Jersey Could Benefit From EU Tax Pressure, Says JFSC Chief

by Jason Gorringe, Tax-News.com, London

10 September 2002

Speaking out against the general perception of the European Union's Code of Conduct as a threat to business, chairman of the Jersey Financial Services Commission, Colin Powell argued that the recent EU pressure could have the opposite effect.

Reporting on last week's European meeting of the International Lawyers Network, held on the Island, the Jersey Evening Post quoted Mr Powell as observing that in the wake of the Isle of Man's surprise zero tax announcement: 'The EU has had to accept that jurisdictions that offer a flat rate of tax are not, by definition discriminatory and we can take advantage of this.'

'If the Island can find a suitable rate of tax, whether it be zero or 10% or 20%, then we could become even more attractive to business.'

Mr Powell, a former States economic advisor, admitted last week that there would need to be changes in the mix of business in Jersey, but told the assembled international legal professionals that: 'I'm sure the Island will adapt'.

'In fact, the problem is not whether the Island complies with international standards, because if we have a level playing field we are happy to do so, but rather whether we will have enough manpower, not only to cope with new business but also to develop new business on the Island,' the Jersey Evening Post quoted the JFSC chief as musing.

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