Jersey Says It Will Announce OECD Position 'Next Week'

by Jason Gorringe, Tax-News.com, London

20 February 2002

Following reports that the British Government is putting pressure on Channel Island Jersey to commit to reforms demanded by the OECD, the island's government said on Tuesday that it planned to reveal its response next week.

John Mills, the island's most senior civil servant, told the Financial Times: "Our particular concern has been to get a level playing field which protects us against our businesses moving to Switzerland. The truth of the matter is, we have not concluded our discussions with the OECD, they are still running at the moment."

Mr Mills said Jersey's discussions with the organisation did not include the British government, and that that he expected Jersey's agreement with the OECD would be different in detail from what had been agreed for the Isle of Man, which satisfied the OECD of its intentions last year.

"Everyone's compliance is different, there are no commitments in this little game that are the same, they are all different, it is the nature of the beast. We are in the final stages of very difficult negotiations and decisions. You don't reveal your hand early on, you reveal it at the last minute."

The OECD has given the 28 countries remaining on its 'blacklist', which originally contained 35 names, until February 28 to agree to improve transparency and co-operate better with tax investigations from overseas. Early demands for listed countries to increase tax rates were dropped after opposition from the US, and it remains unclear whether there would be any consensus in the OECD for sanctions against non-complying countries. Even those countries which have signed 'commitment' letters have in some cases, for instance the Isle of Man, made changes conditional on compliance by other competing jurisdictions.

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