A tax haven or a tax shelter is considered to be a country or place normally referred to as a jurisdiction where the tax rates are low or non-existent. The tax structures of such jurisdictions help individuals and companies with tax planning. Other characteristics of tax haven include confidentiality, privacy and stable political system. Most tax havens have progressive legislation which ensures clients’ protection and privacy. Anguilla, a small flat limestone and coral island in the Caribbean has historically set very high standards as a tax haven. The Government of Anguilla along with the Financial Services Commission work together to make Anguilla one of the most organized, sound and up to date tax haven jurisdictions available. Tax haven Anguilla’s financial services sector offers the following services to clients: incorporation of International Business Companies, registration of Ordinary or Local Companies, registration of Limited Liability Companies, registration of trusts and offshore banks.

Anguilla as a tax haven helps clients find new and innovative ways to preserve wealth and increase opportunities and capital for companies. The registration of the different types of offshore companies and trusts in offshore tax haven Anguilla are vehicles which can be utilized in tax planning. The Government of Anguilla has passed and amended legislations which facilitate the incorporation of such entities and optimize the services offered to clients.

Tax shelter and tax haven Anguilla has passed legislation which makes the country available to all business companies that wish to be registered there as offshore companies. Zero taxation is applied to both local and offshore companies; zero or low taxation is a crucial characteristic of tax havens. Companies in Anguilla are not subjected to the payment of income tax, capital gains tax, or taxes on any interest, profits or dividends accumulated. Offshore companies in tax haven Anguilla also pay no stamp duty on transactions carried out.

Anguilla has no foreign exchange control regulation therefore companies can move profits, shares, dividends and interest and purchase foreign currency. There are laws in place in Anguilla as a tax haven whereby companies transferring large sums of money in and out of the country will have to make certain declarations.

The island has many qualities that have worked to its advantage as a tax haven. Anguilla has a very stable political environment and is part of Great Britain’s overseas territory but enjoys the status of being a self governed nation. Tax haven Anguilla is headed by a governor who is appointed by the Queen of England. The legal system is based on that of Britain. The judicial system of Anguilla forms part of the Eastern Caribbean Supreme Court. Political problems are rare in the country to which the government is devoted for integrity and the respect of its people.

The Confidentiality Ordinance first passed in Anguilla in 1981 has been amended over the years continues to protect clients of tax haven Anguilla, rendering the jurisdiction safer for clients as an offshore jurisdiction. This ordinance ensures that confidential information pertaining to clients is not passed on. There are strict punishments for a person who does not comply with the Act. According to the Act any professional who divulges information to persons who should not posses it or threatens to reveal such information has committed an offence. The punishment for such offence in tax haven Anguilla if committed by a professional, that individual is liable to pay a fine of US$10,000 or one (1) year in prison or both fines may be applied. If the offence was committed by a corporate body in Anguilla then that institution is liable to a fine of US$50,000.

Anguilla as a tax haven has over the years provided professional services to clients and continues to attract clients who will enjoy its tax free environment whilst at the same time are guaranteed confidentiality in a stable environment.