Wednesday 12 August 2020
Select a region

New guidance issued on corona virus and economic substance

New guidance issued on corona virus and economic substance

Monday 16 March 2020

New guidance issued on corona virus and economic substance


Companies forced to hold virtual board meetings in light of the corona virus pandemic will not be deemed to have breached economic substance legislation, the Comptroller of Revenue has said.

Revenue Jersey has issued new guidance to reassure companies, which have had to adjust their operating practices to manage the corona virus outbreak.

Where a company incorporated in another jurisdiction has been tax resident on the basis of control and management in Jersey, and the Comptroller considers that any changes dictated by the corona virus are temporary, this will not disturb the determination of corporate tax residence from that prevailing before this outbreak.

This treatment will only apply to adjustments to the normal operating practices, and to the extent required to mitigate the threats from the outbreak.

Commenting on the guidance, Ogier Group Partner Emily Haithwaite said it reflected "a sensible and proportionate response" by the local tax authorities, adding it will enable 'business as usual' in what she described as extraordinary circumstances. 

“We would reiterate the importance of ensuring that evidence of board meetings is properly documented in the usual way, even (or, in particular) where meetings are held virtually," she added.

"It is also worth noting that the guidance is intended to acknowledge that temporary adjustments may need to be adopted to the normal operating procedures which are expected of companies which are subject to the economic substance rules, and only to the extent required to mitigate the threats from the outbreak of corona virus.”

Click here to see the guidance issued by Revenue Jersey. 

Sign up to newsletter

 

Comments

Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.

Once your comment has been submitted, it won’t appear immediately. There is no need to submit it more than once. Comments are published at the discretion of Bailiwick Publishing, and will include your username.

There are no comments for this article.

To place a comment please login

You have landed on the Bailiwick Express website, however it appears you are based in . Would you like to stay on the site, or visit the site?