I note the Jersey Evening Post reported yesterday that:
EUROPE could force Jersey to introduce a capital gains tax, one of the UK’s foremost critics of tax avoidance has warned.
The introduction of such a tax, which could mean Islanders would have to pay tax on the sale of property and businesses, could be the ‘sting in the tail’ of Europe’s ruling on zero-ten, says Richard Murphy, of the Tax Justice Network.
He said that a source within Europe had told him that tax officials were still not happy with changes Jersey had made to the its zero-ten company tax policy.
However, Treasury Minister Philip Ozouf dismissed the claims as nonsense. He said that Mr Murphy would not stop attacking Jersey until it was fully integrated into the UK and that he had been proved wrong many times in the past
All I can say is that I have been told what is reported: of course my sources may be wrong. To date they have proved very reliable.
As indeed have I. Philip Ozouf may like to say I'm wrong but the list of things I've got right about Jersey is long:
- The first zero / ten proposal would fail. It did
- The revised zero / ten proposal would fail. It did.
- 20 means 20 would not raise significant funding. It did not.
- The introduction of zero / ten would leave a black hole in excess of £100 million which Jersey always denied. It did leave a black hole of that size.
- GST would not stay fixed at 3%. It did not.
- The States would not be able to cut spending to fix the black hole. They haven't been able to do so.
I'm sure there is more, but that will do.
Indeed, my problem is that I'm having a problem thinking what I've got wrong so far in the predictions I have made over many years. And if the capital gains information is right (and all I can say is it has come from a reliable source) then my latest prediction that issues would still be raised with zero / ten will prove to be right too.
It's juist a shame Philip Ozouf does not enjoy the same record of success on predicting what will happen in Jersey. If he had they wouldn't be in the mess they're in now.