http://www.taxresearch.org.uk/Blog/2008/04/21/putting-the-record-straight/ Richard Murphy on tax and corporate accountability Wed, 03 Dec 2008 06:31:38 +0000 http://wordpress.org/?v=2.6 http://www.taxresearch.org.uk/Blog/2008/04/21/putting-the-record-straight/#comment-420241 John Christensen Tue, 22 Apr 2008 08:25:17 +0000 http://www.taxresearch.org.uk/Blog/2008/04/21/putting-the-record-straight/#comment-420241 Terry Le Sueur can carry part, but not all, of the blame for the island's predicament. Equally culpable are former Finance and Economics Committee presidents Reg Jeune, Pierre Horsfall and Frank Walker, all of whom promoted rapid growth of Jersey's tax haven activities and ignored warnings of the crowding-out effect. Like Le Sueur, Jeune, Horsfall and Walker had conflicts of interest arising from bank directorships and legal partnerships (in the case of Jeune), and took the attitude of 'apres moi le deluge'. In too many cases their advisers were weak and complicit. Their disregard for the harm caused to poor people by tax havens like Jersey is made all the more disgraceful by the way in which Jeune and Le Sueur have publicly paraded their claims to hold Christian values. I agree with your point about active compliance, but let's face the truth here: if banks, trust companies and company administrators were to comply with the SARS regime they would pretty soon have no clients left in Jersey since tax evasion is a major reason for using the island's facilities. Likewise if the ring fences introduced into the 0/10 regime are struck down, the opportunities for using non-resident entities for avoidance would be removed, leaving the island's avoidance industry high and dry. Terry Le Sueur can carry part, but not all, of the blame for the island’s predicament. Equally culpable are former Finance and Economics Committee presidents Reg Jeune, Pierre Horsfall and Frank Walker, all of whom promoted rapid growth of Jersey’s tax haven activities and ignored warnings of the crowding-out effect. Like Le Sueur, Jeune, Horsfall and Walker had conflicts of interest arising from bank directorships and legal partnerships (in the case of Jeune), and took the attitude of ‘apres moi le deluge’. In too many cases their advisers were weak and complicit. Their disregard for the harm caused to poor people by tax havens like Jersey is made all the more disgraceful by the way in which Jeune and Le Sueur have publicly paraded their claims to hold Christian values.
I agree with your point about active compliance, but let’s face the truth here: if banks, trust companies and company administrators were to comply with the SARS regime they would pretty soon have no clients left in Jersey since tax evasion is a major reason for using the island’s facilities. Likewise if the ring fences introduced into the 0/10 regime are struck down, the opportunities for using non-resident entities for avoidance would be removed, leaving the island’s avoidance industry high and dry.

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