A newly approved tax system in Jersey has enraged tax activists who believe
the new regime, called 0/10, will bleed the island’s finances dry.
The Jersey government approved the 0/10 plan last week after intense pressure
from the European Union. The tax haven had previously exempted foreign investors
from corporation tax and levied a 20% rate on Jersey residents.
This system of preferential treatment was unacceptable to Europe and, to
appease Brussels, Jersey went ahead with 0/10, which exempts from corporation
tax all businesses except those in financial services, which will pay a tax rate
Jersey officials believe the new system will satisfy Europe, while retaining
the island’s attractiveness as a low-tax jurisdiction for foreign investors. Tax
activists, however, have claimed it will blow a £120m hole in Jersey’s £500m
Richard Murphy, from Tax Research Limited, said the island would have to fund
the shortfall by imposing other taxes on locals.
‘Jersey is planning a goods and services tax to fund the shortfall from 0/10
and will probably have to look at income tax too. This will hurt the people of
Jersey who will have a higher cost of living in a place that is very expensive
to live,’ Murphy said.
Murphy added that the goods and services tax would only raise £45m, which
would force the Jersey Treasury to use its £500m of reserves to make up the £75m
HMRC has won its tenth successive case against tax avoidance schemes promoted by NT Advisors. The Court of Appeal has ruled that NT ... read more
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
Since the release of HMRC’s plans for digital tax reforms, many have agreed with the call for a delay