Gorst: “It’s A Small Step To Address Concerns”

6th December 2017
Jersey’s government has been told by the EU it needs to address concerns with profits being registered in the island by international businesses.
It relates to a “perceived lack of legal substance requirements that could lead to profits being registered in Jersey that do not demonstrate real economic activity.”
Despite this, Jersey wasn’t included on an EU blacklist of so-called ‘tax havens, published yesterday.
The list of 17 countries not meeting EU tax standards include Bahrain, Panama and the United Arab Emirates.
The Chief Minister, Ian Gorst, says it reflects the island’s commitment to tax transparency.
Speaking to Channel 103, he says the island is already working to address their concerns:
“We know that there is only one issue the European Union have got concerns about. There are at least 40 other jurisdictions where they want to enter into dialogue and discussion about their particular regime. For us though, I think it is a very small step to be able to address their concerns – we’ve already started working on them.”
He also took to Twitter yesterday, to reject claims the island is on a so-called tax ‘grey list’.

Although the list is yet to be released, French Finance Minister Bruno Le Maire claims it lists 47 countries which require improvements to be fully compliant with the EU’s tax standards, but have committed to changing their tax rules.
The Chief Minister claims there is no list, and that the island is not among those countries:
“There is no grey list – let’s be clear! The European Union has said that we are a cooperative jurisdiction. We want to continue that cooperation around that area they have concerns relating to economic substance. Some of those measures we could take, which I think just strengthen our position – in some cases we are already doing in practice, but it maybe doesn’t say it in black and white, in any given law.”
Senator Gorst previously suggested ‘substance tests’ could be introduced in a response to the Paradise Papers leak last month when it was claimed tech giant Apple had shifted funds to Jersey after a crackdown on tax laws in Ireland.

Read: Paradise Papers: Apple Moved Cash To Jersey

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