Oct 152009
Race is on to replace zero-10 » News » This Is Guernsey.
Guernsey minister says 10% corporation tax across the board is likely
The tax haven is dead
Now let’s have openness and transparency as well and lay the Guernsey secrecy jurisdiction to rest at the same time
25 Responses to “Race is on to replace zero-10”
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Richard
Have you ever done any detailed research on how many 0% tax regimes there are in the EU? You would find it instructive.
Who are they to tell other countries what is right and wrong?
Richard
good grief I agree with you.The EU has done us a favour -or so it wiil transpire in the long term. We can introduce a more equitable, balanced tax regime, and I am sure good quality tax compliant business wiil not flee as a consequence.
Guernsey never was a t
However Guernsey never was a ‘tax haven’, and thus I would strongly dispute your replacement classification of ‘secrecy jurisdiction’.
Eugene
What you think really does not matter
The rest of the world is absolutely sure you are
That’s all that does mater
Richard
Girrl
If you’re as clever as you claim (which i seriously doubt) you’d know 0% has absolutely nothing at all as to why this has not been agreed
So you’ve rather shot your credibility in the foot
Richard
@Richard Murphy
I see – Code Group can’t find a technical reason to find 0/10 harmful – dream up idea that 0% is aggressive in the EU sphere of influence – standard propaganda scapegoating machine starts to run – 0% is bad.
The UK must want something from the EU, so caves in.
The fact that EU members, Delaware blah di blah have 0% doesn’t matter to politicians.
Girrl
You seem to be willingly missing the point
0% tax is fine – so long as it is offered to all
But it isn’t
In which case there is a ring fence still
That is not fine
NB In 2003 it was agreed that there could be an exception for finance companies which could be charged 10% – this is what the 2003 in principle agreement was about. But the EU never agreed that the ring fence could be moved from tax on companies into tax on individuals but have exactly the same consequence – and that is why 0/10 as proposed after 2003 was always going to fail – as I predicted
The comparison with other states does not work for that reason – there is no point pursuing it – so why waste your time doing so? This is the problem – that is what has to go
Richard
Richard,
is it acceptable for you that the investment companies could be exempt under the coming new regime?
Am I missing the point?
Why not tax all Jersey companies at 10% except for those that qualify as collective investment funds?
Private clients can continue to use BVI companies the way they currently do.
Richard
So a zero rate of corporate tax, with no tax at all on profits either directly or indirectly, and with a 25% GST which raises £250m a year in Guernsey and £350m a year in Jersey, would be totally compliant with the EU Code of Conduct ?
How bizarre !
Billy
I’m not the one who counts
But no – of course it is not acceptable
Don’t be a silly billy
Richard
Girrl
Yes
But of course – you’ll also have a revolution…
And given that many tell me its the civil service in jersey at least who are the obstacle to progress this might be a matter of concern for some when reflecting on what to propose
Richard
Frank
BVI companies trading from jersey should be taxed in jersey
Don’t you know about tax residence?
If you don’t – it’s coming your way soon
Richard
I’ll try very hard to make a comment that Richard can’t post a “witty” riposte to. Assuming for a moment there is a flat 10% rate could you define “openness” and “transparency” please. You will obviously not be referring to a register of trusts etc because no such register exists anywhere else (including the UK which somehow escapes your attention in all this). So you must be referring to publication of company accounts and beneficial ownership of same – could you be clear please, for once, rather than use such bland terms. Or would you simply prefer the Channel Islands to be part of Hampshire…or maybe even France.
@Rupert
Rupert Dear
You have Richard in a corner – such fun. His answer will be sophistry an obfuscation.
The Girrl
Richard
As I’m sure you are aware, only a tiny percentage of companies adminstered out of Jersey are actually “trading”. The majority are investment holding companies, not active trading companies. Management and control and company residence are very simple to deal with. The board of directors would exercise such management and control from any one of a number of Switzerland, Dubai or Hong Kong or Singapore. Its fully accepted that such arrangements would have to stand up to full scrutiny but its definitely achievable. No need to even use BVI companies (under UK and thus EU influence). Companies incorporated in the Bahamas, Panama, Hong Kong, Singapore etc, resident in Switzerland or Dubai, with general administration, bookkeeping and accounting carried out in Jersey, are not in the slightest bit affected by the rate of corporate tax set for Jersey companies. Why do you think Gibraltar’s fiduciary sector has survived the introduction of a 10% corporate tax rate there?
There will always be somewhere outside of the EU’s control which has a zero rate of corporate tax and you yourself have confirmed that zero rate of tax is fine if its available to all. Management and control and residency is a question of fact and its obviously not difficult for large fiduciary operators to use their existing network of global offices differently than they do today. It would be only natural for general administration of companies to be outsourced to Jersey where such a high number of experienced administrators exist.
I think this thread has got a bit complicated for Richard.
Henry
As the only person who called this and the IoM right how might that be?
Please explain
Richard
Richard
If you really think you are the only person then you have a seriously high opinion of yourself. The reality is that the system was initially supported by the UK, and some of the EU. The word has changed since, and so has their view. Its not rocket science.
Henry
Henry
And who helped change the world
I’ll credit the Tax Justice Network and out friends
You won’t
But others do
And I’m happy if we played a small part
I won’t claim more – but no one could dispute some
Except those whose whole world view is being challenged by us, rather successfully
Richard
Richard,
I was referring to the seismic financial events of the last 2 years (which you will note have not been attributed to the Islands you so despise) – but hey if you want the TJN to take the blame for that be my guest.
Henry
Henry
I don’t think economics changed this
I think appreciation of the abuse of Jersey et al has
That existed before and is continuing after the crisis erupted
So not a good theory
But it’s yours – enjoy it!
Richard
Henry
Since you obviously know more about this than is apparent, perhaps you could explain where you get your assertions that the various specialities of the OFCs, of which Jersey and Guernsey are ‘rated highly’ by sociopathic people, are not considered to be a major factor in the general, devastating ph*ckwittery caused by the people you are representing by implication?
The fact is that if you say boo to this tax abuse goose, then the sound of the resultant, indignant hissing may almost drown out the rabid casted aspersions on mothers’ improprieties and penchants for gulags, uttered like religious memes, a gag response.
A Lamarckian regression of consciousness.
@Arnald
Arnald
So many long words make a Girrl’s head ache, but she does love an intellectual once in a while.
Tax abuse takes place in the UK, France, Germany, USA…ad nauseam. The criminals look for conducive routes via which to salt away the ill-gotten gains. We in Jersey can’t deny that some transits or stays here, and nor can any other sane country with a financial system.
The question these days is whether a country helps other countries to sort out their abusers – and the simple fact that you and Richard miss is that Jersey does.
There are reports out their stating clearly how the US company system, the Dutch system etc. are used by evaders; at orders of magnitude greater than anything that could pass through Jersey.
Get your targets right – tax evaders and their advisers, and stop claiming that we as a country are in the game.
Heck! Most of us living here in Guernsey were against zero 10. It was what our politcians deemed to be the correct route to go down – to satisfy the EU not to mention that wretched country /state called the UK!
Ok. So the finance industry went base over ass due to greed – started in the USA where it appeared EU/UK institutions were happy to invest regardless of risk? There are lots too many out there who will still get hefty bonuses for putting the world in c**t whilst us poor honest workers are beng taxed for it! Time for justice!