The Guardian has reported that:
The UK will never be granted a free trade agreement with the European Union if it seeks to take advantage of Brexit by setting itself up as an offshore tax haven for businesses and the wealthy, the EU economic affairs commissioner has warned.
I have not the slightest doubt that the Commissioner is right to be concerned. And his threat of sanctions is appropriate. As it is in another case:
Pierre Moscovici also warned that UK tax jurisdictions such as Jersey could find themselves moved from an EU grey list to its black list if they fail to comply with EU standards on exchanging tax information. The black list was set up earlier this month, and Moscovici is still urging the EU to set out clear sanctions to enforce compliance.
“We will check and if their commitments are not serious they will be put on the black list in six months,” he said. “Thereafter we will change the list once a year.”
Here the threat is explicit and real. I have made it clear just how much will be expected of Jersey, as well as the other Crown Dependencies and Overseas Territories to meet the EU's demands. I also confirm that I have sent my concerns to the EU Directorn General of Taxation, as I said I would. He has acknowledged their receipt.
Right now Jersey knows nothing about 87% of the companies based in the Island. This makes a mockery of its claim on the Jersey government web site that the Island is ‘leading the way in efforts to prevent tax abuse'. I note there are those in Jersey mocking my suggestion on this issue, as there are those who will no doubt dismiss the Commissioner. This is 'the Jersey Way' at work, best explained by the Jersey Care Inquiry:
Jersey has always pretended to comply with its international tax obligations whilst the abuse continues. This time I think they will find it is different. The Jersey way will meet its match.
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Richard
What on earth are you talking about? Jersey already fully exchanges tax information and has met every demand asked of it by the EU and OECD. That is not the same as public beneficial ownership information which is a different topic altogether – the information which it would have to provide to the prying public is information which has already been provided to international tax authorities.
It is ridiculous to link comments of a police officer under the Care enquiry to tax information exchange. There is not even a remote correlation.
But hey, don’t let your rabid hatred for Jersey get in the way of a lazy soundbite.
Jersey hasn’t got the data to information exchange
And the world knows it
Now go away and stop defending the indefensible and get ready for a different New Year
Sorry but that’s simply not true.
Jersey regulated financial services companies have been submitting data over the past year on all Jersey-administered entities to the Jersey tax authorities for onward transmission to the UK. Have you not heard of CRS?
Your information is out of date and, as a result, materially incorrect. If you are going to make such bold claims then please at least do your homework first.
Sure I know of the CRS, but Jersey does not know about 87% of all companies located in its territory. Of course it will claim as a result they are not covered by Jersey CRS. But whose CRS are they covered by? Who knows?
And that is the whole point
Richard, you forget It’s pantomime season.
“Jersey already fully exchanges tax information ”
Oh, No It doesn’t.
Oh, Yes it does.
You are simply ignoring the fact that they do not collect information on the vast majority of businesses based in Jersey and clinging to the simplistic claim that they freely exchange information on those they do have data on. It is deliberately misleading and transparently so.
Repeating a nonsense over and over does not make it more reasonable…
We live in hope.
As opposed to Hope which is in Derbyshire. Maybe a haven, but not noted as a tax haven.
Jeremy is right. Jersey will give full details of all the companies that provide that data & it will provide nil details of all the companies (87%) that provide no data.
As the old saying put it so succinctly “ask me no questions & I’ll tell you no lies”.