Pierre Horsfall Says Tax Talks With UK Now 'Cordial'

by Jason Gorringe, Tax-News.com, London

11 November 2002

Speaking to the Jersey Evening Post late last week, Policy and Resurces President, Senator Pierre Horsfall revealed that talks on tax reform between the Channel Island jurisdiction and the United Kingdom are now proceeding on 'a cordial basis'.

Earlier this year, Jersey was singled out by the UK government, which attempted - unsuccessfully - to make an example of the Island by trying to force it to agree to the EU's Savings Tax and Code of Business Conduct Directives within a very short time-frame.

However, speaking at the recent Ecofin meeting of European Union Finance Ministers, UK Chancellor, Gordon Brown praised: 'the clear signs of greater transparency, openness and...willingness to cooperate in the fight against tax evasion in the Isle of Man, Jersey, and Guernsey.'

Senator Harsfall told the JEP last week that: 'All the hard work with the UK Treasury has paid off, and Gordon Brown's speech reflects that'.

He informed the newspaper that the turning point in the relationship between the two countries had come during a meeting with Paymaster-General, Dawn Primarolo on the fringes of a finance meeting in London.

'My discussions with the Paymaster-General were a turning point,' he told the Jersey Evening Post, 'but by then our technical people had contributed their work, which led to a better understanding of our position and why some things are extremely difficult for us.'

The P&R chief also suggested that the recent signing of a tax information exchange agreement with the United States had done much to advance the Island's cause in the eyes of the UK and European Union:

'We have nailed our colours to the mast, and that's what people are looking for,' he explained.

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