Separating Morality From Legality, And Why Yachting Has the
The British Overseas Territories are successful for, but not restricted to, the local economies from the territories concerned. Aside from yacht registration, many offer a wide range of corporate and financial services. It was regrettable that people saw yacht owners who choose to flag their vessel by having an offshore flag state being pulled into the debate within the ever popular pantomime of the evil Superyacht owner who hides his wealth and avoids paying tax.
Many from the these flag states are BOTs, like the British Virgin Islands and also the Caymans. They support seafarers and do vital work alongside other “Red Ensign” flags, however, you hear little about this.
The selection of flag state should be thought about probably the most important decisions in yacht ownership. It'll modify the regulations that the owner and vessel are susceptible to including during construction, inspection, regulatory compliance regimes and, obviously, taxation and liability protections. The benefits of registering a vessel under a recognised offshore flag state are evident and considerable.
A privately registered yacht with a non-EU owner could be imported in to the EU underneath the Temporary Admission regime, allowing 1 . 5 years of operation in EU waters without VAT. This really is legitimate tax avoidance. Who benefits? Not just the yacht owner but the economies of the Countries in europe, whether for ship repair, bunkering, victualling, restaurants, marinas and many support services.
It is vital to understand that these flag states offer high construction, safety and employment standards, protection of British maritime law, consular services and navy, in addition to commercial confidentiality.
I cannot personally think of a film in which a superyacht wasn't used as the lair or getaway vehicle for many disreputable character. Granted, playing the villain is truly the best acting role. The greater we can dispel this misleading association between yacht ownership and dodgy behaviour, then your more new individuals we can encourage into this fantastic and unique world.
We have to be clear concerning the differences from a Flag of Convenience , which our swarthy money laundering individual might use, and a reputable offshore flag state that is subject to the laws and regulations of recognised nations with stable legal and fiscal regimes.
As a case in point, it is estimated that 80 per cent of large yachts are flagged in the BOTs that make up the Red Ensign Group . The REG uses britain's MCA regulations for construction, safety and employment, with a positive effect on maritime security. Additionally, it protects the ethical welfare of mariners working aboard, the marine environment and resale worth of the vessel.
In today's heightened awareness of security threats, a commercially registered vessel over 500GT flagged within reputable offshore flag state such as the Caymans, must adhere to the ISPS code that sets the minimum security arrangements for ships, ports and governmental agencies. This prescribes to “detect security threats and take preventative measures against security incidents affecting ship or port facilities utilized in international trade”. With increased security risk, it's beneficial these superyachts are able to react to aid the federal government in detection and prevention of threats.
There is a great story to be told, but it's not repeated often enough. It is a story of high standards, increased safety and crew welfare. It is also a tale of wealth generation across Europe and beyond, and the enhancement of our own security.
Now, pressure is on for publically searchable beneficial ownership registers. No more will the wealthy enjoy any meaningful financial privacy, their security will be compromised and also the aims of General Data Protection Regulation will be entirely lost. How ridiculous!
We should not allow the tabloid press or leaks such as that of the Paradise Papers, obscure the larger picture. It is the duty famous us that are conscious of these benefits to leave there and tell that story.