Anguilla is a British Overseas Territory in the Caribbean. A tiny island of about 15,000 inhabitants, it is responsible for its own finances. The outbreak of the financial crisis in 2007 hit Anguilla hard. Fewer tourists meant less government revenue. Needing to close a budget deficit, in 2011 the Island's government enacted its first form of income tax, a 3% flat tax, which it termed an "Interim Stabilization Levy." Anguilla has no other forms of direct taxation.