EU ‘backtracked on zero-ten tax’ ¬ª News ¬ª This Is Jersey.
The JEP notes:
JERSEY was given ‘green lights all the way’ on zero-ten, according to former Chief Minister Frank Walker.
He says that when Jersey was proposing the zero-ten corporate tax system in response to EU pressure on tax-exempt companies, both the UK and Ecofin — the EU Economic and Financial Affairs Council — had approved the plan.
And he's right: in 2003 there is no doubt that the Crown Dependencies asked if a general tax rate of 0% with 10% on a restricted range of financial institutions was acceptable in principle - and they were told it was.
The trouble was, none of them declared that they were moving the 'ring fence' that meant locally owned companies paid tax and non-resident owned companies did not out of corporate tax and into the personal tax regime. That was not disclosed: I know, I went to Brussels to find out in 2006 and was told this was not known.
So I note that:
Mr Walker backed current Chief Minister Terry Le Sueur’s position that the EU had ‘backtracked’ over the tax system.
But I could only agree that:
‘There is absolutely no question about it — Jersey was given green lights at every stage of the process,’ said Mr Walker, who retired from the States last December. ‘We got the green light at every point that we needed it, from the UK government, from Ecofin which was the body responsible for agreeing or not the new tax measures. We were getting green lights all the way down the line.
if the evidence is tabled that proves it.
Without it the claim that:
‘But we have to accept that the member states find themselves in an unprecedented situation. They have had to make colossal changes including bailing out banks and running fiscal stimuli that they would never have dreamed they would have to do three or four years ago.’
is right now a lame political excuse to cover up the fact that Jersey could never have had its zero ten system approved - precisely because there was no mechanism to do so until it was enacted - and then it takes a year or so (21 months in the case of the EU rejection of the Isle of Man scheme introduced in January 2006). In which case all the claims that the system was approved were wrong - it never was, and I can see no way it could have been.
But put documents on the table that show it was approved - finally and completely as was boldly claimed by Walker and Le Sueur - and of course I'll accept I'm wrong, and apologise.
Thanks for reading this post.
You can share this post on social media of your choice by clicking these icons:
You can subscribe to this blog's daily email here.
And if you would like to support this blog you can, here:
Yes these people are the ultimate in disingenuous mendacity
Good to see that Frank is setting out the true position now.
Matt
How do you know?
Richard
It is time the Channel Islands told outsiders to get stuffed, as Frank says, changing the goal posts as it suits seems to be the situation here. They only ever find fault with excellently run offshore finance centres. The Channel Islands have always been open, transparent and have played a key role in global economics. It is time they had a break.
And here is more proof of how great Jersey finance is:
http://www.thisisjersey.com/2009/10/20/jersey-wins-top-trust-award/
JERSEY has been named the international finance centre of the year by the STEP private client awards 2009.
The Island beat competition from Bermuda and the British Virgin Islands for the title, which was awarded to Jersey Finance at a ceremony in London last week.
Jersey Finance was not the only Island representative to fare well in the awards — Ogier was announced as the legal team of the year, while the lifetime achievement award went to Jersey’s former Bailiff, Sir Philip Bailhache.
STEP — the Society of Trust and Estate Practitioners — is the professional body for lawyers, accountants, bankers and financial advisors worldwide and its annual awards highlight excellence in these industries.
The awards, presented by author, ex-politician and media personality Gyles Brandreth, were judged by a panel of 14 experts and more than 100 industry professionals worldwide.
@ Matt 😯
Being awarded the “International finance center of the year” by STEP is equivalent to being awarded the “most ingenious Ponzi scheme” by Madoff.
Your stubborn defense of a tax evading assistance industry is commendable. Unfortunately the entire industry is going to have to retool. May I suggest boat building, fishing or cultivating cash crops.
Yep Matt
As sure as gesg is eggs.
Arnald
I am not so sure that “gesg” is eggs!
Mark you just hate offshore finance. No other response to such a bitter post from me I am afraid.
Yes JfD
That’s why the statement “how great Jersey finance is” when judged by STEP etc is only technically true.
gesg is eggs
Or like the Chief Ministers of IoM, Guernsey and Jersey are tough on compliance and tough on the causes of compliance, citing their core ethic that they are protectors of genius investors, they will stand up in front of media with no hesitation in calling a spade a dspae.