The offshore tax haven faces an uncertain future with the European Commission and the UK seeming certain to clamp down on the islands tax avoidance schemes, reported Tax-News.com

The Jersey Evening Post reported Austin as saying: 'If you talk to people in the finance industry, for instance fund managers, some would want to join the EU.'

John Christensen, former economic advisor to the Jersey Government, told Accountancy Age that the island relies on the finance industry for up to 90% of its income. He said any clamp down on its tax haven status would force Jersey to consider joining the EU.

He went on to say he fell out with the government because of its over reliance on financial services.

Richard Murphy, a member of the Association of Accountancy and Business Affairs, went one further saying the jurisdiction would 'self-implode within three years' because it is 'staggeringly dependent on corporation tax'.