A furious row is breaking out in Jersey. Deputy Montfort Tadier gave an interview to the French newspaper Le Parisien in which he answered their questions as follows (via Google translate):
Jersey is it, yes or no, a tax haven?
MONTFORT Tadier. Yes! Say that Jersey is not a tax haven but an "international center for low-tax" only a matter of semantics. The truth is that most other countries see us as a tax haven. And that many of their citizens hide their assets to us.Is it because she specializes in Jersey trusts that attracts candidates for tax evasion?
Yes. It should be noted that in itself a trust instrument is a completely legal. But there is next to a system of fictitious trusts, "sham trusts". These have only one purpose: to allow foreign residents who put up the eyes away from their original tax.Within the airport St Peter, a private room allows even the most hurried travelers constitute a trust without putting a foot in St Helier ... Result: Jersey are now primarily to allow people who live not here to escape the taxes they would pay in their own country.Who are the victims of this system?
States whose coffers are empty and all the citizens who pay their taxes honestly. Certainly, we have strengthened our procedures.In spite of this, devices and tax arrangements proposed here hanging over your budget. Our practices deprive the French tax authorities million.The French tax evaders are there many?
Dozens of French settled on the island and live there all year(note: tax exiles) . I do not have exact figures on tax evaders. But as citizens of the world come to Jersey trusts use to escape the tax, why should there not French? Moreover, if two major French banks, the Societe Generale and BNP Paribas, are present on site, there is surely a reason ...What are the consequences for the people?
Jersey was captured by the finance, risk of increasing inequality .In 2008, the government has introduced the Goods and Services Tax (GST), a consumption tax that applies for all commodities to offset losses caused by the removal of the tax on profits for foreign companies domiciled in Jersey.Jersey But could it survive the departure of finance?
Course, and anyway, finance will leave sooner or later. We must prepare for the future now. For this, we need investment. We need to diversify our activities and further develop tourism.
To almost anyone with common sense there is nothing shocking about this at all. Indeed, it all seems to be a matter of common sense. But the Jersey authorities have gone ballistic. I'll be dealing with the fall out later today. But to say that the Jersey authorities have made themselves look very, very foolish as a result is an understatement, because what they've actually revealed as a result is their belief in the totalitarianism without opposition in the interests of the finance industry.
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Excellent! Good to see Jersey has at least one decent Deputy not afraid to ‘appeler un chat un chat’! All power to his elbow. I hope he’ll survive the pressure he’ll be under.
If (as a long-term French resident) I may permit a few corrections to the most potentially confusing parts of the (rather awful)rendering of Google translate:
“hide their assets to us” should read “hide their assets WITH us” (chez nous)
“to allow foreign residents who put up the eyes away from their original tax” =
“to allow foreign residents WHO PUT THEM [THE TRUSTS]IN PLACE up TO DISAPPEAR IN the eyes OF their HOME TAX AUTHORITIES”
“Our practices deprive the French tax authorities million” = “Our practices deprive the French tax authorities OF MILLIONS OF EUROS”
“What are the consequences for the people?” = “What are the consequences for the inhabitants [OF JERSEY]?”
Thank you
Tax havens have been around for a long while. What they depend on is tax raising countries to be sufficiently unaware, lax, incompetent or corrupt enough to fail to police their taxation systems. In the case of the UK even back in the 50’s it was apparent that some people were using Monaco and Switzerland. Then in the 60’s and 70’s some of our former colonies were set up as “independent” and being bereft of any natural or other economic resources actually encouraged to become banking and finance dependent. In short The Treasury, Government and both the leading political parties were permitting tax avoidance/evasion. At the time it was all kept rather quiet. Curious or corrupt?
Is Philip Ozouf claiming that sham trusts don’t exist in Jersey?
I will be addressing this issue very soon
Richard,
Would you agree that there is a symbiotic relationship between the States of Jersey and the Jersey finance industries?
The finance industry cannot operate without the collusion of the States of Jersey, but likewise the States of Jersey could not pursue its fascist agenda of social control over the people of Jersey without the money it receives (directly and indirectly) from the finance industry.
The sort of fascist control that would seek to prevent one of the islands deputies from speaking honestly?
I do agree
My french is iffy but the intro says he (Tadier) has been elected deputy twice and ‘il se situe a gauche’ which i assume means he’s politically on the left. If this is the case there must be a constituency of islanders who oppose the status quo – I didn’t know this.
There are
In St Helier there is a small but significant tradition of opposition
They’re brave people
In reply to Simon cohen
But first, Ozouf and Tadier go head to head before the camera, AND Channel TV leave it on their website – HUURRY WHILST THIS IS STILL THERE
http://www.channelonline.tv/channelonline_jerseynews/DisplayArticle.asp?ID=505076
(It is the SECOND video clip) I think Richard’s comments on the claims made in this clip by Ozouf would be most illuminating.
But back to Simon:
Yes, there are at least two strands in the island who are unhappy about Finance.
There are some who oppose the Finance Industry for moral reasons, or, more precisely, they are opposed to the Finance Industry insofar as what it does is immoral. (Round the word “immoral” of course there is the debate: do you mrean “objectively immoral”? Or do you mean “I think it is immoral, but you are free to disagree”? But I leave this to one side for today!)
Note that I leave open the possibility, or even the likelihood, that much or maybe even most of what the Industry does is morally neutral. And certainly, as you Richard have shown, there is always the path available to mutate into a wholly ethical industry – Plan B
The other group just lament the Jersey which existed before the finance industry came along, doubled the population in 50 years, doubled the traffic, doubled the impact of building in our gorgeous countryside, and changed the island in so many ways.
I met two of these when canvassing for a fair voting system in the recent referendum. They were in despair at where the island they knew and loved had gone, so much so that they do not vote any more. ‘There is no point,’ they said, ‘ “they” do not listen anyway.’
OK so change is inevitable. the problem is that the change was never DISCUSSED or AGHREED by the people of Jersey. No doubt it looked like a good idea at the time.
I love this island, I was born here and will probably die here too. But, like Tadier I am revolted by the fact that we gain so much from rich people and businesses avoiding their dues where they live. I know people in the industry, they are told which phone to answer with which message, which fax to use for which company/trust. It’s my belief that a large portion of the Jersey finance industry is nothing but a big “legal” scam. K2, the Green chap and Monaco, the list goes on and on.
Some are trying to make Tadier out as some sort of traitor for what he has said, I say he is a hero. I would re elect him tomorrow, I’d rather hear the truth any day no matter how uncomfortable that may be.