If you don’t think Channel Islands’ Foundations aren’t meant to abuse the UK, read this

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I've just noted that Guernsey is planning to introduce laws so that foundations can be established on the island.

They like to say this is for the benefit of clients from places like Russia. But that's a convenient charade that's blown apart by the publications of the so-called tax planning industry, as this publication from UK based Jordans shows.

As they say:

The Jersey Foundation's widest application will be as a “corporate trust” for civil code settlors, many of whom will not be resident in the UK.

Nevertheless the Foundation is likely to be used in future as an alternative to the trust for UK Founders.

In particular there are likely to be UK CGT advantages to be obtained in using Jersey Foundations.

There may also be UK income tax advantages compared with trusts, where the Founder and his or her spouse or civil partner are excluded from benefit (to avoid s624 and s720 charges) and the Foundation is receiving UK source income.

These foundations have only been made available recently.

There can be no doubt whatsoever that Jersey remains a tax havensecrecy jurisdiction.

Secrecy jurisdictions are places that intentionally create regulation for the primary benefit and use of those not resident in their geographical domain. That regulation is designed to undermine the legislation or regulation of another jurisdiction. To facilitate its use secrecy jurisdictions also create a deliberate, legally backed veil of secrecy that ensures that those from outside the jurisdiction making use of its regulation cannot be identified to be doing so.

Jersey seeks to openly undermine the UK tax system.

And the UK government needs to say quite explicitly that it's had enough of it doing so and is going to stop it.

Why isn't it doing so? Could it be too many Tories use its services? Just a thought.

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