Jersey on EU 'tax haven' list

Monday 12 December 2016

Jersey has been included on a list of 28 countries the European Union could be scrutinizing next year as part of a clampdown on so-called tax havens, according to Bloomberg.

The media company says according to confidential documents, both Jersey and Guernsey have been listed for potential screening by the EU's Code of Conduct Group in 2017, on account of their zero tax rates.

It quotes the document as saying:

"The Code of Conduct group has a solid and proven experience in dealing with harmful tax regimes, including regimes of third countries. Assessments of these 28 countries could be undertaken autonomously by the Code of Conduct group with the assistance of the commission and experts in the review panels with a commitment to produce the outcomes in time for the final list.”

Amongst the other centres on the list are a string of Caribbean islands including Grenada, Dominica, St Kitts and Nevis.

But Geoff Cook, CEO of Jersey Finance, says the Island is in a strong position: “The latest formal announcements from the EU on its process to create a list of non-cooperative jurisdictions came on 8^th November where criteria were announced as to which countries they will invite for further dialogue. Those criteria haven’t changed and against them Jersey is well positioned. It is ahead of the curve on its commitment to the Common Reporting Standard, BEPS, country by country reporting and other transparency initiatives.

“As far as Jersey’s corporate tax system is concerned, it was thoroughly reviewed by the EU’s Code of Conduct Group on Business Taxation. Jersey is therefore in a really strong place and would be happy to engage with the EU should they ask us to, as and when they formally decide on a way forward.”

You can read the full Bloomberg article here.