Jersey Not On Tax Blacklist
Jersey is not on a EU ‘tax haven’ blacklist published today.
The European Union have released a list of 17 countries that are on it, which include Bahrain, Panama and the United Arab Emirates.
Chief Minister Senator Ian Gorst says their communication and work with the EU has paid off.
“This outcome reflects the Island’s commitment to the highest standards of tax transparency and information exchange. We cooperated fully with the Code Group throughout the screening process, and have actively pursued a good neighbour policy in our relations with the EU. These positive interactions have borne fruit.
“I have every confidence that the Island will continue to be an international financial services centre of choice, working as a partner with the EU and other global organisations to meet the highest regulatory standards.”
Despite avoiding the blacklist, the island has been told to address concerns identified by the Code of Conduct Group by the end of 2018.
They relate to a” perceived lack of legal substance requirements that could lead to profits being registered in Jersey that do not demonstrate real economic activity.”
Mr Gorst says he will make sure that those concerns are worked on.
“I am pleased that Jersey has been rightly acknowledged for its cooperation in international tax transparency and compliance with BEPS requirements. We have committed to working with the Code Group on their concerns over economic substance and they have fully accepted that commitment. I look forward to entering into substantive dialogue in the New Year.
“Our discussions may include creating enhanced reporting obligations or changes to our legislation on economic substance. We have already begun the necessary preparations, having regard to the Code Group requirements and Jersey’s best interests. I am committed to ensuring that, working with the finance industry, this process will be completed by the end of 2018.”
The Chief Minister has also taken to Twitter, shutting down rumors that Jersey was on the ‘grey list’ of 47 countries that needed to undertake further legislative work in order to be fully compliant with the EU’s requirements:
Reports that Jersey is on a ‘Grey List’ are simply incorrect. #ECOFIN Conclusions acknowledge Jersey is a cooperative jurisdiction, has built a positive relationship with the EU, and is determined to meet its commitments by the end of 2018.
— Senator Ian Gorst (@Ian_Gorst) December 5, 2017