Richard Hay of London lawyers Stikeman Elliot has been in Jersey offering more of his well known opinion, which is always strongly pro-tax havens. As a member of the Society of Trust and Estate Practitioners, which is itself an organisation dedicated to the spread of the supply of the mechanisms of offshore abuse he was talking about Jersey's Tax Information Exchange Agreements and is reported by the Jersey Evening Post to have said Jersey could as a result of them:

end up with plenty of friends and no food.

This, he said, would happen because the Island was granting too many concessions. He continued:

We want red meat, not promises of future value. The Island already has considerable regulatory credibility and gravitas. This should be used to gain appropriate concessions.

He argued:

The current conditions would leave offshore centres stranded as second-class citizens. Clients would not regard favourably the idea that their files could be opened up for scrutiny in civil tax matters.

And most tellingly he went on to say Jersey should use the agreements to negotiate double tax relief and not just to get off blacklists.

My reply is simple and is a rare occasion when I might mimic Margaret Thatcher: it is to say No, No, No.

And the reason is as simple: Jersey does not have a 'considerable regulatory credibility and gravitas'. The place is riddled with tax evaded money to which it is clear the financial services industry turns a blind eye. As my previous posting showed, those who work in the sector want to deny the truth of this although the evidence is beyond question. And, if double tax reliefs were given more money would flow into the Island untaxed never to be seen again by any tax authority, anywhere.

So let's be clear, Jersey is not being persecuted, it's being prosecuted for participation in crime. And might I also suggest that those who promote the idea that cooperation in the pursuit of crime will only given for reward are on dangerous ground? To me that looks suspiciously like promoting living off the proceeds of crime.