{"id":20522,"date":"2013-05-06T08:13:53","date_gmt":"2013-05-06T07:13:53","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=20522"},"modified":"2013-05-07T12:28:17","modified_gmt":"2013-05-07T11:28:17","slug":"tax-havens-are-not-tax-neutral-jersey-please-note","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2013\/05\/06\/tax-havens-are-not-tax-neutral-jersey-please-note\/","title":{"rendered":"Tax havens are not tax neutral, Jersey please note"},"content":{"rendered":"

Senator Philip Ozouf, the finance\u00a0minister\u00a0of Jersey, has claimed in this interview with\u00a0Channel\u00a0TV <\/a>that Jersey is 'tax neutral'. His\u00a0claim\u00a0is that no tax in Jersey simply allows tax to be paid where a source of income arises and where it goes to but not in Jersey. It is this, he says, that\u00a0Deputy\u00a0Tadier does not\u00a0understand.<\/p>\n

Phlip Ozouf is wrong. The\u00a0legitimate\u00a0use of Jersey has at\u00a0least\u00a0one of four goals. They are to:<\/p>\n

1) \u00a0Change the person who is taxed on a source of income ( putting a Jersey structure in place is bound to do this);<\/p>\n

2)\u00a0Delay\u00a0the time when tax is paid on a source of income (and this is a major\u00a0objective\u00a0of avoidance, since\u00a0delaying\u00a0payment has real cash value and it can often be done almost indefinitely by using Jersey);<\/p>\n

3) To change where the tax is paid - by diverting it via Jersey to another location from that which it would\u00a0otherwise\u00a0have gone to;<\/p>\n

4) Reduce the amount of tax paid - by any of the first three means.<\/p>\n

If tax compliance is seeking to pay the right amount of tax (but no more) in the right place at the right time where right means that the economic substance of the transactions undertaken coincides with the place and form in which they are reported for taxation purposes then it is glaringly obvious that Jersey seeks to help the wrong person pay the wrong amount of tax at the wrong time in the wrong place.<\/p>\n

That's not tax\u00a0neutrality. That's a gross abuse of the world's tax system, assisted by secrecy, that in combination undermines the smooth operation of the world's markets resulting in misallocation of economic\u00a0resources\u00a0and so an overall loss of well being for the world.<\/p>\n

There's nothing tax neutral about that: there's just economic harm. And Philip Ozouf continues to\u00a0pretend\u00a0people can't see that.<\/p>\n","protected":false},"excerpt":{"rendered":"

Senator Philip Ozouf, the finance\u00a0minister\u00a0of Jersey, has claimed in this interview with\u00a0Channel\u00a0TV that Jersey is ‘tax neutral’. His\u00a0claim\u00a0is that no tax in Jersey simply allows
 Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,10,32],"tags":[],"class_list":["post-20522","post","type-post","status-publish","format-standard","hentry","category-jersey","category-tax-avoidance","category-tax-havens"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/20522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=20522"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/20522\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=20522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=20522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=20522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}