Unsurprisingly the EU's Economic and Financial Affairs Committee confirmed on Tuesday that Jersey and the Isle of Man had tax systems that did not comply with the EU Code of Conduct on Business Taxation.
Now we await news from the Code Group on their reaction to Jersey and the Isle of Man withdrawing their deemed distribution rules.
And no, I have not heard yet.
But I suspect they'll want more time to examine the detail. I would. The devil was in the detail last time. They're not going to be caught out again, I hope.
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Non compliance with EU codes of conduct indeed …
Who would have thought it!
Er … what’s a code of conduct?
It’s reported in today’s Guernsey Press (not online) that a statement was made yesterday by UK Treasury, stating that the Code group have deemed the regime harmful. The Press state “even after the last minute changes to deemmed distribution” the UK repeated its original stance that zero ten should be revised and there would be ongoing scrutiny by the Uk Tsy and the EU CoC.
I think this updates the ecofin paper. The Press is the only source I could find so far, so maybe, maybe not, but it would be a right kick in the teeth for an increasingly swivel-eyed Jersey team.
Well done Guernsey!
@Arnald
I am sure that is true
The Code Group can only look at legislation
Jersey and the IoM are still in breach and the reforms are not known
And I bet the reforms will bring in new Code breaches….
Luckily for the Isle of Man, the Treasury Minister has dismissed that report… http://www.manxradio.com/newsread.aspx?id=50375 …so it’s all okay for the Isle of Man’s clever plan then!!! 😆
Richard,
I don’t know if you caught Manx Radio this morning however it appears that IOM Government already have a plan in mind for it’s alternative to ARI and guess what…..0/10 stays and it’s business a usual as we already have in place legislation for anti-avoidance to replace ARI.
If you want a copy of the audio clip, e-mail me and I wil send it to you, some quite interesting stuff contained therein.
Any anti-avoidance introduced by the Islands to replace ARI would be harmful as while it would reduce use of corporate structures by locals to avoid tax, it would re-introduce opportuntity for international avoidance.
If there’s still 0% CIT by this time next year, I’ll be very surprised – but the pressure needs to be maintained.