TaxCorporate TaxJersey faces sanctions over tax compliance

Jersey faces sanctions over tax compliance

The crown dependency of Jersey is facing the threat of sanctions if it does not act to bring its financial systems in line with guidelines set out by Organisation of Economic Development and Cooperation.

The Channel Island is set to have ‘one or two problems’ with the OECD’s efforts to force called tax havens adopt more transparent and accountable financial systems. It also accused the OECD of opening up areas of debate that had already been resolved.

But official pressure is now being put on Jersey by to Treasury to comply after Gordon Brown publicly campaigned for greater global financial transparency, according to the FT.

Measures imposed could include a tightening of rules relating to overseas countries locating their operations in Jersey for tax purposes – the lifeblood of many island-type economies.

Last year the OECD named and shamed 47 of what it called ‘potential tax regimes’ in OECD member countries. It also described 35 jurisdictions as ‘tax havens’.

Jersey, along with the Channel Islands and the British territories of Gibraltar, Montserrat, the British Virgin Islands, the Turks and Caicos Islands and Anguilla are all on the list and face the threat of having favourable tax treaties scrapped and other harsh penalties unless they agree to OECD reforms.

A number of previously uncooperative territories have recently agreed to OECD reforms and will not be included on the blacklist, the most recent of these being the West Indian island of Barbados. Others include Tonga and the Isle of Man.

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson