BIG SIX - E&Y set to register in Jersey if LLP legislation gets go-ahead.
Ernst & Young could be registered offshore by September if the Jersey parliament votes in favour of legislation paving the way for limited liability partnerships next month.
E&Y said it was still keen to move to the channel island, despite the government’s offer of LLP legislation in the UK. Until now the legislation has been held up while additional clauses covering the insolvency of LLPs have been drafted.
The Jersey finance committee, which is sponsoring the legislation, thanked E&Y and Price Waterhouse for their financial support during the drafting of the legislation.
PW’s move offshore is clouded by its merger plan with Coopers & Lybrand.
The committee has relied on the services of the firms’ lawyers in Jersey and London to help draft the regulations, leading to criticism by some members of the parliament that the legislative process on the island had been ‘bought’.
But the legislation could be ignored by the firms if they lose their battle with the Inland Revenue, which said last year it would tax LLPs as if they were corporations.
Joss Nangle, E&Y’s risk management partner, said: ‘We are still interested in Jersey, but any move is dependent on the Revenue’s decision.’
The regulations were due to be discussed this week, but the debate was delayed following the illness of senator Frank Walker, the finance committee chairman. The debate will now take place on 12 May, when the parliament is expected to incorporate them into legislation.