TCSP's and the Risk of Facilitation of Tax Evasion Crimes

Trust and Company Service Provides (TCSPs)  play a key role in the global economy as financial intermediaries, providing an important link between financial institutions and many of their customers. They provide often invaluable assistance to clients in the management of their financial affairs and can therefore significantly impact transactional flows through the financial system.

TCSPs are often involved in some way in the establishment and administration of most legal persons and arrangements; and accordingly in many jurisdictions they play a key role as the gatekeepers for the financial sector. Gibraltar has historically always had a strong fiduciary sector. 

As third-parties associated to companies and legal structures, TCSPs are exposed to various risks including potential facilitation of Tax Evasion Crimes. TCSPs services can enable concealment of beneficial ownership or be used to facilitate the movement of money to offshore jurisdictions. The possibilities to create complex structures and enhance anonymity makes a corporate structure an attractive tool for criminals, and
their use is regularly identified within money laundering investigations and other financial crimes. 

In Gibraltar TCSPs are well regulated and there is no evidence of those service providers being misused to perpetrate financial crimes. Having said that, there is the risk that you, as a TCSP, might be inadvertently providing services to companies and/or legal structures that could be considered to be facilitation of Tax Evasion or similar crimes. Therefore, it is crucial to understand what would be considered a Facilitation of Tax Evasion as well as other tax crimes and what measures TCSPs need to implement in order to ensure that they for example don't perform any concealment of ownership and don't facilitate tax evasion. Important to note, is that in such cases, not knowing the laws and the respective implications is not a mechanism of defence.

GACO is happy to inform you that we have created together with GATA a bespoke face-to-face event that will provide specific training and insights for local TCSPs around this important topic. 

GACO & GATA have engaged a local Specialist - Grahame Jackson - to deliver this presentation as well as to moderate an open discussion at the end of the event around this interesting and very important subject in full compliance with "Chatham House Rules". 

Information on the speaker

Grahame has been working and living in Gibraltar for 22 years. Over that time he has been a company administrator, worked in the funds sector and been a tax specialist. He is the leader of the Tax Advisory team at Hassans and specialises in international tax information exchange, corporate taxation, and Gibraltar tax in general. He has advised governments and large corporates as well as HNWIs, TCSPs and local banks. He believes that greater tax knowledge through the fiduciary and allied industries is the best way to protect Gibraltar’s reputation as a thriving fiduciary jurisdiction. He publishes frequently in internationally respected journals co-authored “A Practitioners Guide to International Tax Information Exchange Regimes” with Harriet Brown (also of Hassans and Old Square tax Chambers) and recently published “On the Principles of Gibraltar Taxation” co-edited with Isaac Levy. He has a wife, four kids two dogs and a cat.

Date & Time: 2nd October 2024; 12.00 - 13.30hrs
Location: Hassans Board Room
Attendees: TCSPs only
Fee: £25