{"id":9860,"date":"2011-05-03T10:25:12","date_gmt":"2011-05-03T09:25:12","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=9860"},"modified":"2011-05-03T10:25:12","modified_gmt":"2011-05-03T09:25:12","slug":"if-you-dont-think-channel-islands-foundations-arent-meant-to-abuse-the-uk-read-this","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/05\/03\/if-you-dont-think-channel-islands-foundations-arent-meant-to-abuse-the-uk-read-this\/","title":{"rendered":"If you don’t think Channel Islands’ Foundations aren’t meant to abuse the UK, read this"},"content":{"rendered":"

I've just noted that Guernsey is planning to introduce laws so that foundations c<\/a>an be established on the island.<\/p>\n

They like to say\u00a0this\u00a0is for the\u00a0benefit\u00a0of\u00a0clients\u00a0from places like Russia. But that's a\u00a0convenient\u00a0charade that's blown apart by the\u00a0publications\u00a0of the so-called tax planning industry, as this publication from UK based Jordans shows.<\/a><\/p>\n

As they say:<\/p>\n

The Jersey Foundation\u2019s widest application will be as a\u00a0\u201ccorporate trust\u201d for civil code settlors, many of whom will not be\u00a0resident in the UK.<\/p>\n

Nevertheless the Foundation is likely to be used in future as an\u00a0alternative to the trust for UK Founders.<\/p>\n

In particular there are likely to be UK CGT advantages to be\u00a0obtained in using Jersey Foundations.<\/p>\n

There may also be UK income tax advantages compared with\u00a0trusts, where the Founder and his or her spouse or civil partner\u00a0are excluded from benefit (to avoid s624 and s720 charges)\u00a0and the Foundation is receiving UK source income.<\/p><\/blockquote>\n

These foundations have only been\u00a0made\u00a0available recently.<\/p>\n

There can be no doubt whatsoever that Jersey remains a tax haven \/\u00a0secrecy jurisdiction.<\/p>\n

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.<\/p>\n

Jersey seeks to openly undermine the UK tax system.<\/p>\n

And the UK\u00a0government needs to say quite explicitly that it's had enough of it doing so and is going to stop it.<\/p>\n

Why isn't it doing so? Could it be too many Tories use its\u00a0services? Just a thought.<\/p>\n","protected":false},"excerpt":{"rendered":"

I’ve just noted that Guernsey is planning to introduce laws so that foundations can be established on the island. They like to say\u00a0this\u00a0is for the\u00a0benefit\u00a0of\u00a0clients\u00a0from
 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":[14,4,7,80,10],"tags":[],"class_list":["post-9860","post","type-post","status-publish","format-standard","hentry","category-corruption","category-guernsey","category-jersey","category-secrecy-jurisdictions","category-tax-avoidance"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/9860","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=9860"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/9860\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=9860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=9860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=9860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}