A report in the Jersey Evening Post today reveals that Jersey ministers have no idea as to whether their proposed law on economic substance will meet the EU's requirements, or not. There are no links I can find online as yet so scans will have to do:
The report adds (after some intervening text):
In other words, they have no clue.
And I continue to suggest that I am right to suggest that Ecofin will not agree. After all, why should they when the proposal fails to meet the EU's requirements?
We have been through this before, with the EU Code of Conduct on Business Taxation requirements where I correctly predicted that the EU requirements were not being met, and Jersey had to revise all its draft laws to meet the criteria that I had successfully identified in advance.
I am not being arrogant, or even presumptive, in saying that Jersey should heed my advice this time. The simple fact is that Jersey seems to have an extraordinary ability to kid itself as to the true meaning of EU requirements, and it is doing it again. But this time the risk of sanctions is much higher, and the timescale for getting things right is much shorter. I am genuinely acting with Jersey's best interests at heart when saying that they have got their proposals wrong by suggesting they only need apply to Jersey resident companies, when I am absolutely certain that no reasonable interpretation of the EU's expectation can mean that.
They know my number.
As do Guernsey and the Isle of Man come to that.
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You have taken my JEP title “long term critic of Jersey”.
Keep it active as I am sure you will.
Yours whenever you want it Mike 🙂
Jersey has been a seriously corrupt place for years so not sure how much the EU will be able to do about it. There are so many tax rackets going around, every island is at it, let alone serious criminal matters etc.
There is the possibility they know and are just footling for time.
Some of your readers may not understand why it is so difficult to campaign from within little places such as Jersey and why we must rely so much on “outsiders” to raise our complaints.
This blog will explain some of the problems and difficulties.
We hope one day to attract the cavalry from London but they always seem otherwise engaged.
https://voiceforchildren.blogspot.com/2018/11/stuart-syvret-and-vfc-discuss-jersey.html
Thanks Mike
Richard
Your interpretation of the article is somewhat inaccurate. The question was “when” it would be approved, and that’s the question which was answered.
Of course they don’t know whether it will be approved. That decision clearly cannot be made until Ecofin meet to consider it.
So Jersey has no clue if it will be approved
Or, I was right
Richard
It is solely for Ecofin to decide whether or not it accepts it. Jersey cannot dictate the outcome.
But that wasn’t my point. I was debating your interpretation of the copy article which you posted, which simply doesn’t say what you were inferring it said!
I said Jersey hasn’t a clue
This also happened on the EU Code of Conduct, where they failed to make reasonable soundings