Jersey Expects EU Focus To Shift To Business Taxation

by Amanda Banks, Tax-News.com, London

29 January 2003

Speaking at a PricewaterhouseCoopers seminar last week, Jersey's Policy and Resources Committee President, Senator Frank Walker suggested that now some kind of agreement has been reached regarding the European Union's savings tax directive, the EU's focus will shift to its code of conduct on business taxation.

However, according to the Jersey Evening Post, which reported on the breakfast meeting, the Island has managed to transform its relationship with the European bloc on the issue of taxation from a somewhat tempestuous one to a non-confrontational partnership.

According to the local newspaper, the government of the United Kingdom is likely to be asked in March for evidence that Jersey is committed to rolling back its exempt and international business company structures. Senator Walker revealed, however, that the UK authorities have recently shown themselves to be very much in Jersey's corner:

'The UK has argued vigorously in favour of our negotiations with the EU and we are on a good basis to move forward,' he announced. Speaking with regard to the coming year, the P&R President admitted that:

'We are playing for high stakes, but so are all the other finance centres. Our long-term success is linked to long-term tax reform. It is our job to come up with a new fiscal structure.'

However, the JEP quoted Senator as observing that:

'Greater burden sharing will be inevitable. We will have to introduce other forms of taxation, some of them falling on the personal taxpayer. We will continue to place ourselves carefully, strategically.'

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