The Jersey Evening Post notes:
The latest statistics for the Island’s finance industry show a marked decline in both bank deposits and funds.
In the three months to 31 March, bank deposits fell by £10.1 billion to £195.9 billion. The net asset value of funds under administration decreased by £26 billion to £215.1 billion over the quarter and the total number of funds fell by 59. Company registrations were down by 24.4 per cent compared to the same period last year.
Jersey’s economic model is predicated on significant real growth to make its zero/10 tax model work. If it fails the black hole I have long predicted in its finances will become a reality.
The local goods and services tax will have to rise substantially. And even so I doubt its ability to make good the cost of providing zero tax to non-residents. Put simply, the model is broken.
Just as the many comments from people on this site saying business is booming in the place shown to be exactly what they are — untrue.
Michael Foot please note.
And this can only get much worse when the new European Union Savings Tax Directive comes into force, as it will.