Financial Services Commission member George Andrews, who declined to comment on any matters before the courts, said under proposed legislation, the Pacific nation will crack down on all Vanuatu businesses that provide foreigners with local tax-haven accounts.
“Our aim is to get genuine investors in and try to steer crooks out of Vanuatu,” Andrews told The Australian. “We’ve been associated with this stigma for a long time and we now aim to get away from being a tax haven. We want to develop into some form of financial hub getting away from this financial secrecy business.”
According to the Australian Taxation Office, about $4.7 billion flows from Australia to international tax havens each year, with about $331 million of that destined for Vanuatu.
Andrews said that under the new legislation, all Vanuatu businesses that provided company and trust formation services will be regulated, with those companies required to obtain a license to operate.
