Jersey Hangs Fire On Business Tax Changes

by Jason Gorringe, Tax-News.com, London

02 September 2002

The Jersey Evening Post reported late last week that any large-scale changes to the jurisdiction's corporate tax regime are unlikely to take place until after the outcome of the European Union's tax reform package is known, and the States Elections have been held.

Finance and Economics committee President, Senator Frank Walker, explained the reasoning behind the decision to postpone any major changes on Thursday:

'Until we know more we cannot come up with an overall fiscal structure,' he told the newspaper. 'There is a huge amount of research going on at the moment. It will not be a free lunch for the business community - tax will have to be generated in other forms.'

However, Senator Walker warned that the possibility of introducing a sales tax on the Island could not be ruled out in the future.

The JEP revealed that although no major tax changes are scheduled to take place until next year, Jersey businesses will become subject to a new vehicle registration duty, increases in taxation on petrol and property, and a tax on benefits in kind, if proposals currently in the pipeline are approved.

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