A draft tax law requiring companies to have greater economic activity in Jersey before being considered registered for tax purposes there has been lodged for debate by the States Assembly at its December 4 sitting, the government of Jersey has announced. The government said it would publish the draft law by November 5.
The development follows the EU Code of Conduct Group on Business Taxation decision last December place Jersey on EU’s so-called “gray list” of non-cooperative tax jurisdictions.
These countries have failed EU standards for tax cooperation but have pledged to reform their systems. In Jersey’s case, the problem is with laws that facilitate offshore structures that attract profits without real economic activity.
If Jersey does not show adequate progress toward reform, the EU Code of Conduct Group will move Jersey to its tax blacklist.
The government launched a consultation on an outline of the proposal last August and received responses from 35 groups.
“The consultation responses show that the financial services industry believes that good corporate governance in Jersey, and high professional standards, mean that most companies within the scope of the draft Law will readily be able to demonstrate that they meet the requirements,” the Jersey government said.
The latest draft incorporates recommendations made during the consultation, the government said.
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