Oxfam's report named four UK-linked territories in its list of the top 15 tax havens worldwide.

The government of Bermuda has hit back at an Oxfam report that named the British overseas territory as the world's worst tax haven, claiming the charity group had made “substantial errors” in its claims.

In addition to Bermuda, three other UK-linked territories – the Cayman Islands, Jersey and the British Virgin Islands – appeared in Oxfam's list of the world's 15 worst corporate tax havens.

According to the charity, the 15 countries earned their place on the list “because they have adopted an aggressive set of policies to enable companies to minimise their tax bills”. 

Oxfam analysed key practices such as offering unfair and unproductive tax incentives and zero or extremely low corporate tax rates, as well as failure to cooperate with international processes to combat tax avoidance, the group said in a statement.

However, Bermuda's government has expressed its discontent at being ranked at the top of Oxfam's tax dodger chart.

“The Government of Bermuda notes with surprise and disappointment statements by Oxfam concerning tax and transparency in which Bermuda has been wrongly included,” said Bob Richards, Bermuda's minister of finance. He continued: “It should be emphasised too that the right to set a corporate tax rate is recognised by the United Nations as a sovereign right and is considered by Bermuda to be an essential contributor to its world-leading reinsurance centre, along with political stability, regulatory excellence and geographic independence.”

The UN estimates that tax dodging by multinationals costs poor countries at least $100 billion every year, Oxfam said in a statement, warning that by allowing anonymous shell companies to operate, tax havens are distorting the global economy and depriving other governments of resources.

According to Richards, shell companies “simply do not exist on the island, nor elsewhere in relation to corporations registered in Bermuda where continually update beneficial ownership information is fully available to relevant international authorities on request”.

Responding to Oxfam's notions regarding Bermuda's failure to cooperate with international tax avoidance processes, Richards said: “Bermuda is fully committed to all of the relevant global initiatives and scores extremely well on all internationally recognised tables.”

Bermuda has been left with a bitter taste in its mouth following the overall conclusions of Oxfam's report.

“More generally, Oxfam, directly and indirectly, appears simply to have ignored Bermuda’s internationally recognised role as a centre of corporate and tax transparency and compliance, and as a key ally in the fight against money-laundering and all criminal activities,” said Richards.