Jersey – a party to massive taxation fraud

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Marty Sullivan at TaxAnalysts is one of the best tax thinkers in the world. He's doing a new project on offshore.

His latest report is on Jersey. His conclusion is stark:

At the end of 2006, there were $491.6 billion of assets in the Jersey financial sector beneficially owned by non-Jersey individuals who were likely to be illegally avoiding tax on those assets in their home jurisdictions. Rapid growth of bank deposits and mutual funds shares in the first half of 2007 easily pushes the total above $500 billion.

Now let's suppose that the rate of return on this sum is 7%. And that the tax rate should be at least 30%. Jersey costs the world over $10 billion a year in evaded tax.

By itself that's 20% of the sum needed to pay for achievement of the Millennium Development Goals.

What is clear is this: the economy of Jersey is built on the basis of fraud, because that's what tax evasion is. And the cost is to the poor people of the world.

I hope this preys on the conscience of Terry Le Sueur and his colleagues in the Jersey government.