13/04/2016

The wealthy should bring their assets back onshore

In an article in the Financial Times published on 13 April, Sheikh Mohamed Bin Issa Al Jaber called for wealthy people to bring their assets back onshore.

The article explained that Sheikh Mohamed was urging his fellow billionaires to bring their wealth back onshore. Sheikh Mohamed wound up his offshore trusts and brought his money onshore some years ago and now holds just a few remaining offshore assets.

Sheikh Mohamed said, “For me it makes business sense” to have his assets in the UK, following the unprecedented leak of documents from the Panamanian law firm Mossack Fonseca which highlighted the widespread use of offshore trusts to house wealth.

“I think a lot of people will follow,” Sheikh Mohamed added. “Here [in the UK] you have the power of the state behind you and a guarantee of stable systems, as well as the rule of law and good governance.”

Sheikh Mohamed, the founder and chief executive of MBI Group, said there was also a compelling strategic reason for his shift. Consolidating assets in London provides a “competitive advantage”, he said. “I think it is cheaper in the long term. My people think it is a saving” he added.

He made it clear that for him it was important to be seen acting within the spirit and letter of the law, especially his track record of activism in the Gulf, where he has frequently called for improved taxation. “I have been demanding a tax regime within the Gulf states for the past 15 years, something my business friends say I am crazy to do. But it is one way to save the state and bring rewards to you and your children. It galvanises against corruption — and is the way to accountability.”

Sheikh Mohamed’s view was supported by Richard Ross, philanthropist and chairman of the Rosetrees Trust, which funds medical research. “No one likes paying tax but it is a necessary evil,” he said. “It took 30 years for the antismoking campaign to become really effective. Surely guidance to lawyers, accountants and bankers should stop those wanting to pay no tax in the foreseeable future.”

One British billionaire, who wished to remain anonymous, said he had never sought to place his assets offshore. “I am of the view if you are lucky enough to be born in Britain then you should pay your taxes in Britain, and it should not be an option,” he said. “Lawmakers need to say that you can’t go to places like Monaco or you can’t do this if you’re born in Britain. End of story.”


http://www.ft.com/cms/s/0/9ec967f0-00a2-11e6-99cb-83242733f755.html

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