Jersey Urged To Carefully Consider Its Tax Options

by Robert Lee, Tax-News.com, London

28 October 2009

Jersey’s key stakeholders and industry bodies, drafted in to consider alternatives to the zero-ten regime need to take time to review all the options that are available, to ensure that the consultation ends with a decision on a regime that will not only comply with changing tax standards but also maintain the island’s international competitiveness, Jersey Finance has urged.

Geoff Cook, Chief Executive of Jersey Finance, says that there is no doubt that a tax neutral platform is an essential component of any effective regime.

“Clearly Jersey’s financial services industry expects that the States of Jersey will balance the desire to engage constructively with the ECOFIN Code of Conduct group, ensuring that an internationally competitive tax framework is in place. There is a wide range of internationally accepted fiscal frameworks, all of which exist in a number of major territories, and all options should be considered,” he observed.

Cook believes that any revised package should be in accordance with international norms, meet the requirements of the European Union's Code of Conduct group, and provide for the continuation of an internationally competitive framework.

“Any move to a simple ‘headline’ scheme would be premature," he argued. "Analysis and evaluation of all options and implications is absolutely vital."

"In the government’s consultations with key stakeholders, Jersey Finance will be urging that the necessary time is taken to carefully evaluate the measures, to ensure that a comprehensive and enduring tax package is devised which meets the needs of all parties and is capable of providing an enduring and competitive framework,” he concluded.

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