Jersey Finance Welcomes Decision On Corporate Tax

by Robert Lee, Tax-News.com, London

09 July 2004

The Jersey Government’s decision to approve a move to a zero rate of corporate tax has been welcomed by Jersey Finance, the representative body for the finance industry on the island.

Commenting on the decision, Chief Executive of Jersey Finance, Phil Austin noted: "There is a renewed mood of confidence in the finance industry and, with business levels on the increase, this decision is exactly the one we were looking for.”

Austin added that the move will convey the message to the international business community that the jurisdiction’s government is determined to protect its position internationally and give industry practitioners certainty and a secure basis on which to conduct future business.

Nevertheless, he acknowledged that proposed tax changes have not been universally popular amongst the island’s population.

“It is natural that a significant change in the way the Island raises its taxation should result in lively debate at home and inevitably attract some opposition. However, after a lengthy period of consultation followed by a constructive debate in the States Assembly, the Industry is pleased that the Government has signalled its support to the Finance Industry over the long term," he stated.

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